Real estate sales in the Fraser Valley slowed in August

Real estate prices in the Fraser Valley slowed in August according to the Fraser Valley Real Estate Board (FVREB) — marking the second consecutive month that sales dipped.

The board says this comes after sales hit a 15-month high in June, and it attributes seasonal trends and “cautious anticipation of the next rate announcement” as reasons for the slowdown.

Breaking down the numbers, the board says it recorded 1,273 sales in August 2023. That number is a 6.9 per cent decrease from July, although these numbers still mark a sharp increase from those seen last summer — as sales were 25.2 per cent higher than in August 2022.

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. https://t.co/116zXjygsS pic.twitter.com/L0zfgo0YZX

— FVREB (@FVREB) September 5, 2023

Available listings on the housing market saw a dip as well, as 2,622 homes for sale marked an 8.2 per cent dip from July’s numbers — although, still a significantly higher number than last summer, when 28.2 per cent more homes were on the market.

“Many buyers are in a watchful, waiting mode as they hold off on decisions in anticipation of potential further rate changes,” said FVREB Chair Narinder Bains.

“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.”

While demand for detached homes remains fairly balanced according to the board’s report, the demand for townhomes and apartments stood significantly higher in August. The board didn’t specify whether or not this has anything to do with the difference in average cost between a detached home and an apartment or townhome.

Data from the FVREB shows that a detached home’s benchmark price is $1,534,500, while a townhome’s benchmark is $846,200, and an apartment’s benchmark is $553,500.

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Meanwhile — even though overall real estate sales in the Fraser Valley dipped — real estate prices have stood strong, remaining “relatively unchanged compared to last month with gains of less than one per cent 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.”

The board adds that, on average, detached homes are spending 25 days listed on the market before a sale is made, while townhomes and apartments are typically selling in less than three weeks.