Fraser Valley property sales have dropped for the third month straight, being down nearly 60 per cent from March, according to the Fraser Valley Real Estate Board’s (FVREB) June-numbers report.
Sales last month totalled 1,281, dropping 5.8 per cent from May, adding to a 54 per cent downturn over the previous two months. June sales are down 43 per cent from last year.
There has been a “softening of demand” for single-family homes, though it continues to be a sellers market for condos and townhomes due to sales-to-listing ratios, according to Sandra Benz, president of the FVREB.
“It’s likely that we will see further softening in these property types as we return to pre-COVID work-life routines,” Benz said. “In just two months our market overall has shifted into balance.”
A total of 3,332 new listings were received by the FVREB in June, an increase of 8.2 per cent compared to last month, and a 7.2 per cent increase from June, 2021.
Active inventory at the end of the month was at 6,474, a 4.7 per cent increase compared to May, and an 18.3 per cent compared to June, 2021.
Property values have slightly decreased – single family homes are down around five per cent over the last two months.
FVREB CEO Baldev Gill noted that prices are still more than 20 per cent higher than last year.
“With five-year fixed rates at their highest levels in a decade and residential prices, though softening month-over-month … we expect to see sales continue to decline over the near term,” Gill said.
“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.”
It took an average of 21 days to sell a single family home in June, 19 days for a townhome, and 17 days for an apartment.
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.