Inventory is a growing concern for the burgeoning market
Market activity in the Fraser Valley saw a slight moderation in July, although the region’s inventory of available homes reached its lowest for the month since 1981.
The region saw a total of 2,006 home sales in July, representing declines of 11% monthly and 4.5% annually, despite remaining approximately 15% above the 10-year July average.
“A summer slowdown is typical. We anticipated that once people could travel and enjoy family time safely, they would do so, and we couldn’t be happier for everyone,” said Larry Anderson, president of the Fraser Valley Real Estate Board.
“Demand for homes in our region, however, remains above average,” he added. “For 14 months we have been in a seller’s market for Fraser Valley detached homes, townhomes, and condos – and yet for the last four months, new listings in our region have been decreasing.”
Read more: BC to see substantial boost in housing supply
A total of 2,431 homes were newly listed last month, which was 22% lower than June and 31.5% lower than July 2020. Total active inventory stood at 4,901, which was 10.5% below June levels and 33% lower than July 2020.
“To put our market in perspective, we just came off the third highest sales for July in the last 10 years, while home buyers looking to invest in the Fraser Valley had the same level of inventory to choose from that they had 40 years ago,” said Baldev Gill, chief executive officer of the FVREB. “For the market to reach equilibrium and upward pressure on prices to decrease, we need more inventory.”
As for benchmark prices, the value of single-family detached housing grew by 30.9% year over year to around $1.319 million. Townhomes also increased in value by 22.3% annually to $688,400, and apartment prices rose by 13% during the same timeframe to reach $494,000.
