In a press release on January 12, 2022, the BC Real Estate Association reports that 2022 is starting off with record low inventory levels. In other words, there are a record low number of homes currently listed for sale, to start the year off.
The chief economist was reported as saying, "Last year was a record year for BC homes sales with seven market areas setting new highs," said BCREA Chief Economist Brendon Ogmundson. "Listings activity could not keep up with demand throughout the year. As a result, we start 2022 with the lowest level of active listings on record."
BCREA notes that "Total active residential listings were down 41.2 per cent to a record low of 12,179 units. The supply situation is particularly concerning in the Fraser Valley, Chilliwack and Vancouver Island where there is one month or less of supply at the current pace of sales."
The lack of homes for sale is posing a serious challenge for buyers and firmly keeps the market into one that heavily favours sellers. The Fraser Valley homes that are being listed are generally selling FAST. Until we see more homes come up for sale, the pressure on prices to move up may continue for a while yet.
It may be that we need to see the pandemic subside before more prospective sellers are willing to list their home for sale. Just a theory. Also, will the pendulum eventually swing to where there are an abudance of homes for sale, and we see people begin to relocate and really move on en mass? Only time will tell.
With mortgage rates set to rise in 2022, this may trigger a shift in the market dynamics of Fraser Valley real estate markets. Keep the faith, Fraser Valley homebuyers.
The full press relase can be found here: