FVREB – real estate sales dip in August; prices hold steady

In the dynamic landscape of the Fraser Valley real estate market, the month of August witnessed a subtle deceleration in sales, attributing the shift to seasonal patterns and a judicious pause in anticipation of the forthcoming rate announcement. After attaining a 15-month pinnacle in June, sales experienced a modest downturn for the second consecutive month.

Key Highlights:

• Sales Overview:
  • In August 2023, the Fraser Valley Real Estate Board reported a total of 1,273 sales on its Multiple Listing Service (MLS®), marking a 6.9% decline from July.
  • Nevertheless, there was a noteworthy year-over-year surge, with sales up by 25.2% compared to August 2022.
• New Listings and Inventory:
  • New listings recorded a decrease of 8.2% from the previous month, settling at 2,622 in August.
  • Despite the monthly dip, new listings stood at an impressive 28.2% above the figures recorded during the same period last year.
  • Active listings continued their upward trajectory, growing by 1.5% to reach 6,291 in August, maintaining a proximity of 7% to the ten-year average.
• Market Dynamics:
  • Chair of the Fraser Valley Real Estate Board, Narinder Bains, noted a prevalent “watchful waiting” trend among buyers, holding off on decisions in anticipation of potential rate changes.
  • The sales-to-active-listings ratio for detached homes reflected a balanced market at 16%, while townhomes and apartments exhibited stronger demand at 38% and 32%, respectively.
• Price Stability:
  • Benchmark prices in the Fraser Valley demonstrated stability, exhibiting a marginal decrease of less than one percent across all property types compared to the previous month.
• Outlook and Recommendations:
  • Baldev Gill, CEO of the Fraser Valley Real Estate Board, anticipates increased market activity in the upcoming fall months.
  • Acknowledging the uncertainty surrounding interest rates and provincial housing strategy initiatives, Gill advises buyers and sellers to consult with professional REALTORS® for a comprehensive assessment of risks and opportunities.
• MLS® HPI Benchmark Price Activity (August 2023):
  • Single Family Detached: The Benchmark price for an FVREB single-family detached home stood at $1,534,500, reflecting a 0.6% decrease from July 2023 and a 1.6% increase from August 2022.
  • Townhomes: With a Benchmark price of $846,200, townhomes experienced a 0.5% decrease compared to July 2023, coupled with a 0.9% increase from August 2022.
  • Apartments: The Benchmark price for apartments/condos settled at $553,500, indicating a 0.4% decrease from July 2023 and a robust 2.5% increase from August 2022.

As the market adapts to evolving economic factors, the Fraser Valley real estate sector remains dynamic, with stakeholders closely monitoring trends and poised for potential shifts in the coming months. For a detailed analysis and expert guidance, both buyers and sellers are encouraged to engage with professional REALTORS® to navigate the intricacies of the current landscape.