Fraser Valley Real Estate Board has released their housing market statistics for the month of June and it’s apparent that the softening we saw over the last few months has continued. In fact, sales decreased for the third month in a row as prices for all property types continued to decline, bringing a further sense of balance to the Fraser Valley’s real estate market.
Sales volumes are down, but “by how much?” you might ask. Well, it’s significant; when looking at the same month last year the changes are as follows:
- Condo: -33.3% YoY
- Townhomes: -36.2% YoY
- Detached homes: -56.2% YoY
This sense of market balance is showing up in other stats as well; days on market saw a sharp increase across all product types as townhomes, condos, and detached homes increased by 35.7%, 20% and 16.7% respectively. Sale price as a percent of list price also softened for the fourth consecutive month, falling by 1.6% for condos, 1.7% for townhomes and 2.2% for detached homes.
Benchmark pricing also declined across all product types yet again, however it remains over 20% higher than in June of last year. The above data points, along with increasing interest rates and slightly more inventory on the market, indicate that the downward trend on pricing will continue in the near term; but this decrease is a direct result of declining home buyer activity, and not an increase in supply like we need to see for a balanced market to be sustainable.
What does this mean for the development land market in the Fraser Valley?
The current economic climate combined with the end product market sentiment has resulted in split buying behaviour in the Fraser Valley; while many remain cautious or have benched buying activity all together for the time being, others see this time as an opportunity to take advantage of more favourable terms and continue to make acquisitions.
This does mean the buyer pool for development land has shrunk slightly and it’s becoming more common to see sites hit the market and remain available for a few weeks, whereas in months past, sites would be snatched up almost immediately (if they hit the market at all).
Check out our curated summary of the Fraser Valley Real Estate Board’s June stats in our infographic below.
View the Fraser Valley Real Estate Board’s entire stats package for June 2022 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.