“Sales continue to outperform expectations but rising interest rates will likely dampen home sales activity in coming months.” – BC Real Estate Association
Total sales last month were 28% down to a new total of 1237 from 1722 the previous month but up from 887 of last year the same month. There was an increase of 6% for active listings up to 4588. As demand decreases and active listings increase, we saw sale prices across the Fraser Valley lose 1% this month but up 5% from last year.
Some experts call for interest rate raises to cease, but most expect high rates well into 2025. Most analysts agree that we should expect another rate hike in September. With interest rates the highest in more than 20 years and the quick rise in inflation we’ve seen, it’s no surprise that we are starting to see the gap between inventory and sales (red and blue line below) begin to separate. The larger the gap between these numbers, the greater the pressure is for the market to move down (supply and demand). Overall, we still don’t predict a large drop because of the housing supply and competitive rental market, but we are encouraging our Buyers to have the patience to find a great fit as more choice is coming. Sellers should expect more competition, so professional marketing and a well-prepared house are key to being chosen as the favourite of the fewer Buyers.