The market's conditions were a marked departure from the trends seen in the last few months
Monthly sales activity in the Fraser Valley failed to break historical records for the first time since September 2020, according to the region’s foremost real estate association.
The latest data from the Fraser Valley Real Estate Board showed that the market’s home sales in June totalled 2,247 transactions, which was 22% above the 10-year average for that month. However, this was 24% lower compared to May, despite being 31% above the region’s June 2020 sales levels.
“In June, we shifted from an extreme seller’s market to a strong seller’s market. Although demand for Fraser Valley homes remains very high – over 40% of active listings sold in June – we’re seeing the market settle down giving buyers and sellers more room to maneuver,” said Larry Anderson, president of the FVREB. “We’re now seeing more subject offers and, for the first time in months, we’re starting to see price reductions.”
Read more: How British Columbia’s housing demand is shaping up
In June, the region saw 3,108 new listings, declining by 21% from the previous month and by 10% compared to last year. Total active inventory stood at 5,474, shrinking by 7% from May and by 22.5% from June 2020.
Benchmark prices stood at approximately $1.324 million for single-family detached homes (up by 0.1% monthly and by 33.2% annually), at $678,400 for townhomes (up by 1.3% monthly and by 21.2% annually), and at $493,500 for apartments (up by 1% monthly and by 13.4% annually).
“A lack of supply continues to be the single largest factor affecting the market,” Anderson said. “Simply put, to meet current demand and get back to balance, we need about 3,500 more active listings in our region.”
The market is likely to see stronger sales in the next few months, amid the gradual economic restart and the steady return towards pre-pandemic business norms.
“Effective July 01, as part of Stage 3 of BC’s Restart Plan, realtors are again allowed to hold in-person showings and open houses while continuing to adhere to public safety recommendations,” said Baldev Gill, chief executive officer of the FVREB. “For more than a year, our industry has put tremendous effort into keeping the public safe and we will remain vigilant. We’d like to express our sincere appreciation to the public for your continued support and cooperation.”
