Fraser Valley Monthly Statistics Package July 2024

Cool summer market persists in Fraser Valley with second slowest July sales in a decade SURREY, BC — Sluggish seasonally-adjusted sales and a continued rise in inventory has the Fraser Valley market slowly shifting to favour buyers. The Fraser Valley Real Estate Board recorded 1,230 sales in July, down by seven per cent over last month and down by 26 per cent over the 10-year seasonal average. Inventory levels in the Fraser Valley reached a 10-year seasonally adjusted high in July with active listings at 8,731, up 5 per cent over June and 41 per cent higher than July 2023. New listings were flat in July, down by less than half a per cent from June, to 3,412. With a sales-to-active listings ratio of 14 per cent, overall market conditions are balanced. The market is considered balanced when the ratio is between 12 per cent and 20 per cent. “Despite back-to-back policy rate cuts by the Bank of Canada, many first-time homebuyers are still facing challenging market conditions — high interest rates, the mortgage stress test and the need for a substantial down payment,” said FVREB CEO, Baldev Gill. “While we wait for the rate cuts to take effect, we encourage anyone looking to buy or sell to speak with a professional REALTOR®, who has the knowledge and expertise to navigate the current market.” MLS® HPI Benchmark Price Activity Single Family Detached: At $1,529,600, the Benchmark price for an FVREB single-family detached home increased 0.1 per cent compared to June 2024 and decreased 0.5 per cent compared to July 2023. Townhomes: At $848,800, the Benchmark price for an FVREB townhome decreased 0.3 per cent compared to June 2024 and decreased 0.1 per cent compared to July 2023. Apartments: At $551,000, the Benchmark price for an FVREB apartment/condo remained flat compared to June 2024 and decreased 0.3 per cent compared to July 2023.

Fraser Valley Monthly Statistics Package April 2024

DOWNLOAD FULL STATS PACKAGE HERE   Last month, the supply of available homes in the Fraser Valley market continued to grow, yet buyers remained relatively cautious, resulting in a more subdued resale market in April. The Fraser Valley Real Estate Board documented 1,471 transactions on its Multiple Listings Service® (MLS®) in April, marking a 5 percent increase from March but a 5 percent decline compared to April 2023. Despite being the third-lowest recorded for an April in the last decade, sales remained tepid while inventory continued to expand, reaching levels unseen since September 2020. Active listings reached 7,313, surging by 18 percent over the previous month and standing 17 percent above the 10-year average.     “We are seeing a relatively calm and balanced market right now,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “Which means buyers have time to shop around and purchase a home without the pressure of a few years ago, and while prices are holding fairly steady across all property types.”   The influx of new listings contributed to the overall growth in inventory, soaring by 33 percent in April to 3,976. With a sales-to-active listings ratio of 20 percent, the market conditions overall are deemed balanced, falling within the range of 12 to 20 percent indicating equilibrium. "There's a notable sense of caution prevailing in the market at present," remarked FVREB CEO Baldev Gill. "Buyers are exhibiting hesitancy in committing to home purchases until there's a potential reduction in the Bank of Canada's rate. Nevertheless, we encourage anyone considering entering the market to consult their REALTOR® and financial advisor to explore the current rate landscape." The average number of days homes spend on the market continued to decrease, with single-family detached homes averaging 23 days (down from 27 in March), apartments at 23 days (down from 26 in March), and townhomes moving even quicker at 19 days (down from 20 in March). Benchmark prices overall experienced a slight uptick again in April, rising by 0.5 percent from March and up 1.5 percent compared to April 2023. MLS® HPI Benchmark Price Activity: Single Family Detached: With a benchmark price of $1,532,700, FVREB single-family detached homes saw a 1.0 percent increase compared to March 2024 and a 5.3 percent increase compared to April 2023. Townhomes: With a benchmark price of $854,700, FVREB townhomes witnessed a 0.9 percent increase compared to March 2024 and a 4.9 percent increase compared to April 2023. Apartments: With a benchmark price of $561,900, FVREB apartments/condos saw a 1.2 percent increase compared to March 2024 and a 5.7 percent increase compared to April 2023.

