The first month of Summer statistics are out from the Fraser Valley Real Estate Board and as you would expect, the key metrics are showing a continued deceleration in many categories. However, it’s far from a quiet market as demand is still outstripping supply.
Sales declined in July, between 9% and 13% depending on home type, but this is at least in part due to a lack of homes for sale. The quantity of active listings fell to levels not seen since 1981, which is wild considering population growth and the number of homes built in the last 40 years. Total listings ended the month at only 61% of the 10 year average, following another month of declining new listings (only 83% of the 10 year average).
Consistent with a typical summer slowdown, average days on market slowed significantly for all home types and sale price as a percent of original list price decreased for all home types. With that said, detached homes and townhomes are still averaging sale prices above the original list price.
Despite the demand metrics indicating deceleration, the HPI Benchmark Price of a townhouse in the Fraser Valley is still going strong with a 1.5% increase over last month. However, for the first time in over 12 months, the Benchmark price of a single family home decreased. The price of a condo held relatively constant with a 0.1% increase.
What does this mean for the development land market in the Fraser Valley?
The resale market has decelerated but the news coming out of the sales centres at recent project launches highlights we are still in a very strong market and this has confidence high among developers. Sale prices of detached homes and townhomes have plateaued in many areas, but condo prices continue to climb in both wood frame and concrete. Land values are following suit.
We recently reported that the frenzy lifting from the market was causing deal terms to relax. Unfortunately, that was short lived as deal terms have plateaued again, and are even compressing in some categories, as the supply of developable land dries up. There are simply too many developers/builders chasing too few sites.
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 2021 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.