April has come and gone and for many of us it was a month of sitting idle, waiting for the virus to move aside so we all can get back to normal. Having said that, the signs are becoming
Does COVID-19 affect the Fraser Valley real estate market?
April has come and gone and for many of us it was a month of sitting idle, waiting for the virus to move aside so we all can get back to normal. Having said that, the signs are becoming clearer when looking at last month's statistics within the Lower Mainland/Fraser Valley.
Sales activity has decreased tremendously. New listings have also been scarce, which in turn lead to stable prices for now. Overall the Fraser Valley Real Estate Board reported a 50% drop in sales year over year, however, this number represents a 63% drop compared to the 10 year average for the month of April. Technically we haven't seen levels of sales this low since the early 1980's.
As mentioned before, prices are holding stable due to the limited amount of supply in form of new listings. We only listed homes at a pace similar to April of 1981. As of the end of April we only have 5997 active listings to choose from.
The Chilliwack Real Estate Board is reporting similar percentages for the month of April. Even though we are not seeing a huge increase in listings, the sales to active ratio for Chilliwack decreased to 16.9%, a number representing the start of a buyer's market. With a little more supply, this depressed demand scenario could topple our market into full on buyer's markets, not seen since the financial crisis.
It's not all bad though. There is a limited number of buyers out there, who still have to buy for various reasons and well situated properties offering good value, are still being scooped up in no time. We also are looking at increasing hope, that this shutdown may be over soon, so this gives us reason to believe, that more sellers and buyers will flock to the markets as the situation normalizes.
Do you have questions or concerns regarding the real estate market? Please feel free to call, text or email us. We are here to help you with any and all of your Fraser Valley real estate needs.
Frank and Sherry Heitzer are partners in business and in life. While Frank was born and raised in Regensburg, Germany, Sherry was born and raised in Langley, BC. Both of them started their working liv....