As we delve into the holiday season, the Fraser Valley real estate market is showing signs of a seasonal cool-down, with both buyers and sellers maintaining a holding pattern that has characterized the latter half of this year. The Fraser Valley Real Estate Board's latest report reveals key insights into the market dynamics for November.
Transaction Trends:
In November, the Fraser Valley Real Estate Board recorded 891 transactions on its Multiple Listing Service® (MLS®), marking an 8% decline from the previous month. This places November as the 9th slowest in a decade. Simultaneously, new listings saw a notable decrease of 20%, with 2,030 new properties added to the market—43% less than the peak in May at 3,533.
Fraser Valley Real Estate Board Chair, Narinder Bains, 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. We anticipate this holding pattern, defined by slow sales and declining new listings, will continue through the winter months until we see some downward movement in interest rates."
Market Dynamics:
Active listings in November totalled 6,254, reflecting a 5% decrease from the previous month but a 17% increase over November 2022. The sales-to-active listings ratio stood at 14%, creating balanced conditions in the overall market. Detached houses showed balance at 12%, while both townhomes and apartments remained in seller’s market territory. The market is considered balanced when the ratio falls between 12% and 20%.
FVREB CEO Baldev Gill weighs in, stating, "With seasonality and high interest rates continuing to dampen sales activity, we expect to see sales slow further into early 2024. However, even a slow market can present opportunities, and buyers would be well-advised to work with a knowledgeable, professional REALTOR® who can provide expert advice and guidance."
Property Performance:
On average, properties spent approximately one month on the market, with single-family detached homes taking 36 days and townhomes and apartments moving more quickly at 29 days. Overall benchmark prices continued their decline for the fourth consecutive month, losing 1.1% compared to October.
Benchmark Price Breakdown:
Single Family Detached: The benchmark price decreased to $1,489,100, a 0.94% drop from October 2023, but a 6.22% increase compared to November 2022.
Townhomes: The benchmark price reached $837,200, showing a 0.95% decrease from October 2023 and a 5.08% increase compared to November 2022.
Apartments: The benchmark price for apartments/condos is $545,300, with a minimal 0.02% decrease from October 2023 and a notable 5.60% increase compared to November 2022.
In conclusion, navigating the Fraser Valley real estate market requires a keen understanding of these evolving trends. As the market takes a breather heading into the winter months, potential opportunities arise for buyers, and collaboration with a professional REALTOR® becomes pivotal for making informed decisions in this dynamic landscape. Stay tuned for further updates as we navigate the ever-changing real estate terrain.
