The Fraser Valley residential real estate market took another step towards stability in March 2023. Sales for the month were 73% higher than the month prior (February 2023). This sales volume represented a decline compared to the same month in 2022 of 40%. As well, sales for March 2023 were about 25% below the 10 year average for the month.
Like other areas of B.C., low supply of active listings is a major problem for prospective homebuyers and a big reason for a resumption in some price growth. The low levels of homes for sale is not a sign of a healthy market for homebuyers, with such little choice on market.
New listings were up 32% compared to Feb. 2023 but still 44% below March 2023. Active listings are down 3.5% compared to March 2023 as well. Both new listings and active listings in March 2023 were well below the 10 year average for the month.
The overall sales-to-active listings ratio rose to 34%. This means the market shifted into the favour of a sellers market again. Townhomes in particular were in high demand with a sales-to-active listing ratio of 62%.
The direction in mortgage rates will play an important role moving forward. Currently, the Bank of Canada is on pause with respect to any possible interest rate hikes. That offers some predictability to buyers, in the near term. However, again, the lack of active listings for buyers to choose from is problematic and putting some upward pressure on prices again.