A combination of seasonal trends and cautious anticipation of the next rate announcement saw the Fraser Valley real estate market slow in August as sales fell slightly for the second month, after reaching a 15-month high in June.
The Fraser Valley Real Estate Board recorded 1,273 sales on its Multiple Listing Service (MLS®) in August 2023, a decrease of 6.9 percent compared to July. Sales were up 25.2 percent compared to August 2022.
New listings dropped to 2,622 in August, a decrease of 8.2 percent over last month, but 28.2 percent above this time last year. Active listings have been rising since last December and grew again in August by 1.5 percent to 6,291, just 7 percent off the ten-year average.
“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 Fraser Valley Real Estate Board. “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.”
With a sales-to-active-listings ratio of 16 percent, the market for detached homes was balanced between supply and demand. Demand for townhomes and apartments remained stronger (38 percent and 32 percent, respectively). The market is considered balanced when the sales-to-active-listings ratio is between 12 percent and 20 percent.
Benchmark prices in the Fraser Valley remained relatively unchanged compared to last month with gains of less than one percent across all property types.
“We expect to see market activity pick up heading into the fall months,” said FVREB CEO, Baldev Gill. “That said, with the uncertainty surrounding interest rates as well as the potential impact of provincial housing strategy initiatives, buyers and sellers would be well-advised to consult with a professional REALTOR® to assess any risks and opportunities before making a decision.
On average properties spent between two and four weeks on the market before selling, with townhomes and apartments moving faster (16 and 20 days, respectively) than detached homes (25 days).
MLS® HPI Benchmark Price Activity
Single Family Detached: At $1,534,500, the Benchmark price for an FVREB single-family detached home decreased by 0.6 percent compared to July 2023 and increased by 1.6 percent compared to August 2022.
Townhomes: At $846,200, the Benchmark price for an FVREB townhome decreased 0.5 percent compared to July 2023 and increased 0.9 percent compared to August 2022.
Apartments: At $553,500, the Benchmark price for an FVREB apartment/condo decreased 0.4 percent compared to July 2023 and increased 2.5 percent compared to August 2022