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A Challenging Summer for Fraser Valley Real Estate

Discover the latest trends in the Fraser Valley real estate market in our comprehensive July 2024 update. Learn how the market is shifting in favor of buyers with the second slowest July sales in a decade and a notable rise in inventory levels. Understand the impact of current market conditions on single-family homes, condos, and townhomes, and get insights from industry experts on navigating these changes. Whether you're a buyer or seller, our detailed analysis and professional advice will help you make informed real estate decisions. Stay ahead with our essential market report, complete with benchmark price activities, average days on market, and more. Read now to stay informed and make the best choices in this evolving market.

Based on press release from the FVREB

8/2/20243 min read

Cool Summer Market Persists in Fraser Valley with Second Slowest July Sales in a Decade

SURREY, BC — A Challenging Summer for Fraser Valley Real Estate

The Fraser Valley real estate market faced a sluggish July, recording the second slowest sales month in a decade. Despite seasonally-adjusted sales remaining low, the inventory continued to rise, shifting the market dynamics towards favoring buyers.

The Fraser Valley Real Estate Board (FVREB) reported 1,230 sales in July, marking a seven per cent decline from June and a 26 per cent drop compared to the 10-year seasonal average. The rise in inventory levels reached a 10-year high with active listings at 8,731. This represents a five per cent increase from June and a significant 41 per cent rise from July 2023.

"Despite a balanced market overall, certain areas within the Fraser Valley are experiencing buyer-friendly conditions with decreasing prices," said Jeff Chadha, Chair of the FVREB. "This trend is evident as buyers now have more time to consider properties before making offers. However, well-priced properties are still selling swiftly, indicating that motivated buyers remain active."

Inventory and Sales Trends

Rising Inventory and Stable New Listings

New listings in July remained steady, slightly decreasing by less than half a per cent from June to 3,412. The sales-to-active listings ratio stood at 14 per cent, maintaining a balanced market condition, which is defined by a ratio between 12 and 20 per cent.

Market Conditions in July

Single-Family Detached Homes: Average days on market - 31
Condos: Average days on market - 28
Townhomes: Average days on market - 25

Benchmark prices saw a slight decline, with the composite Benchmark price dropping below $1 million for the first time since January 2024, now at $999,100.

MLS® HPI Benchmark Price Activity

Single-Family Detached Homes

Price: $1,529,600
Monthly Change: 0.1% increase from June 2024
Yearly Change: 0.5% decrease from July 2023

Townhomes

Price: $848,800
Monthly Change: 0.3% decrease from June 2024
Yearly Change: 0.1% decrease from July 2023

Apartments

Price: $551,000
Monthly Change: Stable compared to June 2024
Yearly Change: 0.3% decrease from July 2023

Expert Insights and Future Outlook

“Even with consecutive policy rate cuts by the Bank of Canada, first-time homebuyers continue to face hurdles such as high-interest rates, the mortgage stress test, and the need for substantial down payments,” said FVREB CEO, Baldev Gill. “As we anticipate the impact of these rate cuts, we advise prospective buyers and sellers to consult with professional REALTORS® who possess the expertise to navigate the current market landscape.”

Conclusion

As the market continues to evolve, it is crucial for buyers and sellers to stay informed and seek professional advice to make well-informed decisions. The current conditions present opportunities for both buyers and sellers, especially in certain areas where prices are more favorable.

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The information provided in this article is for general informational purposes only. It should not be construed as professional advice. Always consult with a qualified real estate professional before making any real estate decisions.

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