The region posted its second consecutive month of sales deceleration, down from a 15-month peak in June
Seasonal trends and mounting caution over the Bank of Canada’s September 6 policy decision led to a marked deceleration in the Fraser Valley real estate market in August, according to the region’s housing industry association.
Data from the Fraser Valley Real Estate Board (FVREB) showed that a total of 1,273 home sales transpired in the region in August, a decrease of 6.9% compared to July despite being 25.2% higher on an annual basis.
The FVREB said that this represented the second straight month of deceleration, down from a 15-month peak in June.
“Many buyers are in ‘watchful waiting’ mode as they hold off on decisions in anticipation of potential further rate changes,” said Narinder Bains, chair of the FVREB.
The Canadian Real Estate Association (CREA) has downgraded its home sales forecast for this year and 2024 as higher interest rates bite and would-be buyers step to the sidelines.https://t.co/Hgiyj4Yyci#breakingnews #mortgageindustry #homesales #interestrates #realestate
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 14, 2023
More supply might enter the market in the near future
The number of new listings fell by 8.2% on a monthly basis to settle at 2,622 units. However, this was 28.2% higher than the levels seen in August last year, the FVREB said.
Additionally, active listings have been rising since December 2022, and went up again in August by 1.5% to reach 6,291 units. The FVREB said that this was just 7% lower than the 10-year average.
Benchmark prices in the Fraser Valley were generally steady in August, the FVREB reported. Single-family detached homes fetched an average of nearly $1.535 million (down by 0.6% monthly and up by 1.6% annually), while townhomes sold for an average of $846,200 (down by 0.5% monthly and up by 0.9% annually) and apartments commanded an average of $553,500 (down by 0.4% monthly and up by 2.5% annually).
“With prices relatively stable and active inventory on the rise, we hope to see more new listings come on stream over the next couple of months, especially if rates hold steady,” Bains said.
“We expect to see market activity pick up heading into the fall months,” added Baldev Gill, CEO of the FVREB.
