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An Update On The BC Tenant Protection Changes

On March 25, 2020, the BC government announced that renters would not be evicted if they could not pay rent due to the COVID-19 crisis. It also introduced a Temporary Rental Supplement (TRS) to help renters pay their rent. 

Last month, it partially lifted the ban on residential rental evictions, but maintained the moratorium on rent increases and evictions for non-payment of rent. 

The government has also extended the TRS program that was supposed to end in June, to the end of August. The rental supplements of $300-$500 are paid directly to the landlords. 

Between April 9, 2020 and June 15, 2020,  BC Housing received more than 90.000 applications for the temporary rent supplement, and nearly 82,500 eligible applications were confirmed. 

On July 2, 2020, the following tenancy laws came into effect:  

A landlord can now issue a Notice to End Tenancy for any reason (other than unpaid or late payment rent). Landlords with existing orders for eviction can now take them to the courts for enforcement and can enforce a writ order effective immediately. Landlords can enter a rental suite with 24 hours notice and do not need the tenant’s consent. They are expected to follow health guidelines like physical distancing, cleaning and wearing masks when appropriate. 

The change also allows for personal service of documents to resume, rather than via email. The landlords’ ability to restrict access to common spaces for COVID-19 related health reasons remains. 

A tenant who has not paid rent could face eviction once the state of emergency is over. 

If you require more information regarding this issue or any other developments that have taken place recently, please contact us or call us on 604 913 1000. Our real estate professional advisors will be only too pleased to be of assistance. 

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REBGV Market Update For May 2020 – Home Sales Down, But The Future Looks Optimistic.

Buyers and sellers are getting used to the new normal, and this is reflected in the May 2020 market report released by the Real Estate Board of Greater Vancouver (REBGV). 

Although sales still lag, they are down 44%, they did rise sharply from April 2020 and prices are up slightly from May 2019. 

According to Colette Gerber, REBGV Chair, “Home prices have been stable during the COVID-19 period. While we’re seeing a variety of long-term projections for the market, it’s critical to understand the facts and trends as they emerge.” 

She added that “Home sale and listing activity is down compared to typical, long-term levels and up compared to the activity we saw in April 2020. Home buyers and sellers are adapting today, becoming more comfortable operating with the physical distancing requirements that are in place in the market.” 

Home Sales 

Realtors registered only 1,485 residential property sales in May 2020 for the region. This represented a 43.7% decline from the same period last year in which 2,638 sales were recorded, and an increase of 33.9% from April 2020 when 1,109 homes were sold.  

The number of detached properties sold was 534, 41.5% less than May 2019 (913 sales). 

The number of apartments sold was 653, 47.6% less than May 2019 (1,246 sales). 

The number of attached properties sold was 298, 37.8% less than May 2019 (479 sales). 

Home Listings 

May saw 3,684 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This was a 37.1% decrease compared to the 5,861 homes listed in May 2019, and a 59.3% increase compared to April 2020 when 2,313 homes were listed. 

“Home buyers and sellers are working with their REALTORS® to use new tools to complete different stages of the real estate transaction virtually,” Gerber said. “When in-person interactions are necessary, we’re working with our clients to follow the physical distancing requirements set out by WorkSafe BC and the provincial health officer.” 

Sales-To-Active-Listings Ratio 

This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods. 

For all property types, the ratio in May 2020 was 15%. When broken down by property types, the ratio was: 

  • 13.3% for detached homes  – moving into seller market territory 
  • 18.9 % for townhomes  – in seller market territory 
  • 14.8% for condominiums – in seller market territory 

Home Prices 

For the month of May 2020, The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,028,400. This was virtually unchanged from April 2020 and a 2.9% increase when compared to May 2019. 

The real estate landscape in Vancouver is changing. If you are buying or selling a home, you need to get in touch with an experienced real estate company such as ours to navigate this market during these unheard of times. Contact us by email or call us on 604 913 1000. 

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REBGV Market Update For April 2020 – April Home Sales In Metro Vancouver Lowest Since 1982.

Last month life as we knew it, ground to a halt because of COVID-19, and so did Metro Vancouver’s real estate market. This was reflected in The April 2020 market report released by the Real Estate Board of Greater Vancouver (REBGV).

