Fraser Valley property sales drop over 50% in last 2 months: FVREB
Patrick Penner - Agassiz-Harrison Observer • June 15, 2022
Sales-to-active-listings ratio at 22%, peaked at 92% during pandemic
Last month’s property sales totalled 1,360, dropping 16.9 per cent from April’s 1,637 sales, which fell 37 per cent from March. In comparison to May 2021, sales are down 53.9 per cent.
“Since March, we’ve seen sales come down with an accompanying increase in inventory, subsequently restoring much-needed balance and cooling our heated market,” said FVREB President Sandra Benz.
“While still early, it suggests that as we gradually settle into a post-pandemic state of work and life, the big pandemic-era drivers – working from home and record low interest rates – may have run their course.”
Inventory has bounced back from what the FVREB described as the “worst supply shortage in 40 years” at the end of 2021, which was accompanied by all-time sales records.
The number of active listings have more than tripled since December. At the end of the month, active listings totalled 6,183, up 5.4 per cent from May, 2021, and increased 14.8 per cent from April.
Sales-to-active listings ratio was 22 per cent, which is closing in on pre-pandemic levels, according to the FVREB report. Any ratio greater than 20 per cent favours buyers; it peaked at 92 per cent during the pandemic, FBREB said.
“The softening of prices will be welcome news for homebuyers, especially in the face of rising mortgage rates,” said FVREB CEO Baldev Gill.
“The volatility we’ve witnessed over the past couple of years not only underscores the power of external events to affect the market but, in light of recent trends, the ability of the market itself, to adapt and trigger corrective mechanisms.”
Benchmarks:
- Single Family Detached:
At $1,712,500, the Benchmark price for an
FVREB single-family detached home decreased 2.4 per cent compared
to April 2022 and increased 26.2 per cent compared to May 2021. - Townhomes:
At $918,900, the Benchmark price for an FVREB townhome
decreased 1.4 per cent compared to April 2022 and increased 31.3 per
cent compared to May 2021. - Apartments:
At $581,400 the Benchmark price for an FVREB apartment/condo
decreased 1.1 per cent compared to April 2022 and increased 30.0 per cent
compared to May 2021.
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SURREY, BC – Market conditions are ideal for Fraser Valley home buyers this summer, but the persistent gap between buyers’ and sellers’ price expectations continues to suppress sales. The Fraser Valley Real Estate Board recorded 1,190 sales on its Multiple Listing Service® (MLS®) in July, down half a per cent from June and down three per cent year-over-year. July sales were 23 per cent below the 10-year average. The supply of homes for sale dipped slightly in July, down two per cent from June to 10,650, nearly 50 per cent above the 10-year seasonal average. New listings declined five per cent over June to 3,453. The Fraser Valley remains in a buyer’s market with an overall sales-to-active listings ratio of 11 per cent; the market is considered balanced when the ratio is between 12 per cent and 20 per cent.
