The rapid run-up in Fraser Valley house prices has been well documented over the past couple of years.  North Delta, Surrey, Langley, Mission and especially Abbotsford have seen huge price increases in all categories of homes: detached, townhouses and condos.  

Seller greed may be a factor in the scarcity of active listings.  When otherwise would-be or potential sellers see big monthly price jumps, month after month, they may have a fear of missing out (FOMO) of their own.  That is to say they don't want to miss out on seemingly easy equity gains.  And so, some may be postponing their decision to sell until price increases flatten out.  After all, who doesn't want to cash out at the top if they can afford to wait.  At that point, buyer fatigue will be setting in.

Buyer fatigue is when buyers in the marketplace are simply exhausted from the multiple-offer bidding situations and/or when their affordabililty is simply maxed out and they cannot compete in the market.  We might not be that far off from this situation. 

Mortgage rates are up meaningfully from the lows of the pandemic.  About half of home buyers in the past year have taken variable rate mortgages because of their rock bottom low rates.  However, that too may be about to change as the Canadian central bank looks set to begin an interest rate tightening cycle, that will likely see several increases.  In turn, this would increase the cost of variable rate mortgages.  Fixed mortgage rates have already been on the rise.

Only time will tell, but we may be closer to peak hysteria than many now recognize or foresee.  Buyer fatigue has to inevitably set in at some point.