The August statistics from the Fraser Valley Real Estate Board are out and tell a story of continued market deceleration as the Summer lull endures. Sales activity remained modest and benchmark home prices decreased across the board.
Inventory levels appear to have reached a balancing point with active listings remaining relatively flat in August, due to lower than normal new listings.
Sales of all product types were reported as 37-42% below August of 2017 but are comparable to more balanced market conditions in 2014 and 2015. Active listing levels for townhomes and detached homes were within 4-7% of levels in August 2015. Condo listings ended the month 25% below what was reported in August 2015.
As expected, in a month of Summer vacations, average days on market increased for all product types. Most notable is the jump in condo days on market from 21 to 27, while townhomes and detached homes saw much less dramatic increases. The Summer’s moderated market activity also resulted in condo selling prices falling further from the original list price (. Townhome and detached home sale prices, as a percent of original list price, remained relatively constant for the month around 95% and 97%, respectively.
The question though, is if these shifts are persistent market changes or merely the Summer lull? September and October should be quite telling months for the future of the Fraser Valley real estate market.
What does this mean for development land in the Fraser Valley? Sales and revenue data coming out of new project launches is bolstering confidence in the market; however, the bulk of land buyers continue to take a disciplined and cautious approach to acquisitions, no longer assuming revenue will continue to climb. We are finally beginning to see land owner expectations moderating as the days of multiple, above-asking price, no-subject offers, become a thing of the past.
Check out our curated summary of the Fraser Valley Real Estate Board’s August stats in infographics below.