“Predictably, the number of home sales and listings declined in April given the physical distancing measures in place,” Colette Gerber, REBGV’s president-elect said. “People are, however, adapting. They’re working with their Realtors to get information, advice and to explore their options so that they’re best positioned in the market during and after this pandemic.”
“We’re seeing more innovation in today’s market, with Realtors using different technology to showcase homes virtually, assess neighbourhood amenities with their clients and handle paperwork electronically,” Gerber said.
According to REBGV, “The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,036,000. This represents a 2.5 per cent increase over April 2019 and a 0.2 per cent increase compared to March 2020”.
“Home prices have held relatively steady in our region since the COVID-19 situation worsened in March,” Gerber said.
While sales were down in April, prices have remained stable. As households and the real estate sector implemented measures to flatten the curve in April, activity slowed. We believe the pent-up demand and historically low interest rates will augment the market recovery as long as the government financial piece is able to keep households afloat.
According to a recent TD Housing Forecast Update and economist Rishi Sondhi, the key to market recovery is to avoid distressed selling as it puts a “floor on prices and sustains relatively tight-supply demand balances across most markets, allowing for the resumption of positive price growth as provincial economies are re-opened.” We are experiencing low levels of inventory in North Vancouver and we have yet to see distressed selling. The ability to defer mortgage payments for six months has assisted with this and meant that homeowners who would otherwise be in distress do not need to sell. We feel that the sellers who are putting their homes on the market are doing so because they are confident in our real estate market and have had good advice and guidance. The sellers are moving because they need to. This has reduced the number of listings and prices have remained stable because of this.
More encouraging news from the report, “Next year should see much stronger activity, as markets benefit from significant pent-up demand and historically low interest rates,” Sales are expected to rise by 50 percent, “paced by a strong gain in BC, where economic growth is likely to be relatively strong”.
The new home viewing procedures and social distancing measures are working well. It means that buyers are more thoroughly reviewing documents, floor plans and neighbourhoods prior to viewing. Carefully choosing the homes they step foot in. The days of the hobbyist open house goers and tire kickers are gone. We are seeing a more serious and thoughtful buyer looking at homes.
Good possibilities were noted in a recent REW article by Brian Shirlaw, “One possible bright spot: Given how hot the market was to start 2020, the sudden decrease in new listings being added could mean that, when the pandemic ends, we’ll see a massive influx of available properties and heightened customer demand. That’s only speculation at this point, but on REW, we are starting to see daily site traffic return to pre-Coronavirus volumes.”
If you need to sell or are curious about selling at this time, call us. We have the answers and you will never feel pressure from us to make a move. We are here to support, inform and advise.
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We are thinking of you and your families at this time. We are doing everything we can to keep safe, be kind and take care. We are in this together. We look forward to continue keeping in touch with you virtually and over the phone yet cannot wait for the time that we see you again in person.
Here are the numbers…
The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,066,600. This represents an increase of 2.2 per cent from the MLS® HPI over the last year and up 3.7 per cent over the last 3 years, up 42.3 per cent over the last 5 years and up 65.7 per cent over the last 10 years. The numbers indicate that past pricing gains have given North Vancouverites a cushion and prices are holding steady. We need a few months more of consistent data to get an indication of the COVID-19 impact.
There were 38 detached sales in April 2020, considerably lower than the 69 detached sales recorded in March 2020 and 53 sales in April 2019. The benchmark price for detached properties was $1,545,100. This represents an increase of 2.2 per cent over the last year and a decline of 5.4 per cent over the last 3 years (peak of the market), an increase of 33.8 per cent over the last 5 years and an increase of 69.3 per cent over the last 10 years.
The detached market is a buyer’s market with a sales ratio of 14 per cent and a build up of 7 months worth of inventory. This tells us that 1.4 out of 10 homes were priced properly while 8.6 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 27. Homes are selling on average for 96 per cent of list price. The detached inventory peaked in May 2019 at 475 and has been declining since. Inventory was at 266 listings last month. COVID-19 is not deterring all sellers and buyers from making a move. As the current new normal feels more normal, we are seeing homes listed and sold. The process has changed. We find consumers are feeling comfortable with the process and are proceeding with their plans.
North Vancouver saw 45 apartment sales in April 2020 that is about half of the sales in March 2020. The benchmark price of an apartment property is $572,500 (down about $10,000 from March 2020), a 1.6 per cent increase from April 2019. This represents an increase of 3.3 per cent over the last 6 months and an increase of 14.5 per cent over the last 3 years, an increase of 52 per cent over the last 5 years and an increase of 60.3 per cent over the last 10 years.
The condo market is a balanced market with a sales ratio of 18 per cent and a build up of over 5 months worth of inventory. The average condo listing sat on the market for 24 days less than the 29 days in March 2020 and on par with February 2020. Condos are selling on average for 96 per cent of list price. Nearly 2 out of 10 sellers priced their condos correctly while 8 out of 10 sellers did not. We are finding that price needs to be sharp to generate interest and viewings from the serious savvy buyers outs there.
Attached property sales in April 2020 totalled 8, less than the 30 sales in March 2020. The benchmark price of a North Vancouver townhome property is $986,100 (up from March 2020), which represents an 4.1 per cent increase from April 2019. This represents an inecrease of 5.3 per cent over the last 6 months, an increase of 8.3 per cent over the last 3 years, an increase of 54 per cent over the last 5 years and an increase of 65.8 per cent over the last 10 years. The gains are all up from our report last month.
The attached market is in a buyer’s market position with a sales ratio of 9 per cent and a build up of 11 months worth of inventory. The average attached listing sat on the market in April for 25 days consistent with March 2020 and February 2020. Attached properties are selling for nearly 98 per cent of list and about 1 townhome seller out of 10 priced their homes appropriately for the market while 9 did not.
Looking for more info? Call us, we are always happy to help.
Data courtesy of the BCREA, REALTOR® Report, REBGV and SnapStats®