The Neal Estate Team's Victoria Real Estate Update for June 2020

Following significant declines in sales activity beginning in mid-March, sales activity has been on the increase since mid-April. The pent up demand became apparent in the Victoria Real Estate Market as total sales volume increased by 59.2% in May 2020 from April. Still well below normal levels, there were only 457 properties sold in May, 46.1% less than the same month the previous year. As the Realtors find ways to provide services safely and the public feel increasingly comfortable to venture out, sales activity is returning to a new normal. There were 254 single family units sold and 108 condo units (down 55.7% and 42.9% respectively from the previous year).

While board-wide sales were down, our The Neal Estate Team sales partners outpaced the market thanks to our Coming Soon Program and increased our sales volume over May 2019. With almost 1,400 Realtors in Victoria our team sold more than 1 in every 33 homes sold in May, 3.7% of all Victoria area sales for the month!

The number of listings available for sale is increasing as expected, but still in relatively short supply, especially under a million. Inventory at the end of May was lower than the previous year (15.7% lower to be exact), but 10.4 up from April with 2,544 available listings on the multiple listing service.

The housing market is still subject to uncertainty with many worried about the impact of unemployment numbers as people start to hit their maximum time they can claim government assistance programs (Canadain Emergency Response Benefit has a 16-week maximum) and may be looking at moving forward without an income. Chief Economist, Brandon Ogmunson with the BC Real Estate Association counters this uncertainty in the market, commenting that most of the job losses have been in the lower income levels and will have more effect on the rental market. Furthermore, CMHC just announced new rules coming into effect July 1, 2020 that will have a profound impact for buyers with less than 20% down payment reducing their purchasing power by more than 10%. This will likely reduce the competition in the lower end when it takes effect.

Benchmark (Home Price Index) value for single-family homes increased 2.6% to $885,400 from May 2019, creeping up 0.1% from April. The benchmark prices for condos crept up the same 0.1% from April but rose more compared to the previous year, rising 3.5% to $534,300.

No one can 100% predict the future (despite our crystal ball) but the commonality in projections and modeling from economists predict any downward momentum to correct in the fourth quarter and for the market to return to its normal state in 12 months. It could be much faster than that and we will have a much clearer picture in the next couple of months.

If you would like to know how we are beating the market and helping our clients win, please click Here for a FREE consultation. Ask us about featuring your home on VictoriaComingSoonListings.com to ensure the best results and we hit the ground running together as we get to the other side of this.

Stay safe,

The Neal Estate Team

Your Victoria & Vancouver Island Real Estate Experts

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