Real estate trends and statistics for Vancouver Island
While we entered the first part of 2020 in a generally stabilizing trend, the economic shutdown since the middle of March due to the coronavirus pandemic has had a significant impact on housing sales throughout the province. Nonetheless, realtors, like so many other service providers, are adapting to support clients during these unprecedented times.
Following are some local and provincial statistics for April, adjustments that have been made in the real estate sector as well as projections for the future.
Where things stand on the Island and Comox Valley markets
The reality of the pandemic hit home in terms of housing sales in April throughout the province. As noted in the Vancouver Island Real Estate Board (VIREB) May release, Island sales of single-family homes dropped by 54 per cent compared to last year’s figures. Inventory has dropped significantly for houses and townhouses and active listings for apartments increased by more than 30 per cent.
In terms of benchmark pricing, April saw single-family homes drop three per cent for the Island average compared to last year to land at $523,700, which was actually marginally higher than in March. Interestingly, in the Comox Valley the benchmark price reached $521,300, which is up by two per cent compared to last year. Nanaimo and Parksville-Qualicum also saw 2 per cent increases from 2019.
How the real estate sector is adapting to COVID-19
In March, the provincial government designated real estate as an essential service. Since that time, all realtors have been working hard to ensure they follow health and safety directives laid out by the province’s health officer. Technology has allowed for adaptations to be made as we all work to flatten the curve through social distancing and respond to the ever-evolving “new normal.” Virtual open houses, electronic files and more allow us to continue assisting clients.
“Being declared an essential service recognizes that many British Columbians are currently involved in real estate transactions that began before the pandemic was declared or may need to be involved in one in the coming weeks and months,” says 2020 VIREB president Kevin Reid. “However, our priority is public health. Real estate transactions can continue as long as everyone involved is protected.”
For detailed information on how I, personally, am working with sellers and buyers to keep everyone healthy and safe, click on this link: https://leahreichelt.com/COVID-19.html.
Projections for the future
The British Columbia Real Estate Association (BCREA) predicts the 2020 coronavirus-driven recession will be profound but that its duration may be shorter than past downturns. While social distancing has proven to make a huge difference in slowing the spread of the virus, it has resulted in declines in the real estate sector. However, as restrictions gradually ease and measures are lifted, BCREA anticipates low interest rates and pent-up demand will translate to a significant recovery in home sales and prices.
My assistant Jean and I sincerely hope that you and your families stay healthy and strong during these challenging times. Things will get better. By working together to support one another, we will get through this.
Please feel free to contact me any time through my website or by visiting my Facebook page should you have any questions about the current situation or Comox Valley real estate in general. Take good care.