METRO VANCOUVER MARKET REPORT
There are too many different market predictions so it is better just to keep watch on trends as they emerge.
The graph above indicates that for May 2020 the sales of 1499 residential homes are low (decrease of 54%) compared to the 10 year May average. These sales are a 43.1 per cent decrease from the 2,635 sales recorded in May last year and a 33.8 per cent increase from the 1,120 homes sold in April last month.
The number of NEW listings increased from last month from 2609 to 3697 an increase of 60%. There is a reasonably healthy inventory of homes of 6.7 months of inventory and lower sales puts us in a balanced market where activity appears to be picking up.
Generally for May the benchmark prices of homes have been steady.
The Real Estate Board of Greater Vancouver (REBGV) reports that the MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver today is $1,028,400. This is virtually unchanged from April 2020, a 1.4 per cent increase over the last three months, and a 2.9 per cent increase compared to May 2019.
Sales of detached homes in May 2020 reached 534, a 41.5 per cent decrease from the 913 detached sales recorded in May 2019. The benchmark price for detached properties is $1,456,700. This is a 0.3 per cent increase from April 2020, a 2.2 per cent increase over the past three months, and a 2.9 per cent increase compared to May 2019.
Sales of apartment homes reached 653 in May 2020, a 47.6 per cent decrease compared to the 1,246 sales in May 2019. The benchmark price of an apartment home is $686,500. This is a 0.3 per cent decrease from April 2020, a 0.9 per cent increase over the past three months, and a three per cent increase compared to May 2019.
Attached home sales in May 2020 were 298, a 37.8 per cent decrease compared to the 479 sales in May 2019. The benchmark price of an attached home is $792,700. This is a 0.2 per cent increase from April 2020, a 1.2 per cent increase over the past three months, and a 1.8 per cent increase compared to May 2019.
Sales to Active listing ratios
The sales-to-active-listings ratio is defined as the number of home sales divided-by the number of listed homes during the month. In May 2020 , the ratio was 13.5% for detached homes, 18.9% for townhomes, and 14.8% for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“Home prices have been stable during the COVID-19 period. While we’re seeing a variety of long-term projections for the market, it’s critical to understand the facts and trends as they emerge.” — Colette Gerber REBGV President-elect
There were 3,684 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in May 2020. This represents a 37.1 per cent decrease compared to the 5,861 homes listed in May 2019 and a 59.3 per cent increase compared to April 2020 when 2,313 homes were listed.
“Home buyers and sellers are working with their REALTORS® to use new tools to complete different stages of the real estate transaction virtually,” Gerber said. “When in-person interactions are necessary, we’re working with our clients to follow the physical distancing requirements set out by WorkSafeBC and the provincial health officer.”
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,927, a 32.4 per cent decrease compared to May 2019 (14,685) and a 5.7 per cent increase compared to April 2020 (9,389).
Metro Vancouver Market Report Summary May 2020
Author: Meryl Hamdillah is a licensed REALTOR with Sutton WestCoast Group and an active community writer in Tri-Cities and Vancouver. If you’re planning to buy or sell real estate in Tri-Cities or Metro Vancouver areas or you want to stay up to date in real estate market, feel free to call or text 604-307-9506