May 2020 Market Update
Posted by Capital City Group on
As expected, sales are down in real estate for the month of April as they are in most sectors. The effects of COVID-19 continue to be felt across society, and real estate is no different.
Having said that – We are open for business. In March Real Estate Agents were declared an Essential Service, and we are here to help. We do not take this responsibility lightly, but the reality is that some people have to buy or sell. We have counselled many of our clients to hold off if they can, but if you have to buy or sell, we have a full set of COVID-19 protocols in place to protect you and get you the best results.
Is it a good time? The inventory levels have stayed low throughout this pandemic as people who are not needing to sell are sitting in the sidelines, which is keeping options low for people who need to buy. And so, we are seeing multiple offers and bidding wars.
On the other side of the coin we are seeing people who have to sell listing their places; and if they don't trigger that bidding war, if they've over priced, then they are sitting with very few if any showings, creating buying opportunities.
There is very little NEED to sell, so although there will be the odd deal, the odd anomaly in the market, for the most part it has been placed in an induced coma. As such, we expect prices to hold for the most part. Now when the restrictions lift, and the sense of euphoria washes over people as they embrace their friends, restaurants families and hairdressers again, there is also going to be pent-up demand and pressure on the real estate market. There will likely be a flurry of activity which, as we all know, is going to drive prices up.
We are available for Zoom chats, phone calls, and of course social distanced physical showings. We have done great as a society in clamping down and flattening the curve here. The province is talking about easing restrictions. Contact us to find out how we can get ahead of this and make it work for you.
There are 2305 active listings, about 16% fewer year-over-year, and 2.4% higher than March 2020. Sales on the other hand dropped significantly, almost 59% year-over-year, and almost 53% over March 2020, as expected. Giving us our first Buyer's Market in a looooooong time based on the stats. The sales-to-active listings ratio was 12.5%, just under the 14% balanced market threshold.
Stay safe, stay healthy, stay at home.