The Fraser Valley Real Estate Board (FVREB) processed a total of 1,718 sales in June, an increase of 113 per cent compared to sales in May and an increase of 32 per cent compared to the 1,306 sales during June of last year.
Sales were 6.4 per cent below the ten?year average for June.
“June’s numbers clearly indicate that the market is functioning in this challenging new environment and we’re returning to more typical activity levels,” said Chris Shields, resident of the FVREB.
“It’s due to a combination of factors. Obviously, very low interest rates, and pent-up demand from the previous three months when the market was on hold," Shields said.
New Canada Mortgage and Housing Corp. (CMHC) rules that came into effect on July 1st that make it harder to qualify for mortgage insurance may have also spurred some buyers to close before the deadline, he added.
The CMHC measures include limiting the gross debt service ratios on homebuyer loans to 35 per cent, from 39 per cent, and limiting the total debt service ratio to 42 per cent from 45 per cent. A major change is an increase in the minimum credit score for a potential borrower to 680, from 600, which is expected to remove a number of first-time buyers from the market.
Homebuyers are becoming more comfortable with the technology that real estate agents are using to list, show and sell homes safely during the pandemic, Shields said.
The Fraser Valley Board received 3,456 new listings in June, a 57 per cent increase compared to May’s 2,207 new listings and a 23 per cent increase compared to June of last year. June finished with 7,063 active listings, an increase of 9 per cent compared to May and a decrease of 17 per cent year-over-year.
It now takes from 30 to 37 days for a new listing to sell, the board reports.
At $994,500, the June benchmark price for a single-family detached home in the Fraser Valley increased 0.4 per cent compared to May and was up 3.6 per cent compared to June 2019.
The benchmark price for a townhouse inched up from May to $559,600, while condo apartment prices were 3.3 per cent higher than a year earlier, at $453,300, the board reports.