Prospective homebuyers in Fraser Valley markets like Surrey, Langley, North Delta and Abbotsford are having a challenging time right now. Near historical levels of active listings simply aren't satisfying the buyer demand in the marketplace. To put it bluntly, there isn't a lot of choice for buyers and sellers have the upper hand right now.
Unfortunately, it looks like this trend will probably continue at least into the first quarter of 2022, if listings remain scarce. Combine low active listings, with still low mortgage rates and high demand and you have a strong sellers market. Complicating things further, it is expected that mortgage rates will be ticking higher through 2022. This means that potential buyers with rate holds in place, might be extra motivated to buy in Q1.
Geographical flexibility (i.e. work from home) still has many buyers enticed by Fraser Valley housing options that offer a bigger footprint and more living space. Low inventory may be creating a sense of fear of missing out (FOMO) on the part of buyers competing with each other. On the other hand, sellers themselves may be hesitant to list their homes for sale due to FOMO as well; fear of missing out on runaway price gains that they've been seeing each month. Some sellers may just be sitting back and watching their equity rise rapidly which may be a disincentive to part with their homes.
In my opinion, this is not a healthy market for buyers. It may be prudent to take a deep breathe, pause and engage in the market when there is more balance by way of more active listings.
Like all things in life, there is an equilibrium in markets. Fraser Valley real estate is seeing the pendulum far on one side favouring sellers at the moment. But you can be sure that the pendlum will eventually (maybe sooner than you think) swing back towards the middle. And who knows, maybe the pendulum will swing back to the favour of buyers, if rising mortgage rates cause a shift in the market. Markets go in cycles. So do Fraser Valley houses, townhomes and apartments.
Keep the faith buyers.