July 2024 Market Update

OVERVIEW

Benchmark prices in the Fraser Valley are slightly lower compared to the same month one year ago (less than 1% difference).  Many buyers remain on the sidelines BUT well-priced homes continue to sell. Having an experienced agent on your side can make the difference when looking for your dream home or investment. So let me know what questions you need answered.

Long intros are overrated – let’s jump into the stats!!

HOW ARE WE DOING?

Benchmark prices in the Fraser Valley / City of Surrey:

• Detached = $1,529,600 / $1,663,100
• Townhouses = $848,800 / $877,500
• Apartments = $551,000 / $544,000

In the month of July it took a little longer to sell properties when compared to the previous month (29 days in July for all properties vs 25 days in June). The property-type breakdown is: Detached (32 days), Townhouses (26 days) and Apartments (28 days) in July.

Let’s take a quick look at a key indicator – the Sales-To-Active Listing ratio which is a calculation of how many sales there were compared to how many active listings in a given period. This let’s us know about the demand or “health” of the market.

SALES-TO-ACTIVE LISTING RATIO

First, the fundamentals:

• When the ratio is between 12-20%, the market (and prices) are balanced.
• Over 20% for a sustained period and there is upward pressure on prices. (Seller’s Market)
• Below 12% for a sustained period and there is usually downward pressure on prices (Buyer’s Market).

The current sales-to-active ratio for the market as a whole for July 2024 is 15.7%. Its important to note that there are variations by property type. By property type the sales to active listing ratio is as follows:

• Detached homes: 11.1% (has been in “balanced” territory since July 2023)
• Townhomes: 30.1% (has been in “Seller’s” territory all the way back to Fall 2022)
• Apartments: 24.4% (also in “Seller’s” territory since Fall 2022 with slight variations)

The above makes sense to me considering the price point of detached homes is higher combined with high interest rates and tough stress test that buyers are making purchases in the more affordable Townhome and Apartment categories.

WHAT ELSE IS NEW IN REAL ESTATE?

Some interesting things have happened in July and may have an impact on you in different ways. Here are some highlights.

• Bank of Canada reduces rate by 0.25% to 4.5%. This is the second consecutive rate cut and the next rate decision is September 4th
• Residential Tenancy Board Changes were introduced which extends the notice period to tenants to 4 months if a buyer wants to occupy the property. This has huge impacts on buyers!!! There are changes being introduced in August to mitigate the negative effects of this change on buyers, especially first-time buyers. For instance, mortgage lenders may not be able to provide financing for tenant occupied homes in these situations – which is not a good situation for you to be in

Market changes and influences will impact you in different ways. It is important to talk to someone that understands how to navigate challenging situations and will make sure you are protected every step of the way.  If looking to explore or ask questions about your situation, reach out for a no-obligation conversation. Always good hearing from you.

What questions do you have about the recent real estate changes or market? Let me know with an email or text.

July 2024 Market Update for Fraser Valley

July 2024 Market Update for Surrey