The Fraser Valley housing market begins to cool, experiencing slower sales yet softer prices…
As sales dropped in the Fraser Valley, June was the third straight month as prices for all property types continued to soften bringing greater balance to the market!
Overall sales processed by the FVREB were 1,281 on MLS, of which we can see a 5.8% decrease compared to last month and a 43% decrease compared to June of last year.
Sandra Benz, President of the Board, said, “In just two months our market overall has shifted into balance mainly due to a softening of demand for single-family detached homes. The condo and townhome markets, although they have moderated, they continue to favour sellers as the sales-to-active listings ratios continue to trend higher, however with fewer multiple offer situations compared to previous months, it’s likely that we will see further softening in these property types as we return to pre-COVID work-life routines.”
As for inventory, last month the Board received 3,332 new listings which is a 7.2% increase compared to last year, and a 8.2% decrease compared to last month. The month ended with a total active inventory of 6,474, a 4.7 per cent increase compared to May, and 18.3 per cent more than June 2021.
Baldev Gill, Chief Executive Officer of the Board, added, “With five-year fixed rates at their highest levels in a decade and residential prices, though softening month-over-month, are still more than 20 per cent higher than a year ago, we expect to see sales continue to decline over the near term. The combination of higher rates and low inventory will present a barrier to first-time buyers and could result in even slower sales over the coming months and erase price gains from the past 10 months or so.”
Across Fraser Valley, in June, the average number of days to sell a single-family detached home was 21, a townhome was 19 days, and apartments 17 days.
MLS® HPI Benchmark Price Activity
- Single Family Detached: At $1,653,000, the Benchmark price for an FVREB single-family detached home decreased 3.5 per cent compared to May 2022 and increased 21.9 per cent compared to June 2021.
- Townhomes: At $894,300, the Benchmark price for an FVREB townhome decreased 2.7 per cent compared to May 2022 and increased 26.6 per cent compared to June 2021.
- Apartments: At $568,700, the Benchmark price for an FVREB apartment/condo decreased 2.2 per cent compared to May 2022 and increased 25.9 per cent compared to June 2021.
Resource: The Fraser Valley Real Estate Board