Signs of stability in Fraser Valley housing market

by Vishav Brar

SURREY, BC — January witnessed a resurgence in the Fraser Valley real estate market, with home sales rebounding after a six-month decline streak, accompanied by a more than twofold increase in new listings.

The Fraser Valley Real Estate Board reported 938 transactions on its Multiple Listing Service® (MLS®) in January, marking a 12 percent uptick from December but falling below the region's 10-year sales average.

New listings surged to 2,368, representing a remarkable 151 percent rise from December figures and marking the most substantial month-over-month percentage increase in new listings in the past 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.”

In January, active listings totaled 4,877, marking a 4 percent increase from the previous month and an 18 percent rise from January 2023. The sales-to-active listings ratio stood at 19 percent, indicating balanced conditions across the overall market. Specifically, detached houses reached a balanced market territory at 19 percent, while townhomes and apartments maintained seller's market territory at 34 and 27 percent, respectively. A market is deemed balanced when the ratio falls between 12 percent and 20 percent.

“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®.

Since October, the average number of days homes spend on the market has been on the rise. Single-family detached homes typically spend 44 days on the market, apartments linger for about 41 days, while townhomes tend to move more swiftly, averaging 33 days on the market.

Benchmark prices continued their downward trend for the sixth consecutive month, experiencing a decrease of less than half a percent from December. Compared to the 12-month peak in July, prices have dropped by six percent.