June 2024 – Fraser Valley Real Estate Market Snapshot

Summertime Blues

The month of June witnessed the first decrease in interest rates in over three years. Despite this favorable economic indicator, there was still a noticeable dip in sales activity and average prices for both single-family homes and townhouses. Surprisingly, the condo sector defied this trend, showing an increase in average value both month-to-month and year-over-year. This sector stands out as the most affordable and attainable product type currently available in the market.

While sellers might be experiencing the blues this summer due to the sluggish sales, buyers are presented with a unique opportunity. This season has ushered in a buyer’s market, characterized by an increased supply of available homes and a broader selection to choose from. Additionally, the power to negotiate is now tilted more in favor of buyers, allowing them to potentially secure better deals. However, this favorable window may not last long. Rumors of further interest rate cuts are circulating, which could lead to a surge in buying activity once again.

The recent quarter-point reduction in interest rates was insufficient to significantly lower borrowing costs for most potential buyers. Nevertheless, if interest rates continue to decline, we could see a swift shift in the market dynamics, similar to previous cycles in the Fraser Valley. A further reduction in rates would enhance affordability and stimulate buyer interest, potentially ending the current buyer’s market.

If you are considering purchasing property in the Fraser Valley, now is the opportune moment to act. The current market conditions favour buyers, but this advantage may be short-lived given the potential for further economic shifts on the horizon. Don’t miss out on the chance to secure a property while the scales are tipped in your favour.