Hi everyone, its Razaik Cheema here with the real estate market update for April 2020 for Surrey, Cloverdale, Langley & the rest of Fraser Valley. I hope everyone is doing well and staying safe these days.
Everyone has the same question. What is happening to the real estate market? And how has it been impacted by COVID today? Is it a buyers market or is it a sellers market?
To help us determine what kind of market it is we will use the sales to active listing ratio. This ratio is a percentage of available listings on the market that had sold. For example, if the ratio is 23%, that means out of a hundred homes, 23 homes are selling.
Now, how does this impact a buyer and a seller? A seller's market is when the ratio is over 20%. That shows there is strong demand as more homes are selling than there are homes available. A buyer's market is when the ratio is below 12%, which means there are more homes for sale than there are buyers.
A balanced market is between 12 to 20%, which shows the supply of homes are meeting the buyers demand.
In February & March for Fraser Valley we were at 24%, which is just above the threshold of a balanced real estate market. This means for every hundred homes, 24 homes are selling. In April, the ratio was 11.47% as it was the first whole month impacted by COVID. Here we are just below the other side of the balanced market threshold.
So how does it affect us? Although a number of sales have dropped in April, prices have in fact stayed firm. There are still buyers and sellers in the market.
Thank you so much for watching. If you have any questions, please feel free to reach out to us. We are happy to answer any questions you may have also look for our next video in which we will talk about the process to sell a home during COVID with new technology while practicing the health and safety measures that are necessary. Stay safe!