Two rate cuts not enough to ignite summer home sales in the Fraser Valley
August continued to see a slowdown in the Fraser Valley real estate market, with 1,067 sales recorded — down 13% from July and 30% below the 10-year seasonal average, making it the second slowest August in a decade. Inventory saw a slight dip to 8,626 active listings, 1% lower than July but still 37% higher than August 2023. With a sales-to-active listings ratio of 12%, market conditions are just above a buyer’s market, the closest we’ve come since spring 2020.
Benchmark prices dipped slightly again, with the composite Benchmark price at $992,800. Prices for single-family detached homes, townhomes, and condos remain relatively flat compared to last year, reflecting the affordability challenges that continue to keep many potential buyers on the sidelines. Properties are taking longer to sell, with single-family homes averaging 33 days, townhomes 28 days, and condos 32 days on the market.
On September 4th, the Bank of Canada reduced its policy rate by another 0.25%, marking the third cut this year. Despite these cuts, buyers are still cautious, waiting to see how the market adjusts, however, we expect to start seeing the impact of these cuts on the market in the early fall. If you’re considering buying or selling, now is a critical time to have a thoughtful strategy in place.
Reach out to us to discuss how these changes might impact your real estate goals and what opportunities exist in this evolving market.
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What Does The Fraser Valley Real Estate Board Have To Say?
SURREY, BC – The Fraser Valley residential resale market slowed again in August, as homebuyers continue to face affordability challenges.
The Fraser Valley Real Estate Board recorded 1,067 sales in August, down by 13 per cent over last month and by 30 per cent over the 10-year seasonal average. August sales were the second slowest seasonally adjusted sales in a decade.
Inventory levels in the Fraser Valley dipped slightly in August with active listings at 8,626, down one per cent from July, but 37 per cent higher than August 2023.
“Despite two policy rate cuts by the Bank of Canada, buyers are still feeling the squeeze of overall affordability challenges in BC,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “With prices for single-family homes, townhouses and condos holding relatively flat year-over-year, many continue to face challenges buying their first home or moving up in the market, as reflected in seasonally slow August sales.”
New listings dropped nearly 20 per cent in August, to 2,778. With a sales-to-active listings ratio of 12 per cent, overall market conditions are just shy of a buyer’s market. The market is considered balanced when the ratio is between 12 per cent and 20 per cent. The last time the Fraser Valley dipped into buyer’s market territory was spring 2020.
“Buyers continue to wait on the sidelines in anticipation of more cuts to the Bank of Canada’s policy rate,” said FVREB CEO Baldev Gill. “However, we encourage anyone looking to get into the market to speak with their REALTOR® and lending professional to fully understand where interest rates may be heading in the coming months to determine the optimal long-term strategy.”
Across the Fraser Valley in August, the average number of days to sell a single-family detached home was 33, while for a condo it was 32. Townhomes took, on average, 28 days to sell.
Benchmark prices in the Fraser Valley dipped again in August, with the composite Benchmark price at $992,800.
MLS® HPI Benchmark Price Activity
• Single Family Detached: At $1,523,500, the Benchmark price for an FVREB single-family detached home decreased 0.4 per cent compared to July 2024 and decreased 0.4 per cent compared to August 2023.
• Townhomes: At $846,300, the Benchmark price for an FVREB townhome decreased 0.3 per cent compared to July 2024 and increased 0.1 per cent compared to August 2023.
• Apartments: At $546,200, the Benchmark price for an FVREB apartment/condo decreased 0.9 per cent compared to July 2024 and decreased 0.8 per cent compared to August 2023.
Find the August 2024 Statistics Package HERE. 
