Fraser Valley Real Estate Market: A June 2025 Overview

June is typically a buzzing month for real estate in the Fraser Valley, with a 10-year average of about 1,673 homes changing hands. However, June 2025 has once again deviated from what we consider "normal" market activity.

With just 1,082 residential sales recorded last month, we found ourselves 35% below the 10-year average. This figure also represents an 8% decrease compared to June 2024, although we did observe a 2% increase from May. While any month-over-month bump is welcome, the real story lies in the comparison to our long-term averages, which clearly indicates that the market is still operating well below its usual June pace.

The narrative of slower sales continues to be paired with an abundance of new listings. June 2025 saw 3,113 new properties come onto the market. This is 10% more than the 10-year average for June, a notable point as it edges us closer to that average than we've been in recent months. It seems more and more sellers are holding off on selling instead of listing their homes at unreasonably high prices.

Inventory and Sales-to-Active-Listings Ratio

Speaking of inventory, the consistent pattern of higher-than-average new listings alongside lower-than-average sales means the total number of homes available on the MLS continues its climb. We wrapped up June with 8,102 homes for sale, marking a negligible 0.8% decrease month-over-month, a 31% increase year-over-year, and a substantial 65% more than the 10-year average for June. Looking back through Fraser Valley real estate history, a comparable level of inventory has only occurred during a four-month period back in 2008.

When we consider the relationship between available homes and actual sales, we arrive at the sales-to-active-listings ratio – essentially, how many homes sell for every 100 listed. In June, 13% of homes listed actually sold. This places us firmly at the lower end of a balanced market. For reference, anything below 12% is generally a buyer’s market, 12-20% is balanced, and above 20% indicates a seller’s market. June’s ratio was the exact same as May’s, but 32% lower than last June’s 19% ratio. Delving deeper into property types, detached homes remained in a buyer’s market, with only 11% selling in June 2025. Condos found themselves close to buyer's market territory at 13%, while townhomes, as often observed, maintained more activity at 18%. Townhomes typically attract a broader pool of buyers, as they appeal to those transitioning from condos and those downsizing from detached homes.

Pricing and Affordability

Overall pricing has continued its slow, steady decline over the past two and a half years, with only minor upticks in isolated months. June 2025 witnessed a 1.2% decrease compared to May 2025 and just over 5% lower than one year ago. This is once again priming the market for buyers to start buying again, as interest rates are also down year-over-year. Buying a home in June 2025 is approximately 18% more affordable than it was just a year ago, considering a 5% decrease in prices and the observed drop in mortgage rates.

Despite these improvements in affordability over the last year, buyers have largely remained on the sidelines. Tariff talks seem to have picked up again after a couple months of quiet, and there's still a pervasive sense of uncertainty in the air that is deterring a higher volume of buyers. Concerns about job security, the rising cost of living, and persistent inflation continue to weigh heavily on the minds of many prospective purchasers. Until these broader economic factors stabilize, we are likely to continue seeing similar market trends.

Advice for Buyers and Sellers

If you are considering making a purchase, now could be a particularly opportune moment. As we've highlighted, affordability has been steadily improving over the past couple of years, with both interest rates and home prices trending downward. The "golden question" of how far they will go remains unanswered, but what is clear is that the current conditions for buying a home are quite favorable. While there's always a chance prices might dip further or interest rates decrease even more in the coming months, the present reality offers undeniable advantages.

For those looking to sell, your optimal path truly hinges on your unique circumstances. While it's reasonable to expect prices to eventually rebound, the exact timing remains elusive. Many industry experts had anticipated a more robust recovery by now. Therefore, if you are holding out for higher home values, there’s no certainty on how long that wait might be. We've seen in recent months that many would-be sellers who waited, hoping for an increase, found themselves ultimately selling for less than they could have at the beginning of the year.

If a move is on your mind for the near future, let's connect and discuss the best strategy for your situation.