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Are we seeing a reaction to the recent interest rate hikes, or just your typical summer slowdown?
 
With 1,368 sales in July 2023, we saw a decrease of 29% compared to June 2023, but a year to year increase of 38% more sales than July 2022, and 19% fewer sales that the 10 year average for July.  This recent decrease in sales numbers is most likely due to last months interest rate hike, and it is pretty safe to say the market has been reacting directly to any rate changes. This does mean that if rates suddenly start to drop, you can bet real estate activity will increase quite quickly and prices will likely rise with it.
 
With 2,225 new listings in July 2023, we saw a 16% decrease compared to June 2023, and almost exactly the same as the 10 year average.  The total inventory also increased slightly by 4% compared to June 2023, but that is almost certainly due to fewer sales and not more listings.
 
Much of the activity that did happen in July 2023 was in the attached homes sector of the market, with detached homes stalling quite a bit. Only 17 of every 100 detached homes sold, making it a balanced market. Townhomes and Condos on the other hand were still in Seller’s Market territory with 45 of 100 townhomes and 36 of 100 condos selling. Anything above 20 is a Seller’s Market, between 12 and 20 is a Balanced Market and below 12 would be a Buyer’s Market, which has been an extremely rare sight in the Fraser Valley Real Estate market for the past 10 years.
 
While home prices did continue to increase through July 2023, it seems in my day to day observations that they are beginning to come down, and I would not be surprised to see August 2023 with lower prices than July 2023, at least in the detached homes.
 
If you are looking to purchase a home and not sell anything, I would say that time is on your side for now (as long as interest rates don’t go up again!) It seems unlikely that prices will come down a truly significant amount to make waiting worth it, but it is possible that patience could pay off. I will repeat once again though, waiting is a bit of a gamble in case rates do increase again.
 
If you are looking to both sell and buy, I would say the same advice that I always give. The best time to make a move, is when it makes sense for you and your family. Things end up becoming relative if you are selling and buying in the same market, and right now there is even a possibility that the gap between detached homes and townhomes is on the lower side, as we are starting to see more expensive homes come down in price quicker than lower priced homes.
 
If you are selling and downsizing, interest rates may not be as much of a concern if you are going to just have a small mortgage, or no mortgage at all. As prices are looking to be on their way down, selling sooner will likely net you more cash in your pocket before the value of your current home diminishes too much.
 
If you are just selling and not purchasing anything, waiting for rates to drop would be your best bet, but if you can’t wait for an unknown date to come (could be as long as a couple years), sooner is likely better as you will want to maximize your homes worth. If prices are falling, you will most likely get more money today for your home than you will in a month or two.

Overall, it is not a bad time to make a move happen. Your situation, however, will always be unique, so reach out today so we can start making a custom plan to make your next move as stress free as possible!