Seasonality, interest rates
temper sales in the
Fraser Valley
After five months of
successive increases, real estate sales in the Fraser Valley dropped in
response to a combination of continued rising interest rates and the summer
sales cycle.
The Fraser Valley Real
Estate Board processed 1,368 sales in July on its Multiple Listing Service®
(MLS®), a decrease of 29.3 per cent below June, but still 37.8 per cent
above July 2022.
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July new listings, at
2,855, were also down by 16.6 per cent compared to last month but 19.7
per cent higher than July 2022 levels, and virtually on par with the
ten-year average. Active listings continued to climb, increasing by 4.3
per cent over June, bringing the total inventory available for sale in
the region to 6,199.
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“Summer is typically a
slower period for the real estate sector and the higher interest rates
are contributing to the market slowdown,” said Narinder Bains, Chair of
the Fraser Valley Real Estate Board. “We’re seeing less traffic and fewer
multiple offers as buyers and sellers put a pause on decisions and we
expect this trend to continue until the fall cycle.”
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The market for
detached homes softened in July with a sales-to-active listings ratio of
17 per cent while demand for townhomes and apartments remained firm at 45
per cent and 36 per cent respectively. The market is considered balanced
when the sales-to-active-listing ratio is between 12 per cent and 20 per
cent.
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Prices across all
categories saw negligible increases compared to last month (see below).
“With rates at their
highest levels in over 20 years and inflation still elevated, buyers and
sellers are taking time to reevaluate their objectives,” said FVREB CEO
Baldev Gill. “As housing options begin to take center stage on the
Provincial agenda, consumers will want to consult a professional REALTOR®
for a detailed picture of the market in their communities and to stay up
to date on upcoming changes that may impact their decisions.”
On average, properties
spent two to three weeks on the market before selling, with detached
homes spending 22 days on the market, and townhomes and apartments moving
slightly more quickly at 16 and 18 days, respectively.
MLS® HPI Benchmark Price Activity
- Single Family Detached: At $1,543,300 the
Benchmark price for an FVREB single-family detached
home increased 1.1 per cent compared to June 2023 and decreased 3.1
per cent compared to July 2022.
- Townhomes: At $850,300, the
Benchmark price for an FVREB townhome increased 0.6 per
cent compared to June 2023 and decreased 2.7 per cent compared to
July 2022.
- Apartments: At $555,500, the
Benchmark price for an FVREB apartment/condo increased
0.6 per cent compared to June 2023 and increased 0.8 per cent
compared to July 2022.
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For the FULL STATISTICS PACKAGE click HERE |
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