Introduction
As the holiday season approaches, the Fraser Valley real estate market is experiencing a prolonged cooling trend, with home sales falling for the fifth consecutive month. The Fraser Valley Real Estate Board reports a decline in both transactions and new listings, marking November as the 9th slowest in a decade. Let’s delve into the details of the current market conditions and explore what this means for both buyers and sellers.
Vancouver British Columbia Canada City Lights and Skyline from Stanley Park at Dawn Blue Hour Panorama.
A Downturn in Transactions and Listings
In November, the Fraser Valley Real Estate Board recorded 891 transactions on its Multiple Listing Service® (MLS®), indicating an 8% drop from the previous month. This decline in transactions contributes to a holding pattern that has persisted over the latter half of the year. New listings also experienced a significant decrease, falling by 20% from October and 43% since reaching a peak in May at 3,533.
Narinder Bains, Chair of the Fraser Valley Real Estate Board, notes, “As we head into the holiday season, buyers and sellers are busy with other priorities and will most likely continue to wait on the sidelines.”
Active Listings and Market Conditions
Active listings in November were 6,254, down by 5% from the previous month but up by 17% compared to November 2022. The sales-to-active listings ratio stood at 14%, creating balanced conditions in the overall market. Detached houses reached a balanced market territory at 12%, while townhomes and apartments remained in a seller’s market.
FVREB CEO Baldev Gill anticipates further sales slowdown into early 2024 due to seasonality and high interest rates. However, he emphasizes that even in a slow market, opportunities exist, advising buyers to collaborate with knowledgeable and professional REALTORS® for expert advice.
Benchmark Prices and Market Trends
Benchmark prices continued their downward slide for the fourth consecutive month, losing 1.1% compared to October. The Benchmark price for single-family detached homes was $1,489,100, decreasing by 0.94% compared to October 2023 and increasing by 6.22% compared to November 2022. Townhomes and apartments followed suit, with Benchmark prices at $837,200 (down 0.95% from October 2023) and $545,300 (down 0.02% from October 2023), respectively.
Time on Market
Properties, on average, spent about one month on the market. Single-family detached homes took 36 days, while townhomes and apartments moved more swiftly at 29 days.
Conclusion
As the Fraser Valley real estate market faces a decline in sales and listings, the holiday season and high interest rates continue to contribute to the holding pattern. Despite the challenging market conditions, opportunities may arise for savvy buyers with the guidance of knowledgeable REALTORS®. The Fraser Valley Real Estate Board anticipates a further slowdown into early 2024, emphasizing the importance of strategic decision-making in navigating the current market landscape.
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Please contact Jared Gibbons, your local realtor, should you have any questions!