The July stats are out from the Fraser Valley Real Estate Board and the Summer’s theme continues, with relatively flat prices, mild decreases in sales and growing inventory levels.
Similar to June, many of the key metrics are showing figures comparable to 2014 and 2015, just before the dramatic run-up of prices and plummeting inventory levels. For example, month over month days on market increased 23% for detached homes and 26% for townhomes to 32 and 24 days respectively, with condos holding steady from June at 21 days. Sale price as a percent of original list price is down across all home types, again, between 0.6% and 1.0%, signaling slightly less competition among buyers.
Townhome, condo and detached home sales are all down, month-over-month, but the decreases are not abnormal for the summer lull typically experienced in July. Townhomes sales decreased 5%, condos sales decreased 14% and detached home sales decreased 11%. Similarly, history would dictate that July’s month-over-month increase in inventory, between 8% and 10%, is to be expected this time of year.
Following 6 months of benchmark price deceleration in attached homes, we see our first month-over-month price decreases since December 2015. The decreases are minimal at 0.1% for townhomes and 0.7% for condos, but decreases nonetheless. The benchmark price of a Fraser Valley detached home decreased 0.1% as well, after a 0.2% decreased in June.
The attached market remains in the hands of the sellers for the time being with sales to active listing ratios decreasing to 27% and 29% for condos and townhomes respectively. The detached market fell further to 14%, risking falling out of a balanced market into a buyer’s market if it crosses the 12% threshold.
What does this mean for development land in the Fraser Valley? Aside from summer vacations dampening buyer and seller activity, there remains a healthy demand for well-located development sites, particularly those that are readily developable. We are still experiencing multiple offers on our listings of attached residential development sites in the Fraser Valley as buyers maintain confidence in end-product prices.
Check out our curated summary of the Fraser Valley Real Estate Board’s July stats in infographics below.