Another month has come and gone, and just like that, we are eight months into 2024. Yet, we continue to see the same trends in the real estate market that have persisted all year. Slower-than-average sales and higher-than-average new listings remain the norm, and July 2024 was no exception.

With 1,106 sales in July 2024, we saw 25% fewer sales than the 10-year average for the month, 10% fewer than in July 2023, and 7% fewer than in June 2024. Despite the last two Bank of Canada rate announcements both lowering interest rates, buyers are still hesitant to re-enter the market. The last couple of years of inflation have not only affected homebuyers in terms of pre-approval amounts but have also tightened the wallets of most Canadians. While some relief is emerging due to policy changes, it will take time for individual finances to stabilize across the board, allowing more buyers to return to the market. Activity will pick up again—the question is, when?

The silver lining of slower sales is that we are building our inventory of homes for sale. Higher inventory typically leads to more stability in pricing and, more importantly, a fairer market where buyers can take their time and complete proper due diligence before purchasing a home. With 2,977 new listings in July 2024, there were 23% more than the 10-year average for the month, 1% more than last month, and 23% more than in July 2023.

New listings have a significant impact on total inventory numbers, which have continued to increase every month in 2024. July 2024 ended with 6,821 homes available for sale—22% more than the 10-year average for July, 3% more than just a month ago, and 36% higher than a year ago in July 2023.

Since we are discussing sales and new listings, we should also address the sales-to-active listings ratio, or how many homes out of every 100 listed sell in a month. In July 2024, only 16 out of 100 homes sold, firmly placing us in balanced market territory. According to the Fraser Valley Real Estate Board, a buyer’s market occurs when fewer than 12 out of 100 homes sell, a balanced market falls between 12 and 20, and a seller’s market is when more than 20 homes sell out of 100. By property type, we see a mix of markets: detached homes are in a buyer’s market with just 11 out of 100 selling, condos are in a balanced market with 18 out of 100 selling, and townhomes remain in a seller’s market with 25 out of 100 selling.

Several factors contribute to the disparity between property types, with affordability being a primary consideration. Detached homes are the most expensive, and while most people would love to own one, affordability keeps them out of reach for many buyers.

You might expect condos to have the highest sales due to their general affordability, but this isn’t reflected in the sales ratio. Recent changes to short-term rental regulations in the Lower Mainland have flooded the market with condos, driving the ratio down.

Townhomes, on the other hand, have been the highest-demand property type in the Fraser Valley for some time. This is likely due to the same affordability challenges affecting detached homes and condos, but there’s another factor at play: who is buying each property type? Townhomes are popular among two main groups: upsizers and downsizers. Many buyers aspire to own a detached home but settle for a townhome as a more affordable compromise, offering plenty of space for growing families. Meanwhile, many empty nesters looking to downsize choose townhomes to maintain some sense of detached living.

Overall, despite lower-than-average sales, this could be a good time to make a move. With ample time for decision-making and market conditions creating less pressure, home buying and selling are actually a little less stressful than usual right now.