August 2023 Fraser Valley Real Estate Market Insights
Welcome to the August 2023 Fraser Valley Presale Pulse episode, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, pre-sale, and resale trends over the last 30 days affecting the local real estate market across the Fraser Valley. In this month's episode of the Pre-Sale Pulse:
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Limited Pre-sale Product Release Despite Favourable Supply Conditions
The Fraser Valley pre-sale market saw limited new product introductions in July, despite favourable conditions. One significant hurdle is the ongoing construction boom in the region, making it difficult for developers to find available construction companies with the capacity to take on additional projects. Additionally, high land costs posed a barrier to bringing new developments to market, even in the face of appreciating property values. The interest rates, exceeding 9% per year, translated to substantial expenses, further motivating developers to wait for potentially higher achievable values. As a result, the market saw a preference for new product releases from developers with existing long-term land holdings or those with established reputations and strong sales and marketing strategies. This strategy enables them to engage with a more deeper pool of buyers who can contribute to achieving the necessary presale values.
Sellers' Advantage Holds During Summer Slowdown in the Fraser Valley Resale Market
The Fraser Valley's resale market experienced a slowdown in sales during July with 1,368 transactions, marking a 29.3% decrease from the previous month. Despite this seasonal decline, sales remained robust with a notable 37.8% increase compared to the same period last year. The recent 25 basis points increase in the interest rate likely contributed to the sales moderation. Interestingly, the sales-to-active listings ratio for townhomes and apartments held strong at 45% and 36%, respectively, indicating the market still favours sellers. This suggests that the slowdown may be due to buyers taking a bit more time before purchasing rather than a loss of interest in the market. In terms of supply, July brought 2,855 new listings, representing a 16.6% decrease from June but a significant 19.7% increase compared to July of the previous year. Overall supply saw a 4.3% uptick from June, albeit still 3.3% lower than the previous year. Despite the decrease in sales, benchmark values, appreciating by 0.5% from the previous month and moving closer to 2022 levels.
Pre-Sale Projects Covered in this Episode
- Lucent - Landa Global Properties
- Sequoia - ML Emporio Properties
- Pura - Adera
- Latimer South Village Condos - Vesta Properties
- Kensington Gate - Quadra Homes
Links mentioned in this episode:
- August 2023 Pre-Sale Pulse Report
- MLA Advisory Services and Sample Reports
- Contact Advisory
- Subscribe to MLA Newswire
Subscribe to the MLA Canada YouTube Channel or find the Pre-Sale Pulse on your favourite audio streaming platform: Apple, Spotify, Amazon Music, iHeart Radio
