A Market Breather
In August 2023, the Fraser Valley real estate market trends took a breather due to a mix of seasonal trends and the anticipation of rate changes. Let’s simplify the numbers and explore what this means for buyers and sellers.
Sales Slow for the Second Month
After reaching a high point in June, August saw a slight drop in real estate sales. There were 1,273 sales in August, down by 6.9 percent from July. However, when compared to August 2022, sales were up by 25.2 percent.
New Listings and Inventory
New listings also decreased, with 2,622 properties hitting the market in August, an 8.2 percent drop from the previous month. Nonetheless, this number was 28.2 percent higher compared to August 2022. The total active listings grew by 1.5 percent in August, reaching 6,291, which is only 7 percent below the ten-year average.
Cautious Buyers
Buyers were cautious, waiting to see if interest rates would change further. Prices remained relatively stable, and more listings are expected if rates stay steady.
Market Balance
The market for detached homes was balanced, with a sales-to-listings ratio of 16 percent, indicating a good supply-demand balance. Townhomes and apartments had stronger demand, with ratios of 38 percent and 32 percent, respectively. A balanced market typically falls within a 12 percent to 20 percent sales-to-listings ratio.
Steady Prices
Despite the slowdown in sales and new listings, benchmark prices in the Fraser Valley held steady, with gains of less than one percent across all property types. This stability is reassuring for both buyers and sellers.
Looking Ahead
As we head into fall, market activity is expected to increase. However, uncertainty regarding interest rates and housing strategy initiatives persists. It’s advisable for both buyers and sellers to consult with professional REALTORS® to make informed decisions.
Time on the Market
On average, properties took two to four weeks to sell. Townhomes and apartments sold faster (16 and 20 days, respectively) than detached homes (25 days).
Benchmark Prices in August 2023
- Single Family Detached: The benchmark price for these homes was $1,534,500, a slight decrease of 0.6 percent from July 2023 but still a 1.6 percent increase compared to August 2022.
- Townhomes: The benchmark price for townhomes was $846,200, showing a modest 0.5 percent decrease compared to July 2023 but a 0.9 percent increase compared to August 2022.
- Apartments: The benchmark price for apartments/condos was $553,500, with a 0.4 percent decrease compared to July 2023 but a 2.5 percent increase compared to August 2022.
In summary, the Fraser Valley real estate market experienced a slight slowdown in August. While sales and new listings decreased, prices remained stable. As we move into fall, market activity is expected to rise, but uncertainty lingers regarding interest rates and housing initiatives. Consulting with real estate professionals is wise in navigating these conditions.
Please contact Jared Gibbons, your local Fraser Valley Realtor, should you have any questions!