Mid April Market Update

I just want to share a quick update on what has been happening in the market since the beginning of April. My goal is to keep you as informed as possible as things are changing on a week-to-week basis.

We are starting to see an impact in regards to the number of transactions taking place, however home values are yet to be affected. So far, April 2020 has seen a 43% decrease in the number of new listings and a 57% decrease in sales, compared to April 2019.

One thing to keep in mind is buyers are still out there. In fact, I saw a detached home go into multiple offers this week which tells me that the real estate market has yet to come to a complete stand still.

In regards to home values, there are no indicating factors of a direct impact quite yet. This will be more or less determined on when and how fast businesses and the economy resumes.

Before social distancing was in effect, we saw signs of pent up demand in certain areas and balance in others, creating a healthy market.

If restrictions begin to slowly lift, I have full confidence that we will return to a fast paced late spring/ early summer market.

On the flip side if the restrictions remain strict and we find ourselves and our economy staying in this same position for the next few months, we may start to see a slight dip in home values due to low demand, high inventory and lack of buyer certainty. I wouldn't expect to see this until the end of the year, and I don't believe the market would ever completely crash but would suspect a slight correction.

The Vancouver and Fraser Valley markets are basically mirroring each other at the moment, so this data is relevant for both areas.

Thanks for reading and please reach out if you have any questions.