Greater Vancouver Monthly Statistics Package April 2024

DOWNLOAD FULL STATS PACKAGE HERE In April, the number of homes actively listed for sale on the MLS® in Metro Vancouver continued to rise, marking a 42 percent increase compared to the previous year and surpassing the 12,000 mark, a level not seen since the summer of 2020. According to Greater Vancouver REALTORS® (GVR), residential sales in the region reached 2,831 in April 2024, showing a 3.3 percent uptick from the 2,741 sales recorded in April 2023. However, this figure was 12.2 percent lower than the 10-year seasonal average of 3,223 sales. "It’s a feat to see inventory finally climb above 12,000. Many were predicting higher inventory levels would materialize quickly when the Bank of Canada began its aggressive rate hikes, but we’re only seeing a steady climb in inventory in the more recent data. The surprise for many market watchers has been the continued strength of demand along with the fact few homeowners have been forced to sell in the face of the highest borrowing costs experienced in over a decade." -Andrew Lis, REBGV director of economics and data analytics   In April 2024, there were 7,092 newly listed detached, attached, and apartment properties for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver. This marks a significant 64.7 percent increase compared to the 4,307 properties listed in April 2023, exceeding the 10-year seasonal average by 25.8 percent, standing at 5,637. The total number of properties currently listed for sale on the MLS® system in Metro Vancouver stands at 12,491, indicating a notable 42.1 percent increase compared to April 2023 (8,790), surpassing the 10-year seasonal average by 16.7 percent, set at 10,704. Examining the sales-to-active listings ratio for April 2024 across all property types (detached, attached, and apartments), it sits at 23.5 percent. Breaking down by property type, the ratio stands at 17.6 percent for detached homes, 31.0 percent for attached properties, and 26.0 percent for apartments. Historical data analysis suggests that downward pressure on home prices typically occurs when the ratio remains below 12 percent for an extended period, while upward pressure on prices tends to happen when it exceeds 20 percent over several months. “Another surprising story in the April data is the fact prices continue climbing across most segments with recent increases typically in the range of one to two per cent month-over-month,” Lis said. “The one segment that didn’t see an uptick in prices in April were apartments, which saw a 0.1 per cent decline month-over-month. This moderation is likely due to a confluence of factors impacting this more affordability sensitive segment of the market, particularly the impact of higher mortgage rates and the recent boost to inventory levels, tempering competition somewhat.” Currently, the MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver stands at $1,205,800. This reflects a 2.8 percent increase over April 2023 and a 0.8 percent increase compared to March 2024.     In April 2024, sales of detached homes reached 814, marking a 0.7 percent increase from the 808 detached sales recorded in April 2023. The benchmark price for a detached home is $2,040,000, showing a 6.3 percent increase from April 2023 and a 1.6 percent increase compared to March 2024. Sales of apartment homes in April 2024 reached 1,416, a 0.2 percent increase compared to the 1,413 sales in April 2023. The benchmark price of an apartment home is $776,500, reflecting a 3.2 percent increase from April 2023 and a 0.1 percent decrease compared to March 2024. Attached home sales in April 2024 totaled 580, indicating a 16 percent increase compared to the 500 sales in April 2023. The benchmark price of a townhouse is $1,127,200, representing a 4.3 percent increase from April 2023 and a 1.3 percent increase compared to March 2024.        

APRIL 2024 PRESALE REPORT: THE MARKET FINDS MOMENTUM

“March saw more developers jump into the market and release new projects to take advantage of increased Spring demand. As such, same-month unit absorptions decreased from February even with sales increasing on an absolute basis. In April, we are already seeing a significant increase in realtor/prospect engagement events at presentation centres to capitalize on a generally more active Spring market.” - Garde MacDonald, Director of Advisory   PRESALE LAUNCHES IN MARCH EXPERIENCE A YEAR-OVER-YEAR INCREASE   March saw a significant increase in presale launches compared to the previous year. In 2024, the early months showed robust activity, in contrast to the slow start experienced in 2023, which only picked up momentum in the summer. This year, March followed historical patterns more closely, with a steady stream of presale projects entering the market. A total of 11 projects were launched, introducing 1,552 units, a remarkable threefold increase from March 2023. Sales in March 2024 reached 416 units, achieving a 27% absorption rate. Noteworthy launches in March included Wesgroup’s second tower at Reign in Metrotown, which attracted considerable interest, selling about 80 homes within 45 days, equating to 22% of its total inventory. Another standout was Ledgeview in Surrey City Centre, which sold 200 units, approximately 63% of its available units. This project's appeal was bolstered by its competitive price per square foot at $850 and a modest 5% deposit requirement, making it a highlight of the month's presale activity. WHOSE POLICY IS IT ANYWAYS? ANALYZING THE EFFECTS OF POPULATION GROWTH ON RENTAL PRICES Canada's recent immigration policy shift, setting a flat target for 2026 and reducing temporary resident intake, aims to tackle the correlation between population growth and housing and infrastructure pressures. Traditionally, immigration has driven demand and economic vitality in Canada, contributing to more consistent growth. However, the nation now grapples with a housing crunch, evident in inflated prices and limited availability, particularly in areas like Metro Vancouver where rental rates surged to 9.5% in 2023. To alleviate housing strains, the government has taken steps such as capping international student numbers and tightening work permit criteria. These actions reflect a broader attempt to balance population growth with housing availability. Yet, adjusting immigration levels alone won't solve rental affordability issues without stimulating new construction. A comprehensive policy approach spanning housing, infrastructure, and healthcare is crucial.   WILL APRIL SURPASS EXPECTATIONS? April is poised to continue the momentum from March. According to MLA Advisory, there are forecasts for ten project launches, offering a total of 1,996 homes. This would mark the second-highest number of home releases in a month since July 2022. The Fraser Valley leads this surge with seven projects in the lineup. Notable launches include Parkway (Building 2) by Bosa Properties and Amson Bloc by Amson Group in Surrey. Parkway initiated sales from late March to early April and aims for a gross blended price per square foot in the mid- to high-$1,100s range. Amson Bloc, comprising two buildings on the border of Panorama and Sullivan Heights, began previews in early April. It boasts custom interior millwork, zebra blinds, and over 3,600 square feet of indoor amenities.