June 2020 Market UpdateMay showers bring June flowers?
June has started in a cooler and wetter pattern than many of us sun seekers had hoped. The good news is the rain has not kept buyers from looking for new homes. Our market statistics for the month of May were much more promising than the conditions we experienced in April. Sales remain down (a total of 42% versus May of 2019) but our prices on average were up 5% for single family homes. The slowest segment of the market continues to be condominiums, with sales down 56% and prices down 10%.
Our inventory levels have increased, giving buyers more choice but remain below 2019 levels with inventory down 17%. The low levels of supply for buyers is helping to maintain prices; however in only 4 weeks we saw a swift increase in new listings coming on the market, 20% more choice than in April. We do caution that if the supply continues on the current trajectory we will see our prices affected.
Due to the uncertainty that Covid-19 may cause, CMHC has changed a few requirements for borrowers. The beacon score of one party of a mortgage must be 680 or higher and if a buyer is putting down less than 20% they have reduced their purchasing power by 11%. On a positive note, the other two insurers have yet to follow suit.
Please join us for our upcoming virtual events. Save the date for next Wednesday, Mark Price will be live on Facebook speaking about the new rules implemented by CMHC. The following week, Steve from Bug Master will speak about bugs in your home and the best way to keep them out!
If you have any questions about the real estate market our agents are always happy to help. Please call us anytime.