Coronavirus delivers a blow to home sales, but not prices

B.C. home sales dropped more than 45 per cent in May compared with the same time last year but home prices continue to rise, according to a monthly report from the B.C. Real Estate Association (BCREA).

BCREA says the average residential sales price in May was $728,898, which was a 3.2 per cent increase from the $706,394 average price recorded in May 2019.

In Greater Vancouver, the average sales price was up 2.9 per cent ($1.012 million to $1.041 million) compared with the same time last year, while Fraser Valley home prices climbed 2.6 per cent ($725,292 to $744,322).

Vancouver Island had the biggest price jump with a 9.5 per cent rise over May 2019 ($494,380 to $541,485), while the largest drop was recorded in Powell River, where home prices plummeted 19.4 per cent ($366,933 to $295,748).

There were 4,518 provincial home sales recorded in May, compared with 8,244 sales in May of 2019, illustrating the impact the pandemic has had on B.C. real estate activity.

BCREA says the total residential sales dollar volume reached $3.3 billion in May, down 43.5 per cent from last year. Despite the huge year-over-year sales drop, the Canadian Real Estate Association (CREA) says national home sales and new listings were still up significantly from April.

“Home sales recorded over Canadian MLS systems rebounded by a record 56.9 per cent in May 2020; although, that is as a percentage of the weakest month of April on record,” CREA said in a statement.

CREA says May home sales jumped 31.5 per cent in Greater Vancouver and 20.6 per cent in the Fraser Valley compared with April numbers.