Signs of stability in Fraser Valley housing market
January showed signs that things may be turning for the Fraser Valley Real Estate market. Sales were up for the first time in six months and we also saw the largest month-over-month increase in inventory in five years. Despite this increase, inventory still poses a problem, as even this slight surge in demand is seemingly outpacing inventory, creating sellers markets for all product types in many neighbourhoods. In early January this resulted in multiple offers starting to become more common again. Initially, even with multiples, most offers would have conditions and seldom went over the asking price. As we progressed through the month though, especially over the last two weeks, we started to see more subject free offers and people going over the asking price. As we enter the spring market, we expect to see increased consumer confidence as there is more stability with interest rates. Hopefully, we also see a large number of sellers get off the fence, so that inventory can keep pace with this rebounding demand. With shifts like this in the market comes great opportunity; if you have a well thought out strategy and the right team working for you. Give us a call to see what that looks like for you.
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What Does The Fraser Valley Real Estate Board Have To Say?
SURREY, BC – The Fraser Valley real estate market showed signs of recovery in January as home sales rose after six consecutive months of decline, and new listings more than doubled.
The Fraser Valley Real Estate Board recorded 938 transactions on its Multiple Listing Service® (MLS®) in January, a 12 per cent increase over December and below the 10-year average for sales in the region.
At 2,368, new listings increased 151 per cent in January, rebounding strongly from the seasonal lull seen in December. This is the largest month-over-month percentage increase in new listings in five years.
“With January sales on the rise, we are seeing hopeful signs that optimism is returning to the market,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “Anticipating that we may be at the end of the Bank of Canada rate hike cycle, it appears that more buyers are considering re-entering the market as we are starting to see more traffic at open houses.”
Active listings in January were 4,877, up by 4 per cent over last month and up by 18 per cent over January 2023. The sales-to-active listings ratio was 19 per cent, representing balanced conditions in the overall market. Detached houses are in balanced market territory at 19 per cent, while both townhomes and apartments remain in seller’s market territory at 34 and 27 per cent respectively. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.
“Current balanced market conditions present opportunities for both buyers and sellers,” said FVREB CEO, Baldev Gill. “In today’s market, buyers and sellers have time to get preapprovals, put together offers and take the time needed to work through the purchase or sale of a home with the help of a knowledgeable and professional REALTOR®.”
The average number of days homes are spending on the market has been increasing since October, with single family detached homes spending 44 days on the market, apartments spending 41 days on the market and townhomes moving more quickly at 33 days.
Overall Benchmark prices continued to edge downward for the sixth month in a row, losing less than half a per cent from December, and down six per cent from the 12-month peak in July.
MLS® HPI Benchmark Price Activity
• Single Family Detached: At $1,466,100, the Benchmark price for an FVREB single-family detached home decreased 0.4 per cent compared to December 2023 and increased 8.6 per cent compared to January 2023.
• Townhomes: At $825,600, the Benchmark price for an FVREB townhome decreased 0.1 per cent compared to December 2023 and increased 6.9 per cent compared to January 2023.
• Apartments: At $539,700, the Benchmark price for an FVREB apartment/condo increased 0.4 per cent compared to December 2023 and increased 6.5 per cent compared to January 2023.
Find the January 2024 Statistics Package HERE.
