Fraser Valley home sales heat up this summer
Home sales in the Fraser Valley rebounded in July after what was classified as a lackluster market in June. There was a significant increase in home sales, which when combined with a slight decrease in new listing inventory, created a spike that helped rebound the market.
July 2019 saw 1458 sales in the Fraser Valley, taking into account all property type MLS® real estate listings. This was an 11.6 percent increase in sales when compared to June 2019 and 13 percent over sales in July of 2018.
It was an increase that was to be expected after one of the worst June real estate markets in almost 20 years. This is news that is welcomed by both buyers and sellers in the area. A return to a more balanced market is beneficial for everyone.
“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” said Chris Shields, President-Elect of the Board for the Fraser Valley.
July’s increase was likely due to pent-up demand alongside an increase in consumer confidence in the real estate market in the Fraser Valley and the Lower Mainland as a whole.
“REALTORS® in our market saw more activity at 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” continued Shields.
With the market returning to a more balanced state, more confidence in the market and an increase in first time buyers both buyers and sellers are feeling good about getting involved in real estate. While prices may be down slightly, sellers are also realizing that right now is an excellent time to buy due to the increased choices in the market. Plus, with prices down a bit that means the next-stage home is also more affordable to buy. Those looking to downsize or get into the market for the first time also have more choice.
There were 8,340 active listings available in the Fraser Valley at the end of July. This was a 12.7% increase compared to July 2018 and a decrease of 2.1% from June 2019.
The Board received 2,797 new listings in July, a 0.5% decrease compared to June 2019 and a 4.2% decrease from July 2018.
HPI® Benchmark Price Activity
- Single Family Detached Benchmark Price: $957,400. The Benchmark price for a single-family detached home in the Fraser Valley decreased 0.3 % compared to June 2019 and decreased 6.3 % compared to July 2018.
- Townhomes Benchmark Price: $520,700. The Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased % per cent compared to June 2019 and decreased 6.6 % compared to July 2018.
- Apartments Benchmark Price: $409,700. The Benchmark price for apartments/condos in the Fraser Valley remained unchanged compared to June 2019 and decreased 9 % compared to July 2018.
What is a Benchmark Price? A Benchmark price is an MLS® estimate of the value of what would be considered a ‘typical’ home in community. This is based on the most popular combination of features such as size, age, number of bedrooms and bathrooms. Buyers, Sellers and REALTORS® use Benchmark Price as one way to assist in determining fair price and market value for a home.
Therefore, if a first time buyer is looking to get into a condo in the Fraser Valley, they know that the typical condo was being sold at roughly $409,700. There may be smaller condos, or some in less desirable areas, or older condos for less and there will be condos with more sought-after features for more. This number provides a starting point for creating a wish list and to begin a realistic search.
Average Days to Sell
In the Fraser Valley Region, the average days to sell in July was the following:
- Apartment/Condo - 37.9 days
- Townhome - 31.7 days
- Single Family - 38.6 days
What Does This Mean For You?
In any market, it is important to have an experienced, licensed real estate professional on your side. When you work with someone who understands the current market conditions and trends, you can rest-assured that you will be guided properly in terms of fair market value. An experienced real estate agent looks at a variety of things including Benchmark Price, Average Price, Median Price, days to sell, market activity etc. to help buyers and sellers set expectations that are based on what’s happening in the real estate market.
Natasha Taylor specializes in Surrey, Langley, Richmond, North Delta, Cloverdale and White Rock real estate. With a background in project sales and years of experience in real estate, Natasha is very knowledgeable in all market sectors including condos, townhomes and single family homes and is adept at helping first time buyers, upsizers and downsizers with new and re-sale purchases.