June Market Review: Rate Cut Fails to Spur Sales

The much-anticipated policy rate cut by the Bank of Canada in June did little to instill confidence in buyers in the Fraser Valley last month.

Following a 25-basis point cut on June 5, the Board recorded 1,317 sales in June — down 13 per cent from May and more than 30 per cent below both last year and the 10-year seasonal average. Sales were the third slowest for June in a decade.

While sales slowed, inventory continued to build for the sixth straight months, with active listings up six per cent over May and the highest they’ve been since June 2019, at 8,350. New listings held steady month-over-month, down 0.2 per cent to 3,418.

“With seasonally slow sales in June and a steady increase in inventory, we’d expect to see affordability improve,” said FVREB Chair, Jeff Chadha. “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.”

Sales-to-Active Ratio

With the current imbalance between supply and demand in the Fraser Valley market, the overall sales-to-active listings ratio dropped from 19 per cent in May to 16 per cent in June, remaining in balanced market territory, but shifting towards a buyer’s market.

The market is considered balanced when this ratio is between 12 and 20 per cent.

Detached: 15% (down 3% from May)
Townhouses: 26% (down 4% from May)
Apartments: 21% (down 3% from May)

Benchmark Prices

Slow sales and building inventory have kept a lid on upward price pressure, with the composite Benchmark price in the Fraser Valley remaining relatively flat, down 0.5 per cent in June to $1,001,700. Benchmark prices for detached, townhouses and condos also remained flat from May to June.

Composite: $1,001,700 (down)

Detached: $1,528,900    0.1% (down)
Townhouse: $851,100   0.3% (down)
Apartment: $551,100   0.7% (down)

Days on Market

The average number of days to sell a single-family detached home in June was 22 (down from 25 in May), while a condo was 30 (up from 23 in May). On average, townhomes sold in 20 days — no change from May.

To learn more about the FVREB Market Data for June, watch Eye on the Market with Board Chair, Jeff Chadha.

For a more detailed look at the Fraser Valley market, click here to view the Monthly Statistics Package.