Vancouver Real Estate Market Update – March 2020
Dear Reader,
First of all, hope you and your loved ones are staying safe and healthy.
March 2020 statistics have been released. Selling rate in Metro Vancouver increased from 17% in January to 22% in February to 26% in March. The number for March should have been much higher, but the reduction of approximately 33% of sales volume for the second half of March due to the COVID-19 Pandemic has pushed down the eventual growth.
Supply dropped again, pushing up the activity and price. Since mid-march, the real estate market went upside down. The Selling window is rapidly closing. Currently we are still seeing fair activity for around market value for sales. So if you are looking to sell, DO NOT WAIT! Soon, we predict it will quickly move into a “Desperation Sale” market as people run out of liquidity to maintain themselves and family. That’s when “cash is king” and the best opportunity for Buyers are. We are always available via phone or email if you would like to discuss your options.
Are you or anyone you know thinking of Selling, Buying, or Both this year? Please reply to this email or call/text Alex at 604-374-5534 for a brief conversation to discuss options. Knowledge is value.
According to the Real Estate Board:
VANCOUVER, BC – April 2, 2020 – Metro Vancouver’s* housing market saw steady home buyer demand to begin March and a levelling off of activity as the month went on and concerns about the COVID-19 outbreak intensified.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,524 in March 2020, a 46.1 per cent increase from the 1,727 sales recorded in March 2019, and a 17.4 per cent increase from the 2,150 homes sold in February 2020.
Last month’s sales were 19.9 per cent below the 10-year March sales average.
“The first two weeks of the month were the busiest days of the year for our region with heightened demand and multiple offers becoming more common,” Ashley Smith, REBGV president said, “Like other aspects of our lives, this changed as concerns over the COVID-19 situation in our province grew.”
Daily residential sales on the region’s MLS® were 138 on average in the first ten business days of the month. In the final ten business days of the month, the daily average declined to 93 sales.
“Many of the sales recorded in March were in process before the provincial government declared a state of emergency. We’ll need more time to pass to fully understand the impact that the pandemic is having on the housing market,” Smith said. “In recent weeks, REALTORS® have been working to help and guide their clients through this uncertain period. Many people have understandably chosen to put their home buying or selling plans on hold for now. Other people have more urgent housing needs and we’re trying to work with them to address these needs in the safest and most responsible way possible.”
Alex’s Inner Circle Intel
Supply dropped again, pushing up the activity and price. Since mid-march, the real estate market went upside down. The Selling window is rapidly closing. Currently we are still seeing fair activity for around market value for sales. So if you are looking to sell, DO NOT WAIT! Soon, we predict it will quickly move into a “Desperation Sale” market as people run out of liquidity to maintain themselves and family. That’s when “cash is king” and the best opportunity for Buyers are. We are always available via phone or email if you would like to discuss your options.
Shortly, as we settle into the unfortunate “Desperation Sale” market, Buyers are equipped with low interest rates, backing of government funded programs, facing a low priced market. And as soon as the Pandemic is over (and it WILL be over sooner or later), with a government stimulus package that will undoubtedly occur to speed up the recovery of the economy, plus the release of the pent up pressure from the halt of the current trend of market growth trajectory, facing another rapidly growing market may not be out of question.
So what does this mean? If you are looking for some advice, CALL US ASAP. We are happy to walk through your options with you.
As usual, we are here to provide some detailed relevant information segmenting different markets, to make it more applicable to your situation.
At the bottom of this email, you will find a copy of the Snap Stats, which is one of the tools we utilize to provide value to our clients. Please do feel free to call Alex at 604-374-5534 to discuss in more detail with regards to your specific areas.
In the Snap Stats attached below, you will find the activity of the different price ranges per area. As a rule of thumb, sales ratio under 12% represents a downward pressure (Buyers’ market). Sales ratio between 12% to 20% represents a balanced market. Sales ratio above 20% represents an upward pressure (Sellers’ market).
If you are looking to make a move of any sort, Call or Email Alex to arrange a quick 30-minute chat to see whether it’s right for you right now. Everyone’s priorities and timing are different, and you need to equip yourself with the best and most relevant information for you and your family. Plan early, so you know when to execute for the highest profits.
WHAT DOES THIS MEAN TO YOU?
Sellers – If you are looking to sell in the next few months, speed up the process. Call Alex NOW. Your window is quickly closing. We don’t know how long this will last. A dime in the pocket is better than a dollar in the bush. If you are looking to sell, please call Alex at 604-374-5534. You want the LOCAL EXPERT on your side!
Buyers – If you are looking to purchase a property, your time is coming. This may be one of the best times in the next decade to get into the market, whether it’s for a home or an investment property. If you are looking to buy, please call Alex at 604-374-5534. We would be privileged to assist if you are in need of expertise.
DETAILS MATTER
Details matter in this market. You have to go in with your eyes wide open. If you need any guidance or assistance, please do reach out and call Alex at 604-374-5534, or simply reply to this email. I look forward to helping you and/or your family and friends with all your Real Estate needs.