While detached home sales taper off, price of condo units rises 10.3% in single month
Like in June’s Greater Vancouver housing market, the start of the summer slowdown in Fraser Valley real estate did not seem to apply to the condo sector, according to June 5 statistics from the Fraser Valley Real Estate Board.
The board reported 2,571 sales of all property types on the Multiple Listing Service® (MLS®) in June, including residential, commercial, retail and industrial. This is a decrease of 10.2% compared with June of last year, 5% lower than in May 2017.
Looking at residential transactions only, the 2,308 home sales were 9.2% lower than the hot June seen in 2016, and 4.5% below May’s figures. However, this overall figure belies the huge discrepancies between the single-family home and condo markets.
There were 3,130 new home listings in June, virtually flat with last year at a 0.6% rise over June 2016, and a 2.2% fall since May 2017.
This took total active inventory for the Fraser Valley to 3,683 homes for sale, a fall of 0.2% year over year, but up 6.4% compared with May 2017 because of slower take-up.
Home Type Breakdown
Detached homes and condo-apartment units are experiencing very different markets right now, with townhomes and other attached properties sitting somewhere in the middle.
Fraser Valley single-family home sales fell 17.9% year over year to 1,052 units in June, a drop of 11.4% from the previous month.
Townhomes, row houses and duplexes, etc, saw 573 units exchange hands last month, which is a fall of 12.7% since May and 7.6% lower than one year previously.
However, condo sales surged 13.1% higher than even last June’s hot market with 683 sales in June 2017. This is also 12.2% higher than May this year.
The number of new condo listings reveals part of that story – last month they rose 19.6% year over year, although they still numbered 2.7% fewer than in May. Because of the high rate of absorption, total active condo listings as of the end of June stood at just 637, 25.3% lower than in June 2016.
Prices by Property Type
The benchmark price for a typical Fraser Valley home (all property types combined) is now $703,900, which is a new record at 13.9% higher than a year ago and 2% higher than May.
A typical Fraser Valley detached house has a benchmark price of $934,600, up 8.4% over a year ago and up 2.1% from the previous month.
Townhomes are now typically priced at $467,000 in the Fraser Valley, an increase of 20.6% year over year and a monthly rise of 1.8%.
However, condo prices tell a different story, linked to the huge demand for this property type. The current cost of a typical unit in the region is a staggering 40.3% higher than June last year, which is a rise of 10.3% in a single month.
“We knew that there was a growing appetite for our attached properties, but this month was exceptional,” said Gopal Sahota, FVREB president. “I think one reason demand has continued to be so strong for our region is that we have such diverse, robust inventory to help buyers find the right home even in a more complex market like this one.”