Fraser Valley property sales have dropped over 50 per cent in the last two months, as the region nears “more balanced levels not seen since the pre-pandemic supply,” according to the Fraser Valley Real Estate Board’s (FVREB) May-numbers report.
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.”
- 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.