Buyers Are No Longer Waiting for Certainty, They’re Waiting for Better Deals
The Fraser Valley housing market continued its slow grind lower in July, with benchmark prices declining for the fourth consecutive month despite fewer homes coming to market.
The Fraser Valley Real Estate Board recorded 1,089 sales in July, down 5% from June and 9% below the same month last year. New listings also slowed considerably, falling 14% month-over-month, while active inventory edged down to 10,044 homes.
Normally, declining inventory would begin supporting prices. Instead, benchmark prices fell another 0.8%.
So we’re seeing the challenge facing today’s market is no longer simply one of supply. Demand remains weak enough that even with fewer homes available, buyers continue to hold the upper hand.
July saw 2,836 new listings come to market, down 14% from June and 18% below July of last year. Active inventory also declined modestly to 10,044 listings.
While inventory is slowly tightening, it remains approximately 32% above the 10-year seasonal average. Buyers continue to enjoy one of the strongest selections of available homes we’ve seen in years.
The sales-to-active listings ratio remained unchanged at 11%, firmly within buyer’s market territory. We’re no longer seeing inventory grow rapidly, but we’re also not seeing demand improve enough to shift market conditions.
The composite benchmark price declined another 0.8% in July to $877,600.
Compared to July 2025, benchmark prices are now down 7%.
By property type:
Detached Homes
- Benchmark Price: $1,335,200
- Down 1.1% from June
- Down 8.3% year-over-year
Townhomes
- Benchmark Price: $757,300
- Down 0.9% from June
- Down 7.1% year-over-year
Apartments
- Benchmark Price: $469,500
- Down 1.4% from June
- Down 9.1% year-over-year
Outside of a handful of isolated neighbourhoods, nearly every major Fraser Valley market experienced further price declines during July.
This has become a broad market trend rather than weakness confined to one property type or municipality.
Average sale-to-list-price ratios actually improved during July.
- Detached: 95.9%
- Townhomes: 97.6%
- Condos: 96.5%
At first glance, those numbers appear inconsistent with falling prices.
The explanation is that many sellers who are receiving offers have already adjusted their asking prices closer to market value before negotiations begin. Put simply,the pricing strategy has improved.
That doesn’t mean buyers have become more aggressive on individual transactions. Rather, sellers who refuse to meet the market often aren’t receiving offers at all. The result is that completed sales are occurring closer to asking price, even while benchmark values continue moving lower.
The biggest change I’m seeing isn’t in the statistics, it’s buyer behaviour.
August is traditionally one of the slowest months of the year, and this year the seasonal slowdown is being amplified by an already cautious market.
Showings are down noticeably. Where buyers once wanted to reschedule a missed showing within a few days, today’s conversations sound very different.
“Maybe we’ll look at it in a few weeks.”
“Let’s see what’s still available next month.”
“There isn’t any rush.”
That urgency simply isn’t there. Many buyers believe better opportunities are still ahead, and they’re behaving accordingly.
Interestingly, sellers are also slowing down.
Many homeowners recognize the market has changed, but with August traditionally being quiet, there’s little incentive to make major pricing adjustments today.
Instead, many appear willing to wait until the fall market before repositioning. The problem is that buyers are becoming increasingly vocal about expecting discounts;they’re smelling blood in the water.
That creates a widening disconnect between what buyers are willing to pay and what sellers are prepared to accept. So until one side adjusts, transactions will likely remain sluggish.
Selling times also reflected the slower market.
Detached Homes
- Average: 42 days
- Median: 27 days
Townhomes
- Average: 36 days
- Median: 24 days
Condos
- Average: 41 days
- Median: 28 days
Compared with June, detached homes took significantly longer to sell, while townhomes and condos also saw modest increases in median selling times.
Homes are still selling when they’re priced appropriately, but buyers are taking longer to make decisions and fewer properties are attracting immediate attention.
Failed listings remained relatively stable across most markets.
One exception was Langley condominiums, where failed listings increased from 113 in June to 141 in July.
Overall, though, this wasn’t a month defined by a surge in expired listings. Instead, sellers continue to rely on relisting strategies as they search for the right price point in a market with relatively few comparable sales.
The Bank of Canada held its overnight lending rate unchanged for a sixth consecutive meeting on July 15. The next policy announcement is scheduled for September 2.
At the same time, five-year Government of Canada bond yields have moved higher, rising from roughly 3.0% at the beginning of July to around 3.2% as of this writing. That puts upward pressure on fixed mortgage rates, even without changes to the Bank of Canada’s overnight rate.
Trade uncertainty also remains elevated. Tariff negotiations continue to create uncertainty for Canadian businesses, limiting investment and weighing on broader economic confidence.
Inflation, particularly food inflation, continues squeezing household budgets, leaving many families with less discretionary income.
Taken together, these factors help explain why improving affordability alone has not translated into stronger housing demand. People are still feeling financially stretched.
Last month I said buyers were patiently waiting. This month, I think we’re moving beyond patience; many buyers now believe waiting is working.
Every month that prices soften reinforces the idea that there is little downside to taking more time., and that mindset becomes self-reinforcing.
Unless something materially changes, whether that’s stronger economic growth, lower borrowing costs, or a meaningful improvement in consumer confidence, I expect the market to continue softening through the remainder of the summer.
Could we see stronger activity in the fall? Absolutely.
Historically, September and especially October often bring renewed buyer activity, but it would take a meaningful shift in market psychology to reverse the trajectory we’re currently on.
For now, I remain cautiously optimistic over the longer term, but I think the path through the next couple of months is likely to remain slow.
For buyers, conditions remain exceptionally favourable. Inventory is still well above normal, negotiating power remains firmly on your side, and there is very little pressure to make rushed decisions.
For sellers, realistic pricing continues to be the single biggest factor separating successful sales from listings that simply sit on the market. Buyers have options, they’re taking their time, and they’re increasingly willing to wait for the right opportunity.
If you’re wondering what these conditions mean for your home’s value or your plans to buy or sell, I’d be happy to walk through the numbers and help you build a strategy that fits today’s market.
