The Snapshot
Fresh from coming off the busiest year in history for Fraser Valley real estate, January activity saw the beginnings of a market rebalancing. Overall property sales were still the third highest ever for January however, the volume of new listings improved significantly. The number of new listings we saw hit the market in the Valley inJanuary increased 67.1% compared to December, 2021.
I know that December is not the most popular month for a seller to list their home. However, to see a 67% increase in just one month is an indication that the intense sellers market we have been in for just under 2 years might be starting to shift into a more balanced market.
For reference, a balanced market is one where there is more of an equal number of buyers for homes on the market. A balanced market sees between4-6 months of inventory on at any given time. Currently, we are sitting at 1.7 months of inventory for all levels of homes across the Fraser Valley.
It is still very early into the year, and we do have a long way to go to replenish our housing stock. That said, seeing the high volume of new listings hit is a step in the right direction and if it continues into the Spring, I am hopeful we will see a much needed market shift.
Interest Rates
The Bank of Canada met on January 26th and announced that they were not going to raise the overnight rate. This came as a surprise too many. This was not what the majority was expecting to hear and brings anticipation that the rates may increase at their next meeting which will be held on March 2.
The potential rate and supply increases may ease price growth moving into 2022.
The Inside Scoop
I have been out in the trenches, working with those brave buyers! I am showing condos, townhomes and detached homes in a variety of different neighbourhoods at the moment and I personally have not felt things slow down, even with the surge of new inventory we saw over the last month.
What I have seen recently is that the condo market is seeing more offers per home than we did last year. This brings me back to the affordability gap seen between condos and townhomes. The gap is quite large and as a result, buyers are being lead to condos simply due to affordability.
I was able to secure an off market townhome sale this past week with my buyers. I got a tip from a fellow Realtor colleague of mine of an upcoming listing, got my buyers in to see it that evening and had a non-conditional offer firmed up by the next morning. The market moves fast, but there are still deals to be had!
Full stats package here.
Crunchin’ The Numbers
Fraser Valley Benchmark Pricing January 2021 – January 2022
Fraser Valley Snapshot by Type of Home:
Langley Snapshot by Type of Home:
