The market slowed down significantly on a monthly basis despite robust annual increases
After five consecutive months of increases, home sales activity in the Fraser Valley dropped in response to a combination of rising interest rates and summer sales trends, according to the Fraser Valley Real Estate Board.
The region saw a total of 1,368 residential transactions in July, representing a 29.3% monthly decline despite a still robust 37.8% annual increase.
“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 FVREB. “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.”
A total of 2,855 residential units were newly listed in July, falling by 16.6% monthly but remaining 19.7% higher than July 2022 levels. FVREB said that this level was “virtually on par” with the ten-year average for the month.
Active listings went up by 4.3% monthly, pushing Fraser Valley’s total inventory up to 6,199 units.
A coalition of organizations involved in the housing market has called on the British Columbian government to establish a permanent housing expert group that will address the ongoing crisis, according to the BC Real Estate Association (BCREA).https://t.co/SVOP3vU0Du
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 21, 2023
On average, Fraser Valley detached homes spent 22 days on the market before selling, while townhomes and apartments moved a bit more quickly at 16 and 18 days, respectively.
Fraser Valley home prices remain stable
The region’s residential prices saw negligible monthly increases, FVREB said. Benchmark sales prices stood at a little over $1.543 million for single-family detached homes (up by 1.1% monthly and down by 3.1% annually), at roughly $850,300 for townhomes (up by 0.6% monthly and down by 2.7% annually), and at $555,500 for apartment condos (up by 0.6% monthly and up by 0.8% annually).
“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.
