FRASER VALLEY

Sales dip despite central bank rate cut; inventory grows

Fraser Valley home sales for June were mildly disappointing after an optimistic uptick one month earlier. The Valley’s sales decline comes while the national average for home sales rose in June by 3.7%. Market watcher were expecting sales volume to continue upward following the Bank of Canada’s policy rate cut of 25 basis points on June 5, the first central bank cut to its key lending rate in four years. However, even with the key interest rate now at 4.75%, the major bank rates for fixed term mortgages still remain close to 6%, keeping many prospective buyers waiting for further rate cuts. Prospective buyers will be keeping an eye open for the Bank of Canada’s next policy rate announcement, scheduled for July  24. Many economists are predicting another rate cut by the central bank then, as there a signs that Canada’s inflation rate is on track to its target 2% range. Meanwhile, the sales slump may continue until further rate cuts are announced. June’s sales total of 1,317 homes was down 13% from the preceding month which saw 1,517 Valley transactions. Despite recent month-over-month differences, however, sales volumes in the Fraser Valley for June – still not yet back to their pre-covid levels – were down 30% last month on a 10-year seasonal average. Inventory, on the other hand, has been growing during the sales slump. While new listings in June were down 9% from the preceding month, they totalled an impressive 3,418 homes across all property types, boosting the available inventory at the end of June to 8,350 active listings, a 6% increase from the preceding May and continuing a record high level for the past five years. Along with the strong inventory and slower sales, home prices across the Valley have been moderating after months of upward movement. Detached home prices were notably flatter in June, while townhouses and condominiums showed slight benchmark dips overall.  At the end of June, the combined benchmark price for a residential property in the Fraser Valley was $1,001,700, a decrease of 0.5% from the preceding month.    

My monthly selection below of comparative benchmarks prices for homes in different areas of the Fraser Valley provides a guide for home shoppers. Each property category has its overall benchmark price along with a cluster of the three closest benchmarks on each side of the average. The month-over-month price fluctuations illustrate the relative demand and sales activity for the period. The extremities of each benchmark is also provided to give you an idea of the range of prices making up the average. It is important to remember that benchmarks are averages, so specific prices representing excellent purchase opportunities may not be apparent in the average. If you are interested in exploring any particular neighbourhood, please don’t hesitate to give me a call. I can provide you with the most up-to-date information on any new listings. And if you are thinking about listing your home for sale, I can prepare a Customized Market Analysis for your property, and advise you on the optimal listing price in the current market conditions. Last month, Valley properties across all property types sold on average quite quickly. Single family detached homes sold on average in 22 days;  townhouses in 20 days; and condominiums in 30 days.

 

 

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of June was $1,528,900, a decrease of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,973,300 and Mission at $1,056,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,566,700, a decrease of 0.6% from the preceding month; Langley at $1,637,500, a decrease of 0.8% from the preceding month; and South Surrey/White Rock at $1,973,300, an increase of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,521,300, a decrease 0.7% from the preceding month; North Surrey at $1,514,500, a decrease of 0.2% from the preceding month; and North Delta at $1,453,400, an increase of 1.0% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of June was $851,100, a decrease of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $978,600 and Abbotsford at $666,800. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $859,000, no change from the preceding month; Cloverdale at $860,000, a decrease of 1.7% from the preceding month; and Langley at $872,600, a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $791,500, a decrease of 0.9% from the preceding month; Mission at $675,400, an increase of 0.1% from the preceding month; and sAbbotsford at $666,800, a decrease of 0.5% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of June was $555,100, a decrease of 0.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $636,800 and Abbotsford at $446,900. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $573,500, no change from the preceding month; North Delta at $386,400, a decrease of 0.1% from the preceding month; and Cloverdale at $991,100, a decrease of 2.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $498,400, a decrease of 0.8% from the preceding month; Mission at $456,600, an increase of 0.9% from the preceding month; and Abbotsford at $446,900, a decrease of 1.1% from the preceding month.

I can help

These are challenging times for home buyers and homeowners. With higher mortgage interest rates, you may need to adjust your financial strategy for your home purchase. If you need help in managing your home ownership plans, I can help. I have post-graduate education in business along with years of experience in both banking and real estate. I am happy to help in any way I can. I want my clients to achieve their goals. Please don’t hesitate to call me.