The VIREB Housing Statistics (April) clearly show the impact of the COVID-19 pandemic on our region’s market. (The Vancouver Island Real Estate Board (VIREB) represents over 1,000 REALTORS in nearly 90 brokerages from Tofino to the Malahat.) The sales of single-family homes dropped by 54% year over year. Last month, 189 single-family homes sold on the MLS system compared to 333 in March 2020 and 412 in April 2019. Apartment and townhouse sales decreased by 82% and 69% respectively.
Currently, the average sale prices in Nanaimo and surrounding area remain stable. This is great news, albeit, it is taking more time to sell homes. There are, however, some quick sales still occurring. This is evidence that homes offered for sale at the correct price, regardless of COVID-19, will always out perform overpriced home listings. It is exceedingly important now for sellers to listen to the advice of their REALTOR and to not overprice their home when offering it for sale. This is now more true because of British Columbia’s current economy, that has been so abruptly changed by the global pandemic.
Housing Market Projections
There are projections of price declines coming to Vancouver Island and Canada’s smaller real estate markets. The prices in Vancouver, Toronto and Montreal have already begun to decline. Typically; Canada’s largest metropolitans decline first. They often recover first too.
It is difficult to make any local real estate market projections at this time. There is an ongoing “recipe” that does suggest price declines are likely. However; there are fewer homes being offered for sale versus a typical year. This reduction of listing inventory might prevent home prices from declining. There is also currently a pent-up demand of buyers that are regaining confidence and beginning to venture further from their solitary confinement. The best advice that I can provide regarding listing your home for sale is to price it accordingly. Now is not the time to test the market with an over-priced listing.
Below is a graph of the national home sales 2007 to 2020:
National home sales fell 56.8% on a month-over-month basis in April.
Actual (not seasonally adjusted) activity was down a similar 57.6% year-over-year.
The number of newly listed properties decreased 55.7% from March to April.
Please click here for a detailed review of the Vancouver Island Real Estate Board’s (VIREB) market statistics.
Please do not hesitate to contact me if you wish to discuss the real estate market, the VIREB housing sales statistics or your home’s current value. I’m always happy to help!
Are there any real estate topics that you would like to review in a future blog? I would love to hear from you. Please include any comments below. Thank you.