The Fraser Valley housing market rallied in July, presumably due to a release of pent up demand. July statistics from the Fraser Valley Real Estate Board continue to track towards 10 year averages, confirming our assertion that the market is equalizing. You can read more about this trend here.
Uncharacteristically, sales increased from last month for all home types. Most notable is the 18% increase in townhouse sales, followed by 11% for detached homes and 5% for condos. In the last 13 years—as far back as the Fraser Valley Real Estate Board’s stats are recorded—the month of July has only experienced a month-over-month increase in sales two other times.
Active listings decreased for all home types, which is also atypical for the month of July. Total listings ended the month at 93% of the 10 year average for July.
The increase in sales and decrease in active listings had the sales to active listing ratio up across the board, pushing both attached home types into a seller’s market while detached homes remain a balanced market. Average days on market is exhibiting a similar disparity between attached and detached home types as the average days on market for attached homes bucked historical trends, holding firm from the previous month while detached homes increased moderately.
Despite the increase in sales and decrease in active listings, HPI Benchmark prices continued to decline mildly, which is typical for the month of July. Month-over-month, the HPI Benchmark price of detached homes decreased by 0.3%, townhomes decreased by 0.9% and condos remained unchanged. This puts benchmark prices 6-9% below July of last year.
What does this mean for development land in the Fraser Valley?
The unexpected market activity in July is likely to bolster confidence among buyers of Fraser Valley development land, pulling more developers and investors off the sidelines. With that said, the perpetually decreasing prices have the same buyers continuing to take a cautious approach with respect to purchase prices.
Land values in many areas are repricing, albeit slowly, to align with the new reality of home sale prices. The exception to this is readily developable townhouse land. Demand for well-located, serviceable townhouse sites far exceeds supply so asking prices are remaining sticky.
Check out our curated summary of the Fraser Valley Real Estate Board’s July stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for July 2019 here.
This representation is based in whole or in part on data generated by the Fraser Valley Real Estate Board which assumes no responsibility for its accuracy.