Real estate sales are still higher than normal in Langley and its neighbours, but the breakneck pace of the past year slowed noticeably in June, according to data from the Fraser Valley Real Estate Board (FVREB).
“In June, we shifted from an extreme seller’s market to a strong seller’s market,” said Larry Anderson, president of the FVREB.
More than 40 per cent of homes listed for sale last month sold, a very high percentage, but the markets were settling down.
“For the first time in months, we’re starting to see price reductions,” he noted.
Single family homes were the area where price increases have slowed down the most, stopping or even slipping slightly from May’s numbers in some communities.
In Langley, the benchmark price of a single family home is $1.383 million, still up a staggering 32.4 per cent from the same month last year, but only a 0.3 per cent increase from May.
The benchmark price is the average price for a “typical” single family home in the area.
However, the average price slipped 6.1 per cent in a month, dropping from more than $1.46 million down to $1.373 million, below the benchmark rate.
When the average price is dropping and the benchmark is stable or rising, it typically indicates that sales of high-end, expensive houses have slowed down.
Other types of housing in Langley saw modest month-to-month increases in benchmark prices.
Townhouses were at $691,400 in June, up 1.6 per cent from the month before and 20.4 per cent year-over-year.
Condos were selling for $470,600, up 2.5 per cent from May, and 18 per cent from the same month in 2020.
Other communities nearby saw similar changes in their real estate prices, with some areas, like Abbotsford, Mission, and North Delta seeing very slight drops in their benchmark prices for single family housing, and in some areas, even townhouses. The price drops were less than two per cent, typically.
Sales in Langley were down from May, with 154 single family homes changing hands compared to 191 a month before, 125 townhouses compared to 148 a month before, and 145 condos, down from 170.
Those numbers are still sharply higher than they were in 2019, the last year before the pandemic upended the market.
In June of 2019, 76 single family homes sold, 74 townhouses, and 59 condos.
Anderson said that for things to get back into balance, only more houses put up for sale can flatten prices.
“A lack of supply continues to be the single largest factor affecting the market,” he said. “Simply put, to meet current demand and get back to balance, we need about 3,500 more active listings in our region.”