Real Estate Market Update in B.C. - October 2020
Another Record-Breaking Month for Real Estate Sales In October!
September has ended with extraordinary sales of 3,643 Units, and now, October 2020 Real Estate market results finalized with even more sales in the Greater Vancouver Area!
The sales momentum continued in October due to even lower Mortgage rates which made it possible for many families either to buy their first homes or buying bigger and better properties.
The COVID-19 period was another element to support the increase the sales as people are now spending more time at home and needing more space to work or to live in comfort.
The listings-to-sales ratio is over 20% level in all categories for many months now, which is a benchmark to record as a SELLER’s market for all categories.
*** Please find statistics in the cities of Metro Vancouver for all three categories down below the page!
Here some of the market performance figures:
UNIT SALES: 3,687 units sold. Even more sales than record-breaking September, This represents a 29% increase over the last year, 34% over the last 10 year’s October sales.
LISTINGS: Although the listings showed a 29% increase over the last year(with 5,571 new listings), it was quite less than the listings in September(almost 1000 less listings). `
MARKET PRICE INDEX: The market prices continued its positive momentum with 6% increase over the last year.
DETACHED HOMES: Unit sales were 1,335, a 42% increase in sales compared to last year. The benchmark price is $1,523,800, which is a 8.5% yearly increase over the last year.
TOWNHOMES: 45% more sales when compared to last year(782 unit sales). the benchmark price increased by 5.4% over the previous year
CONDOS: Unit sales increased by 36.9% over last year, with a total of 1,570 unit sales. The benchmark price increased by 4.4% over the previous year.
SALES-TO-LISTINGS RATIO: With strong sales and decreasing listing number, The sales to Listing ratio almost reached 30%, with an extraordinarily high ratio in Townhomes(reaching 43.5%) This ratio is one of the most significant indicators for where the market is going. You may see the percentages in the graph below for October 2020. The sales to active listing ratio are over 20% for the last five months now.
It is a SELLER’s MARKET for all categories.
Market Trend (Where will the prices go?)
We are in a seller’s market where the unit sales reached a record high level. Although all the categories showed an increase, detached and townhomes’ sales trend was stronger. This shows that families are buying bigger houses.
This came as a trend after people spent even more time in their homes due to COVID-19 limitations. Now, more people are working from home, and many people needed separate rooms as a working space. This created a motive to shop for a bigger and more comfortable property.
The low mortgage rates are also helping to boost demand. It is currently possible to find rates of 1.7% to 1.9% for 5-year fixed-term mortgages (Please contact us for the best market rates, as the market in strong fluctuation these days).
Although it is not possible to make accurate projections due to COVID-19, when we check the last months’ figures, we can see no sign of slowing down in the real estate market.
Yearly price increases are at a 6% level in almost all categories. Buyers are looking for opportunities in the market and making use of the current interest rates.
Overall, we can expect a hot market to continue unless we get negative news from the COVID-19 side.
We are here to Help!
The market’s response to the current pandemic and the economic outlook will be critical to predicting the trend. Therefore, we advise you to get in touch with our experts and follow up with the market trends more closely with our realtors’ help.
Feel free to call us anytime to get the expert’s advice (604.202.2929)
JOVI offices are open and operational during this period. We follow a list of precautions being exercised in our offices for our agents’ and clients’ health and safety. Please CONTACT JOVI AGENTS for details.
Read the original article from Jovi Realty here: https://jovirealty.com/real-estate-market-update-october-2020/