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The market has been very slow all year, and June 2019 was certainly not going to break this trend.  The total number of sales in the Fraser Valley for June 2019 was 1,306 sale; 29.3% lower than the 10 year average, and the lowest number of sales in June since June 2000! Keep in mind that there have been many more homes built in the last 19 years, so in reality, this June was actually slower than June 2000.

Not only were sales lower compared to the 10 year average but were also down 13.9% month to month compared to May 2019.  This was a little surprising, as May was beginning to look as if things were picking up, however, the stalemate between buyers and sellers is remaining at, just that, a stalemate.  Many sellers are holding off to see what the market will do, but when we see prices go down through the spring market, it would be quite easy to speculate that they will go down more over the summer fall and winter as well.

If you are thinking of selling, but on the fence right now, it really depends on what your plans for your next home will be.  If you are planning on making a move up, meaning a larger, more expensive home, now may be a great time to do so. If you are thinking about downsizing, I would say that you likely have some time to make a decision and your net proceeds from your home will likely remain a similar number despite the falling prices.

It is always impossible to truly know what will happen in different segments of the market, but at the end of the day, most homes will likely decrease in the near future.  

Condos will likely drop in value, though the lowest valued of these homes could remain stable as the overall affordability is still a large concern for first time buyers and only having a select number of this type of home to choose from keeps the demand at a higher level compared to the supply.

Townhomes are a little more interesting at this point. Normally I would speculate that the prices should be coming down more than the rest of homes in the near future, however, demand is highest for townhomes compared to all others as you have two large groups of buyers who are interested. Downsizers coming from larger homes, and growing families who are upgrading from their first homes. The catch to this is that most downsizers are not looking for older townhomes, so anything built before 1990 will likely decrease in value similar to condos in the same price range.

Detached homes are in an interesting position right now. Typically, single family homes have been the majority of sales in any given year, however, this has shifted over the last couple of years as affordability continues to be an issue.  Regardless, I still think that in the long run, detached homes will be the best investment, as you own the land on which the home sits and the ability to build on that land will keep the value in the long run.

Buyers are at a great opportunity in today’s market as we are in a balanced market with 16.9% of all homes that were available in June 2019 selling in that month. Anything from 12%-20% is considered balanced. Anything below would be a buyer’s market and anything above is a sellers market.

Buyers had 8,516 homes available in the Fraser Valley to choose from at the end of the month, which is a 19.3% increase from one year ago in June 2018. This is clearly due to many buyers holding off waiting for prices to decrease.

At the end of the day, despite the current market conditions, your situation is unique and it may actually be a great time to make a move happen, as homes that are priced correctly are still selling, and as a buyer, you get an excellent selection of homes to choose from!

Get in touch today to go over your unique situation and we will start making that plan to get you into the home you want to be in!