Property sales dropped over 35 per cent in April, according to the Fraser Valley Real Estate Board (FVREB) monthly figures. It’s the first time in two years that sales have fallen below the 10-year average.
The board processed 1,637 sales last month, a decrease of 46 per cent from April, 2021, and a decrease of 37 per cent from March.
“We would typically see a flurry of activity around this time of the year, however that’s not been the case so far, ” said Sandra Benz, FVREB’s president.
“While it’s still too early to say whether this trend will endure, the slowing of sales combined with an increase in active listings is helping to restore a semblance of balance to the market, which is encouraging for homebuyers.”
A total of 3,622 new listings were received last month, a decrease of 28 per cent from April 2021, and a decrease of 21 per cent from March. Total inventory by the end of April sits at 5,387, 15 per cent higher than March.
“In an effort to stem inflation worries, the government has moved quickly to implement interest rate hikes,” said FVREB CEO’s Baldev Gill.
“In fact, we’re already back to rate levels we haven’t seen since 2019. This will put an added burden on homebuyers, particularly on first-timers, who will have to meet more stringent stress test conditions.
“Ultimately, this will likely result in a decrease in demand, which may slow price growth, however it will do little to resolve the underlying issue of low inventory.”
It took an average of 16 days to sell a single-family detached home, 13 days for a townhome, and 13 days for an apartment in April, according to the board.
- Single Family Detached: At $1,731,000, the Benchmark price for an FVREB single-family detached home increased 0.2 per cent compared to March 2022 and increased 33.8 per cent compared to April 2021.
- Townhomes: At $902,500, the Benchmark price for an FVREB townhome increased 1.8 per cent compared to March 2022 and increased 38.3 per cent compared to April 2021.
- Apartments: At $649,500 the Benchmark price for an FVREB apartment/condo increased 1.0 per cent compared to March 2022 and increased 35.6 per cent compared to April 2021.