The residential real estate market in the Fraser Valley is heading into the key spring selling season. The market dynamics will determine price direction for 2023, I believe. What will be the primary determining factor, in my view, will be new and active listings.
Historically low levels of active listings have perhaps kept prices from falling further than they have. With limited homes for sale, lower demand due to higher mortgage rates, is keeping things in balance mostly. The sales to active listings ratios seem to indicate a balanced market.
What needs to be monitored will be how many potential sellers actually move ahead with listing their homes for sale. It doesn't necessarily have to be distressed sellers. It could be sellers who held off on listing their homes during or due to the COVID 19 pandemic.
I will update regular readers here as updated statistics come available. But if interest rates stabilize and listings remain limited, then maybe the downside in prices will be too. To be determined...