The Neal Estate Team's Real Estate Market Update for Vancouver Island for May 2020

While Vancouver Island residents came together to prioritize health and safety, “The Spring Market” experienced the expected impacts of social distancing and stay-at-home measures. Single-family home sales were down 54.1% compared to April last year with 189 properties sold and down 43.2% from March 2020. Condo sales were down 82% while townhomes were down 69%.

The number of single-family home listings available on the market dropped 9% down to 1,173 but inventory on the condo market was up 33% compared to April 2019. Townhome units available decreased 19% down to 160 listings at the end of April 2020.

Vancouver Island (minus Victoria) board-wide benchmark prices for single-family homes were down 3% to $523,700 in April 2020 year over year. Condo benchmark prices, on the other hand, were up 5%, reaching $313,300. Townhomes were up 2% reaching $421,400.

There is much fear about the long term economic impact of Covid-19, with many consumers wondering how unemployment and decreased consumer spending will affect the Real Estate market. Meanwhile, with the expert economists at the BC Real Estate Association, the debate seems to be more about whether it will be a V-shaped or a U-shaped recovery. Meaning, will there be a sharp return to more normal volumes as pent up demand, decreased interest rates and many other factors drive a quick recovery, or will the recovery be more U shaped with slower returns to normal. The predictions from the economists at BCREA are that the market will have returned to normal by the 4th quarter of 2021 if not sooner. For those looking to dive deeper, I encourage you to check out BCREA’s stats presentation Here

Last month we predicted that this time would come to be known as “The Pause of 2020”. We are seeing clear evidence that this prediction is coming to fruition as we all accept, respect, adapt, and settle into a new normal. With the pent up demand, decreased inventory, lower interest rates, and a myriad of other factors, supply is currently outpacing demand resulting in a “Sellers Market” which following basic economic principles should result in rising prices. What we don't know is whether we will experience a short term surge from the pent up demand, or a longer-term upward pressure on the market. My personal prediction courtesy of my crystal ball is the latter, as following this period of isolation, I'm betting that more people will choose to make Vancouver Island their home.

If you are considering Buying or Selling, please click Here to Contact us for a FREE consultation. Ask us about featuring your home on www.VictoriaComingSoonListings.com to ensure the best results and we hit the ground running together as we get to the other side of this.

Thank you for your trust in us as we navigate these challenging circumstances together.

The Neal Estate Team
Your Victoria & Vancouver Island Real Estate Experts
“Go with those who know!”
www.RonNeal.com
www.HomesOnVancouverIsland.ca