The Fraser Valley recorded a total of 1,935 home sales this past month, according to new statistics published by the Fraser Valley Real Estate Board (FVREB) on Wednesday.
That total represents a 13.1% increase over the 1,711 home sales recorded in May, a 51.1% increase compared to June 2022, and is also on par with the 10-year average for June, the board says.
Home sales in the Fraser Valley region started 2023 with just 626 in January, but have been gaining steam each month to 898 in February, 1,550 in March, and 1,554 in April.
However, low supply continues to be a point of concern.
In June, FVREB saw 3,424 new listings, which is a 2.8% improvement compared to June 2022, but a 3.1% decrease compared to the 3,533 added in May.
The number of total active listings in the Fraser Valley is now 5,944, which is a 6.9% increase compared to May, but is 8.2% lower than this time last year.
The Market Lean
Where is the market now? Are we in a buyers' market or a sellers' market?
The aforementioned statistics allow us to identify the sales-to-new-listings ratio and the sales-to-active-listings ratio, two quantitative indicators of which way the market is currently leaning.
For the sales-to-new-listings ratio, a ratio of 40% or lower is considered a buyers’ market, a ratio of 55% or higher is viewed as a sellers' market, and anything in between is viewed as a sign of market balance.
With 1,935 home sales and 3,424 new listings in the Fraser Valley in June, the sales-to-new-listings ratio is now at 56.5%, just into sellers' market territory. That same number was just 48.4% in May, which would indicate a shift towards favouring sellers, presumably as a result of the low supply.
For the sales-to-active-listings ratio, 12% or lower is viewed as a buyers' market, 20% or over is viewed as a sellers' market, and anything in between is viewed as market balance.
With 1,935 home sales in an active inventory of 5,944 in the Fraser Valley in June, the sales-to-active-listings ratio is now at 32.6%, well within sellers' market territory, up from 30.8% in May.
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Price Increase Continues
In June, the benchmark price hit $1,526,200 for single-detached homes, $845,400 for townhouses, and $552,222 for condominiums. All three represent increases between 1.8% and 2.3% from May, but larger decreases when compared to June 2022.
Notably, FVREB did not provide a composite residential benchmark price this month.
In terms of how long properties stay on the market, the average number of days to sell is now 21 for single-detached homes, 16 for townhouses, and 22 for condominiums, after respectively being 23, 18, and 23 in May.
"As seen in recent months, prices continue to trend upward, with lack of supply and high demand for housing," said FVREB Chair Narinder Bains. "What we're seeing is sales increasing, with buyers entering the market despite current financial implications of anticipated rate hikes."
The Bank of Canada's next interest rate announcement is scheduled for Wednesday, July 12.
