The Fraser Valley Real Estate Board’s stats are out for April and it’s not the Spring market we expected. Prices remain sticky for now but sales are down and sale price as a percent of list price is down across all home types indicating less aggressive buying behaviour. A healthy injection of new listings in April put active listings up 20% to 37% year over year depending on home type.
Historically smaller month-over-month increases in sales are common for April after the typical flood of sales in March but this April’s sales numbers are down 6% for townhomes, 12% for condos and 39% for detached homes when compared to April 2017.
Detached homes and townhomes are maintaining steady month-over-month increases in benchmark prices, up 0.8% and 1.5% respectively. The notable change for April is that, following 6 months of 3-4% increases in the benchmark price, condos only rose 1.6% in a month where we would typically expect increased pressure on pricing.
Despite increased inventory and rising prices, demand remains strong as average days on market decreased for single family across the Fraser Valley. Townhouses and condos remained relatively constant at 16 and 15 days respectively. This stat helps us understand the monthly change in buyer appetite but the actual figures don’t tell a complete story, particularly in the new home market. Frontline’s Project Marketing team is reporting having sold out an entire Yorkson condo project in 4 days, from a boardroom.
What does this mean for residential development land? Demand remains strong for well-located development sites in the Fraser Valley but buyers are returning to a more disciplined approach with a general preference to land with potential for the more affordable version of each home type: condos, small townhomes and compact detached homes.
Check out our curated summary of the Fraser Valley Real Estate Board’s April stats in infographics below.