Fraser Valley Real Estate Sales Record Slowest Annual Start in Ten Years; January New Listings Lowest in Over Thirty Years

The real estate market in Fraser Valley, British Columbia, is experiencing a downward trend in sales due to further interest rate hikes keeping buyers sidelined. January saw 626 transactions processed on the MLS®, representing a decrease of 12.6% compared to the previous month and 52.2% compared to the same period last year. This represents the slowest start to the year since 2013, with 617 sales in January of that year.

Sandra Benz, President of the Fraser Valley Real Estate Board, stated that the slow start to the year is due to buyers being understandably cautious. However, pent-up demand from the last quarter of 2022 is expected to result in an increase in sales if interest rates subside, as expected.

Although new listings increased by 128.3% compared to the previous month, with 1,833 listings, this is the lowest level of new supply for January since 1984. Active listings rose slightly, up by 5% to 4,118 over December 2022 and up by 76.6% compared to the same period last year.

Benz added that inventory is expected to start increasing over the coming months as sellers act on decisions that have been on hold, waiting for interest rates to peak. As a result, there should be a greater selection of properties across all categories, leading to increased demand.

The composite benchmark home price in Fraser Valley continued to decline, reaching $942,200, representing a decrease of 1.4% from December and 15.1% compared to January 2022.

FVREB CEO Baldev Gill expects a return to seasonal activity leading into spring after a market slowdown for several months. He recommends buyers and sellers seek the guidance of a professional REALTOR® to determine the best strategy and timing to take advantage of the anticipated market upswing.

In January, the average number of days to sell a single-family detached home was 48, a townhome was 40 days, and apartments took, on average, 41 days to sell.

The MLS® HPI benchmark price activity shows that the benchmark price for a single-family detached home in FVREB decreased by 1.4% to $1,357,800 compared to December 2022 and 17.6% compared to January 2022. The benchmark price for a townhome decreased by 1.8% to $773,100 compared to December 2022 and 8.8% compared to January 2022. The benchmark price for an apartment/condo decreased by 0.2% to $503,700 compared to December 2022 and 5.9% compared to January 2022.

In conclusion, the Fraser Valley real estate market is currently experiencing a slowdown due to further interest rate hikes, causing buyers to be cautious. However, pent-up demand from the last quarter of 2022 is expected to lead to an increase in sales if interest rates subside. As sellers act on decisions that have been on hold, there should be a greater selection of properties across all categories, leading to increased demand. It is recommended that buyers and sellers seek the guidance of a professional REALTOR® to determine the best strategy and timing to take advantage of the anticipated market upswing.

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