As we all pull together, adapting, taking extra necessary steps to keep each other safe, having successfully flattened the curve, we are seeing an emerging “new normal” with our personal and professional lives. Although deemed an essential service, the Pandemic certainly impacted the real estate industry and the “spring market” here in Victoria.
The Victoria Real Estate Board experienced an expected drop in new firm sales reported for April 2020 to the tune of 58.8% compared to the same month last year with 287 total sales. Condo sales were down 64% with 73 sales in the same year over year comparison and single-family homes were down 55.8%. These numbers exceeded our prediction of as much as 70% or more decline as we all worked together to keep people safe and make things work!
While listings, showings and sales were down in April, the first week of May saw nearly double the number of confirmed physically present showings in our office compared to the last week of April (also surpassing April 2019’s showings numbers). In short, as precautions and protocols are implemented, people are increasingly feeling safe. They are venturing back out and we are getting busier by the day!
There is clearly pent up demand from buyers who want to buy, while there is also a shortage of listings. The 2,305 active listings available at the end of April 2020 was down 16.2% compared to April 2019 despite the significant drop in sales. Available listings crept up 2.4% only compared to March 2020, far lower than our typical seasonal increase.
In the Victoria Core, benchmark single-family home values (based on the Home Price Index) increased 4.6% compared to April last year and rose slightly from March this year to hit $882,700. Benchmark condo prices, on the other hand, were up 3.5% year over year and .02% from March to reach $531,900.
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 Victoria 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 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!”
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The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.