Home sales remain well below historical levels in the Fraser Valley

Home sales in the Fraser Valley totaled 1,306 in June, the second lowest for the month since 2000.

It meant that sales lagged the 10-year average for June by 29.3% and were down 13.9% month-over-month and down 10.1% year-over-year according to a new report from the Fraser Valley Real Estate Board.

But it wasn’t just buyers that remained cautious as new listings were down 20.7% from May and down 10.5% from June 2018 to a total 2,810. That’s 9.6% below the 10-year average for June listings.

Inventory was up 19.3% year-over-year and up 0,1% from May to a total 8,516 active listings.

“The Fraser Valley market is still adjusting to the federal government’s new mortgage requirements and to the provincial government’s speculation and vacancy taxes,” said Darin Germyn, the board’s president. “We’re seeing historically low levels for home purchases in our region, and yet at the same time we’re seeing some prospective sellers holding back on listing their homes; waiting to see what the market will do.”

The number of active listings and a reduction in prices of a typical home of around 6-10% year-over-year creates an opportunity for buyers, Germyn added, especially with interest rates on hold.

HPI® Benchmark Price Activity

• Single Family Detached: At $960,100, the Benchmark price for a single-family detached home in the Fraser Valley decreased 0.4% compared to May 2019 and decreased 6.1% compared to June 2018.
• Townhomes: At $525,200, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley increased 0.5% compared to May 2019 and decreased 5.9% compared to June 2018.
• Apartments: At $409,800, the Benchmark price for apartments/condos in the Fraser Valley decreased 1.7% compared to May 2019 and decreased 9.6% compared to June 2018.