Image: Rew.ca / An Abbotsford home for sale on Golf Course Drive with an asking price of $2.3 million. Fraser Valley real estate sales fell by double digits last month despite a policy rate cut of 25 basis points instituted by the Bank of Canada on June 5. The Fraser Valley Real Estate Board says it recorded 1,317 real estate transactions in June, a drop of 13 per cent from May 2024 and a 30 per cent drop over both last year and the 10-year seasonal mark.

By Mike Vanden Bosch

Real estate sales

Fraser Valley real estate sales fall double digits despite Bank of Canada interest rate cut

Jul 3, 2024 | 7:37 AM

FRASER VALLEY — Fraser Valley real estate sales fell last month despite a policy rate cut of 25 basis points instituted by the Bank of Canada on June 5.

According to a news release Wednesday (July 3), the Fraser Valley Real Estate Board says it recorded 1,317 real estate transactions in June, a drop of 13 per cent from May 2024 and a 30 per cent drop over both last year and the 10-year seasonal mark.

As sales remain soft, inventory continues to build for the sixth straight month to 8,350 active listings. Active listings increased 41 per cent over June 2023 and are the highest they’ve been in five years.

“With seasonally slow sales in June and a steady increase in inventory, we’d expect to see affordability improve,” said Jeff Chadha, chair of the Fraser Valley Real Estate Board. “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.”

If there’s a silver lining, FVREB believes overall market have recalibrated. New listings dropped in June, down nine per cent from May, to 3,418. With a sales-to-active listings ratio of 16 per cent, overall market conditions have normalized. The market is considered balanced when the ratio is between 12 per cent and 20 per cent, FVREB said.

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“The June rate cut hasn’t been enough to get buyers off the sidelines,” said FVREB CEO, Baldev Gill. “Current market conditions are such that buyers and sellers are advised to have thoughtful conversations with their realtor and lending professional, rather than relying on media reports about where interest rates may be heading in the future.”

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.

Benchmark prices in the Fraser Valley remained relatively flat in June, with the composite Benchmark price down 0.5 percent from May and down 3.2 per cent from June 2023.

MLS HPI Benchmark Price Activity

• Single Family Detached: At $1,528,900, the Benchmark price for an FVREB single-family detached home decreased 0.1 per cent compared to May 2024 and increased 0.5 per cent compared to June 2023.
• Townhomes: At $851,100, the Benchmark price for an FVREB townhome decreased 0.3 per cent compared to May 2024 and increased 0.8 per cent compared to June 2023.
• Apartments: At $551,100, the Benchmark price for an FVREB apartment/condo decreased 0.7 per cent compared to May 2024 and increased 0.4 per cent compared to June 2023.

The Fraser Valley Real Estate Board is an association of 5,187 real estate professionals who live and work in the B.C. communities of Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock.