Home prices begin to soften as the Fraser Valley housing market cools, experiencing lower sales and higher inventory…
Sales of all property sales continue to fall in the Fraser Valley and active listings continue to grow, the region is heading towards more balanced levels not seen since the pre-pandemic!
Sales of all property types in May were 1,360, down 16.9 per cent from last month.
At the end of May, active listings were at 6,183 of which we see an increase of 14.8 per cent compared to April 2022.
In May, the ratio for Fraser Valley all property types combined was 22 per cent, comparable to pre-pandemic conditions in early 2020. By comparison, during the pandemic, the ratio peaked at 92 per cent, indicating a strong seller’s market.
Sandra Benz, President of the Board, said “Since March, we’ve seen sales come down with an accompanying increase in inventory, subsequently restoring much-needed balance and cooling our heated market, while still early, it suggests that as we gradually settle into a post-pandemic state of work and life, the big pandemic-era drivers – working from home and record low interest rates – may have run their course.”
Baldev Gill, FVREB CEO said, “The softening of prices will be welcome news for homebuyers, especially in the face of rising mortgage rates, the volatility we’ve witnessed over the past couple of years not only underscores the power of external events to affect the market but, in light of recent trends, the ability of the market itself, to adapt and trigger corrective mechanisms.”
In May, MLS® HPI Benchmark prices for all three main property types decreased month-over-month for the first time since September 2019.
MLS® HPI Benchmark Price Activity*
- Single Family Detached: At $1,712,500, the Benchmark price for an FVREB single-family detached home decreased 2.4 per cent compared to April 2022 and increased 26.2 per cent compared to May 2021.
- Townhomes: At $918,900, the Benchmark price for an FVREB townhome decreased 1.4 per cent compared to April 2022 and increased 31.3 per cent compared to May 2021.
- Apartments: At $581,400 the Benchmark price for an FVREB apartment/condo decreased 1.1 per cent compared to April 2022 and increased 30.0 per cent compared to May 2021.
Resource: The Fraser Valley Real Estate Board