Housing Market Rebounds In July | Dave Koszegi Group
by Dave Koszegi
on Wednesday, July 8th, 2020 at 10:14am.
The COVID-19 effect on VIREB’s housing market seemingly wore off in June, with sales rebounding significantly from May and posting year-over-year increases in most markets. Last month, 479 single-family homes sold on the Multiple Listing Service® (MLS®) System compared to 246 in May 2020 and 406 one year ago.
Sales of apartments increased by three per cent year over year but were 59 per cent higher than in May. Townhouse sales rose by three per cent year over year and were up by 118 per cent from May 2020. Inventory of single-family homes last month dipped by 23 per cent year over year (1,598 to 1,224). Active listings of apartments rose by 22 per cent (353 to 431) year over year, while townhouse inventory dipped by three per cent (189 to 183).
“We’re cautiously optimistic that the housing market is bouncing back more quickly than expected,” says VIREB president Kevin Reid. “Pent-up demand and low-interest rates undoubtedly account for part of the surge, so we’ll have to wait and see whether the recovery continues.”
The benchmark price of a single-family home board-wide was $534,800 in June, an increase of four percent from the previous year and one percent higher than in May. (Benchmark pricing tracks the value of a typical home in the reported area.) In the apartment category, the year-over-year benchmark price rose by three percent, hitting $312,600 and down two percent from May. The benchmark price of a townhouse in June rose by two percent year over year, climbing to $419,700 but down around one percent from May.
In Campbell River, the benchmark price of a single-family home last month was $449,200, an increase of three percent over last year. In the Comox Valley, the benchmark price reached $552,200, up by six percent from one year ago. Duncan reported a benchmark price of $486,400, an increase of three percent from June 2019. Nanaimo’s benchmark price rose by three percent to $576,000 in June, while the Parksville-Qualicum area saw its benchmark price increase by around one percent to $597,800. The cost of a benchmark single-family home in Port Alberni reached $337,000 in June, a seven percent increase from one year ago.
Since real estate was designated an essential service, transactions continued since the beginning of the pandemic. However, the priority of the real estate industry has been public health and safety. “REALTORS® adapted quickly to the altered real estate landscape by embracing virtual tours and live streaming open houses, which allowed clients to initiate and complete real estate transactions safely,” says Reid. “When in-person viewings are necessary to finalize a sale, REALTORS® adhere to the stringent safety protocols required by WorkSafeBC to ensure we protect the public.”
We continue to keep informed about everything happening in our industry and it’s our mission to provide you with any information you may need about buying or selling during this time. We’re all in this together - and we’re here for you. Contact us today with your questions.