The real estate market in both Metro Vancouver and the Fraser Valley continues to favour buyers.
Inventory levels for homes on sale are reaching highs not seen since 2019.
With reduced competition among buyers, overall sales are down.
In Metro Vancouver for June, total sales were down 19.1 per cent from June last year, and 23.6 per cent below the 10-year seasonal average.
“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their properties to market,” said Andrew Lis, Greater Vancouver Realtors’ director of economics.
“This dynamic is bringing inventory levels up to a healthy range not seen since before the pandemic.
“This trend is providing buyers more selection to choose from and driving all market segments toward balanced conditions.”
There are more than 14,000 properties currently listed in Metro Vancouver, which is a 42 per cent increase from June 2023.
“With an interest rate announcement from the Bank of Canada in July, there is a possibility of another cut to the policy rate this summer. This is yet another factor tilting the market in favour of buyers, even if the boost to affordability is modest,” Lis said.
“But June’s lower-than-normal transaction volumes suggest many buyers remain hesitant, which has allowed inventory to accumulate and has kept a lid on upward price pressure across market segments.”
Lis said although buyers remain hesitant, homes that are “well-priced” are still selling quickly.
The benchmark from Metro Vancouver residential properties is currently $1.2 million, which is a 0.5 per cent increase from last year.
All types of home sales are down, including apartments, detached and attached homes.
Although inventory is up and sales are down, prices have remained relatively flat, the board said.
Over in the Fraser Valley, the real estate market is close to Metro Vancouver’s.
The policy rate cut by the Bank of Canada on June 5 was not enough to rally home sales.
The Fraser Valley Real Estate Board said 1,317 homes were sold in June — which is a 13 per cent decrease from a month prior and a 30 per cent decrease from June 2023.
While sales are low, inventory in the Fraser Valley has reached more than 8,300 listings, which is a five-year high.
“With seasonally slow sales in June and a steady increase in inventory, we’d expect to see affordability improve,” said Jeff Chadha, the Fraser Valley Real Estate Board’s chair.
“However, prices in the Fraser Valley remained relatively flat. That said, despite slow sales, properties that are well-priced are finding buyers, and are subsequently selling within three to four weeks.”
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New listings did drop slightly in June compared with May but with a “sales-to-active” ratio of 16 per cent, experts said market conditions are balanced.
“The June rate cut hasn’t been enough to get buyers off the sidelines,” Fraser Valley Real Estate Board CEO Baldev Gill said.
“Buyers and sellers are advised to have thoughtful conversations with their Realtors.”
Across the Fraser Valley in June, the average number of days to sell a single-family detached home was 22, while a townhome was 20. Condos took on average 30 days to sell.
The benchmark for Fraser Valley homes is broken down by type of home by the real estate board, including $1.52 million for single-family detached, $850,000 for townhomes and $551,000 for apartments.
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