Fraser Valley market balanced, as demand softens and prices edge lower

In the evolving landscape of the Fraser Valley housing market, the month of September witnessed a notable shift towards equilibrium, with a convergence of slowing demand and a substantial uptick in new listings. This follows a three-month trend of declining sales, resulting in a second consecutive month of Benchmark price decreases.

Key Highlights:

• Sales Overview:
  • In September 2023, the Fraser Valley Real Estate Board reported 1,100 sales on its Multiple Listing Service® (MLS®), reflecting a 13.6% decrease compared to August.
  • Despite the monthly dip, there was a substantial year-over-year increase, with sales up by 22.6% compared to September 2022.
• New Listings and Inventory:
  • New listings experienced a commendable surge, rising by 9.1% to reach 2,860 in September.
  • Active listings, on a consistent upward trajectory since December, grew by 3.8% to 6,532 in September, positioning them 3.5% below the ten-year average.
• Market Dynamics:
  • Narinder Bains, Chair of the Fraser Valley Real Estate Board, remarked on the emergence of a more balanced market, attributed to the steady rise in inventory and a concurrent slowdown in sales.
  • The sales-to-active listings ratio for detached homes softened, dropping to 14% in September from 16% in August. Conversely, demand for townhomes and apartments remained robust at 31% and 25%, respectively.
  • The overall sales-to-active listing ratio reached 17%, indicative of a balanced market, aligning with the 12% to 20% range considered optimal.
• Price Stability:
  • Benchmark prices in the Fraser Valley exhibited marginal decreases of less than one percent across all property types compared to the previous month.
• Outlook and Recommendations:
  • Baldev Gill, CEO of the Fraser Valley Real Estate Board, noted the impact of lingering interest rate uncertainty, resulting in slower September sales compared to typical seasonal trends.
  • Recognizing the localized nature of market conditions, Gill advised buyers and sellers to consult with their REALTOR® for tailored guidance and expertise.
• MLS® HPI Benchmark Price Activity (September 2023):
  • Single Family Detached: The Benchmark price for an FVREB single-family detached home stood at $1,526,000, reflecting a 0.6% decrease from August 2023 and a 4.6% increase from September 2022.
  • Townhomes: With a Benchmark price of $848,600, townhomes experienced a 0.3% increase compared to August 2023 and a 3.5% increase from September 2022.
  • Apartments: The Benchmark price for apartments/condos settled at $545,900, indicating a 1.4% decrease from August 2023 and a notable 3.4% increase from September 2022.

As the Fraser Valley housing market attains equilibrium, stakeholders are advised to stay attuned to the nuanced dynamics within their specific locales. For comprehensive insights and strategic guidance, engaging with a professional REALTOR® remains pivotal in navigating the intricacies of the evolving market.

Find the Fraser Valley Real Estate Board Statistics Package here. 

Thanks, 
Sunny Kaler – PREC
REMAX Blueprint Realty