The real estate market in Mission, BC, reflected broader trends in the Fraser Valley in August 2024. As homebuyers continued to navigate affordability challenges, sales dropped significantly, despite two interest rate cuts by the Bank of Canada earlier this year. With buyers waiting for more favourable conditions, the market is inching closer to buyer’s market territory.
Slow Sales and Market Cooling in Mission
In August 2024, Mission recorded 25 sales for single-family detached homes, down 32.4% from August 2023, when there were 33 sales. For townhomes, only 7 sales were recorded, showing no change from last year. Apartment sales saw the biggest decline, with only 9 units sold, a significant 44.4% decrease compared to 16 sales in August 2023. This slowdown mirrors the broader trend in the Fraser Valley, where sales are down across all property types.
The number of new listings in Mission also dropped sharply, with 71 new listings for detached homes, down 23.1% from last year. The reduction in new listings is reflective of seller hesitation as many await improved market conditions before listing their homes.
Buyers Waiting on the Sidelines
With a sales-to-active listings ratio of 10%, Mission is verging on a buyer’s market for single-family homes. Townhomes and apartments are in similar territory, with sales-to-active listings ratios hovering between 10% and 13%. A balanced market typically has a ratio between 12% and 20%, and anything below that favors buyers.
Buyers in Mission continue to hold out in hopes of additional rate cuts by the Bank of Canada, despite two earlier cuts that have yet to spur significant buyer activity. This wait-and-see approach is reflected in the sluggish sales and an increasing inventory of unsold homes.
Pricing Trends in Mission
Despite the slow sales, prices in Mission have remained relatively steady. The Benchmark Price for a detached home in Mission is now $1,045,600, down just 0.4% from July and a 1.5% decrease from August 2023. For townhomes, the Benchmark Price sits at $685,700, showing a 4.3% increase compared to last year. Apartments in Mission have also seen slight year-over-year growth, with the Benchmark Price of $466,800, reflecting a 2.0% increase over August 2023.
While prices have dipped slightly for detached homes, the relatively stable pricing for townhomes and apartments indicates that sellers are holding firm. This is in contrast to the Fraser Valley as a whole, where pricing has remained flat or slightly decreased year-over-year.
Days on Market
Homes in Mission are spending longer on the market, reflecting the overall cooling of the real estate sector. Detached homes in Mission took, on average, 59 days to sell, a considerable jump from the 39 days recorded in August 2023. Townhomes averaged 56 days, while apartments were on the market for 65 days before being sold.
These extended selling times offer buyers an opportunity to negotiate, as sellers may be more willing to make concessions to close a deal.
Mission Stats Aug 2024
Is Now the Time to Buy in Mission?
With a slower market and lower sales, buyers may find better opportunities in Mission. While affordability challenges remain a concern, the relatively steady prices and increasing inventory of unsold homes create an environment where buyers could secure better deals, especially for those willing to negotiate.
Baldev Gill, CEO of the Fraser Valley Real Estate Board (FVREB), noted that “Buyers continue to wait on the sidelines in anticipation of more cuts to the Bank of Canada’s policy rate.” For those ready to enter the market, consulting with a REALTOR® and financial advisor to lock in favourable financing terms could be beneficial in the long run, particularly if the market remains buyer-friendly for the foreseeable future.
The real estate market in Mission, BC, continues to reflect broader regional trends, with a slowdown in sales, extended days on market, and slight price adjustments. However, buyers in Mission have an opportunity to take advantage of the current market conditions, as the town teeters on the edge of a buyer’s market. As we head into the final quarter of 2024, Mission’s real estate market will be one to watch for both buyers and sellers.
For those considering entering the Mission market, now may be the time to act before further rate cuts or shifts in inventory levels alter the landscape. For more detailed insights or personalized advice, feel free to reach out. Let’s keep an eye on the market together and make informed decisions for your real estate needs.