Residential real estate sales in the Fraser Valley continued to trend down in January 2023. Sales were down 13% compared to the previous month of December 2022. Compared to a year prior (January 2022) sales were down 52%. This was the lowest volume of sales for the month of January since 2013.
We need inventory of new listings to pick up in the coming months to achieve a more normally functioning market; one where pent-up demand can be satisfied with more choice of homes available for sale. Relatively low inventory seems to be keeping prices somewhat stable, at least at the moment.
Below is a snapshot of Fraser Valley wide pricing benchmarks for Detached houses, Townhouses and Apartments.
Based on the sales-to-active listings ratio, we seem to be in a balanced market for both detached houses and apartments or condos. There still seems to be good demand for townhouses right now.
Looking ahead to the spring 2023 market, the supposed pause of interest rate increases will be key to the market finding a new equilibrium. The Bank of Canada has signalled it will now be taking a wait and see approach to how the economy adjusts to the interest rate hiking campaign it's been on over the past year. This adjustment period will help bring clarity to the state of the housing market in the Fraser Valley.