After five months of successive increases, real estate sales in the Fraser Valley dropped in response to a combination of continued rising interest rates and the summer sales cycle.
The Fraser Valley Real Estate Board processed 1,368 sales in July on its Multiple Listing Service® (MLS®), a decrease of 29.3 per cent below June, but still 37.8 per cent above July 2022.
There were 2,855 new listings in July which was in-line with the 10 year average for the month. The number of active listings cimbed above 6,000 which is notable and is offering some relief to a market that had been starved for available homes.
Summer is normally a slower period for real estate sales. Combined with higher interest rates, there has been a slowdown in activity. Buyers and sellers alike are in a wait and see approach it seems. They are taking time to carefully evaulate their objectives. Still high prices and higher mortgage rates are putting obvious pressure on affordability.
The market for detached homes softened in July with a sales-to-active listings ratio of 17 per cent while demand for townhomes and apartments remained firm at 45 per cent and 36 per cent respectively. The market is considered balanced when the sales-to-active-listing ratio is between 12 per cent and 20 per cent.
On average, properties spent two to three weeks on the market before selling, with detached homes spending 22 days on the market, and townhomes and apartments moving slightly more quickly at 16 and 18 days, respectively.
It seems to me that there is strong pent-upd demand out there. The barrier is affordability for many buyers, unfortunately.
I will provide a more detailed analysis in my forthcoming monthly newsletter.
If you would like more detailed or area specific information, please don't hesitate to contact me.