The Fraser Valley Real Estate Board has reported that home prices have dropped for the fourth consecutive month.
This is on account of rising interest rates, which has made mortgages more expensive, thereby dampening buyer activity.
“The weaker demand resulted in prices dropping for the fourth consecutive month, most notably for detached homes which ended the month with a benchmark price of $1,594,400, down 3.5 per cent from last month and by 10.2 per cent since peaking at $1,776,700 in March,” the FVREB stated in a media release Wednesday (August 3) about the July 2022 market.
An annual comparison shows another story.
“Residential combined properties benchmark prices are still up year-over-year by 18.1 per cent,” the board reported about July 2022 prices.
For single-family homes, the July 2022 benchmark price of $1,594,400 marks a 3.5 percent decline compared to June 2022, and an increase of 17.8 percent over July 2021.
With regard to townhouses, the typical price stood at $876,500 last month, representing a decline of two percent from June 2022, and a 22.7 percent annual increase from July 2021.
For condos, the benchmark of $553,400 indicates a 2.7 percent decrease from June 2022, and a 21.9 percent rise from July 2021.
The FVREB covers Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock
In July, realtors in these markets sold 993 properties.
The number of transactions last month shows a 22.5 percent decline from June 2022, and a 50.5 percent drop compared to July 2021.
Meanwhile, active home listings totalled 6,413 in July, relatively unchanged from June, and up 30.9 percent from July 2021.
“It is important to keep in mind that real estate is and always will be an asset with considerable upside over the long-term,” board president Sandra Benz said in the media release.