Fraser Valley home sales rebound in July after lackluster June

A noticeable lift in home sales and slight decrease in new listings bolstered the Fraser Valley housing market in July. The Fraser Valley Real Estate Board processed 1,458 sales of all property types on its Multiple Listing Service® (MLS®) in July, a 11.6 per cent increase compared to sales in June 2019, and a 13 per cent increase compared to the 1,290
sales in July of last year.

Chris Shields, President-Elect of the Board, observed, “We’ve been
expecting market improvement, but didn’t quite anticipate July’s
momentum. We’ve gone from the worst June in almost 20 years to a July that’s only slightly below the 10-year average. For both buyers and
sellers, a return to an active, more balanced market is welcome news.”

“We attribute the change in July to pent-up demand and an increase
in consumer confidence. REALTORS® in our market saw more activityat open houses and an increase in the number of first-time buyers.
Data from our informal member market poll in July showed the highest level of first-time buyer purchases in the Fraser Valley since early
2016.”

There were 8,340 active listings available in the Fraser Valley
at the end of July, an increase of 12.7 per cent compared to July of last year and a decrease of 2.1 per cent compared to June 2019. The Board received 2,797 new listings in July, a 0.5 per cent decrease compared to June 2019’s intake of 2,810 new listings and a 4.2 per cent decrease compared to July of last year. “Sales of single family detached in our
region increased by over 18 per cent in July compared to last year,”
added Shields. “Sellers are now recognizing that although listing prices are down, it’s also now more affordable to buy.”

HPI® Benchmark Price Activity
Single Family Detached: At $957,400, the Benchmark price for a single-family detached home in the Fraser Valley decreased 0.3 per cent
compared to June 2019 and decreased 6.3 per cent compared to July
2018. Townhomes: At $520,700, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 0.9 per cent
compared to June 2019 and decreased 6.6 per cent compared to July
2018. Apartments: At $409,700, the Benchmark price for apartments/condos in the Fraser Valley remained unchanged compared to June
2019 and decreased 9 per cent compared to July 2018. Full package:
http://www.fvreb.bc.ca/statistics/Package201907.pdf

Mortgage rates are down and the local real estate market takes another hit. We are passing the mid-point of the year most homeowners at this point are very aware of the down turn we are experiencing in the local real estate market. Inventory has climbed and sales have fallen. Property values are headed down and as much as some would call it a balanced market, it’s more of a buyers’ market. Of course, there are few exceptions to this. Vancouver area homes sales posted their weakest June in almost twenty years. “We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said Ashley Smith, REBGV president. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.” To take a closer look at the stats, click here Selling property in this market is challenging and requires a skillful realtor. Hard work often pays off, but in these conditions; it’s more about price and affordability. Buyers are taking advantage of these conditions and ‘low ball offers’ are becoming the norm. Sellers should prepare themselves and understand that it will likely take additional time to sell their home. When it comes to selling successfully there are few things that can help in delivering great results. Click here to ask me. Mortgage lending conditions are not much better. The good news is that interest rates have fallen since the beginning of the year and 5 year fixed is now as low as 2.74%. Most economists think fixed rates should hold steady and that we should see the prime lending rate move lower later this year. Borrowers looking to access these cheap rates should ensure they have all income taxes up to date and if you are self-employed ensure you have updated financial statements. This will help get you the answer you need quickly. Alternatively, if you need funds quickly and cannot meet the stringent lending criteria; then there are lots options but it comes at a higher cost. Mortgage rates: (certain conditions apply): Best 5 year fixed: 2.74% - insured Best 5 year fixed: 2.79% - uninsured Best Variable: Prime – 1% Best 10 year fixed: 3.44%