“Predictably, the number of home sales and listings declined in April given the physical distancing measures in place. People are, however, adapting. They’re working with their realtors to get information, advice, and to explore their options so they’re best positioned in the market during and after this pandemic,” said Colette Gerber, REBGV president-elect.

She added, “We’re seeing more innovation in today’s market, with realtors using different technology to showcase homes virtually, assess neighborhood amenities with their clients and handle paperwork electronically.”

Home Sales

April 2020 sales were 62.7% below the 10 year April average and were the lowest total for the month since 1982.

There were 1,109 residential property sales. This represented a 39.4% decrease from the 1,829 sales in April 2019 and a decrease of 56.1% from March 2020 when 2,524 homes were sold.

The number of detached properties sold was 388, 33.8% less than April 2019.

The number of apartments sold was 503, 43.2% less than April 2019.

The number of attached properties sold was 218, 39.1% less than April 2019.

Home Listings

April saw a plunge in new home listings. There were only 2,313 newly listed properties for sale on the Multiple Listing Service (MLS) in Metro Vancouver. This was 59.7% lower than the 5,742 new homes listed in April 2019, and a 47.9% decrease when compared to March 2020 when 4,436 homes were listed.

The total number of homes listed for sale in April decreased to 9,389 – a figure well below the inventory of April 2019 when 14,357 homes were listed and a 2.3% decrease compared to the 9,606 homes listed in March 2020.

Sales-To-Active-Listings Ratio

This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.

For all property types, the ratio in April was 11.8%. When broken down by property types, the ratio was:

  • 10% for detached homes
  • 14.7% for townhomes
  • 12.4% for condos

Home Prices

The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,036,000 in April. This was 2.5% higher than April 2019 and 0.2% higher than March 2020. Despite ongoing concerns about the economy and millions of Canadians out of work, the average price of a home in Vancouver went up. 

Paul Kershaw, UBC professor and founder of Generation Squeeze, says the rising prices, as sales fall is worrisome. 

“During the COVID-19 pandemic, our entire economy has been upended, our housing system has been hit with a massive shock, and no one knows where all of this will go,” he said.

Click here for a full report.

Working with our real estate professionals will enable you to set realistic expectations that help you achieve your real estate goals. If you are looking to buy or sell a home, contact us by email or call us on 604 913 1000.

 

 

 

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REGBV Report April 2019 – The Trend of Reduced Demand And Increased Supply Still Prevails In The Market.

The latest Real Estate Board of Greater Vancouver (REGBV) report on the April 2019 real estate market, shows that buyers are reluctant to get into the market and sellers are being forced to be creative. Product that is staying on the market for more than a month is seeing discounts that were unheard of 2 years ago. For a decade it has been a sellers market. This has changed.

Residential property sales totalled 1,829 in April 2019, a 29.1% decrease from the 1,829 sales recorded in April 2018 and a 5.9% increase from the 1,727 homes sold in March 2019.

“Government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20 per cent, which is causing people at the entry-level side of the market to struggle to secure financing.. Suppressing housing activity through government policy not only reduces home sales, it harms the job market, economic growth and creates pent-up demand.” Ashley Smith the REBGV President said. She added,” “There are more homes for sale in our market today than we’ve seen since October 2014. This trend is more about reduced demand than increased supply. The number of new listings coming on the market each month is consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”

The total number of properties listed on MLS system in Metro Vancouver in April was 14,357  – a 46.2% increase compared to the 9,822 properties listed in April 2018, and a 12.4% increase compared to the 12,744 properties listed in March 2019.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,008,400. This represents an 8.5 per cent decrease over April 2018, and a 0.3 per cent decrease compared to March 2019.

The all-important sales-to-active listings ratio for April 2019 was 12.7%. The general rule of thumb is that there is downward pressure on home prices when the ratio dips below 12%, and upward pressure on home prices when the ratio surpasses 20% over several months.

April 2019 Sales Stats:

Detached properties                       586                  (807 – April 2018)

Apartments                              885                  (1,308 – April 2018)

Attached properties                        358                  (464 – April 2018)

Click here to obtain a full report.

In these market conditions, you need to work with a real estate company that has the experience and know how on getting you the right home. Contact us and let one of our real estate professionals obtain the best results for you.

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