Home buyers hunting for property in the region are facing the worst supply shortage in four decades, according to the Fraser Valley Real Estate Board.
For months now, the number of new listings has been shrinking, and they decreased even further in August.
At the same time, sales for the month were second highest of all time, remaining “unusually” high following a record-breaking year, the board said in a Sept. 2 news release.
“Our sales are over 30 per cent above normal, while our housing stock is at levels last seen in the early 1980s,” said Larry Anderson, president of the board.
“To put our supply and demand situation in perspective, for every 100 townhomes on the market in August, Fraser Valley realtors sold 94.”
He added that demand for single-family homes and condos continue to favour sellers and drive up prices.
A total of 2,087 property sales were processed in August, a four per cent increase from July and a 2.4 increase from the same month last year. The record for August sales occurred in 2005.
There were 2,107 new listings last month, a decrease of 36.3 per cent from August, 2020, and a 13.3 per cent decrease from July, 2021.
The board’s inventory by the end of August was 4,077 listings, a 44.9 per cent decrease from the same month last year, and a 16.8 decrease from July, 2021.
The foreign buyers’ tax introduced by the province in 2016, and the mortgage stress test introduced by the federal government in 2018, do not seem to be improving affordability, according to Baldev Gill, CEO of the board.
“In the last five years, the price of a typical detached home in the Fraser Valley has increased by 50 per cent,” Gill said.
“Those measures did not address the core issue, which is insufficient supply to meet the rise in our population growth. All levels of government must work together to correct the structural housing shortage.”
The average time it took to sell a single-family detached home in the Fraser Valley was 29 days, 19 days for a townhome and 29 days for an apartment, the board said.
Single Family Detached:
At $1,336,800, the Benchmark price for an FVREB single-family detached home increased 1.3 per cent compared to July 2021 and increased 31.1 per cent compared to August 2020.
At $697,500, the Benchmark price for an FVREB townhome increased 1.3 per cent compared to July 2021 and increased 23.7 per cent compared to August 2020.
At $498,800, the Benchmark price for an FVREB apartment/condo increased 1.0 per cent compared to July 2021 and increased 14.1 per cent compared to August 2020.