The Anderson Report: Fraser Valley Sale Prices Up $100,000

Average Fraser Valley Sale Prices in 2023 are up $100,000 for all property types!

Housing sale prices increased yet again in the Fraser Valley for the month of April as buyers took advantage of the continued pause in interest rate hikes. Subsequently, we have seen Fraser Valley sale prices growth now since January 2023 in all asset classes across the region. 

If rates hold and prices continue to increase, it will appear that we hit the bottom of the market back in January 2023. Obviously, this will differ based on the asset class and specific area, but that is the case for all assets combined in the Fraser Valley.

What many people are thinking, is how are prices continuing to grow with rates this high? How are Fraser Valley sale prices going back up when incomes have stayed relatively the same? 

Grand Total MLS Summary for the Fraser Valley

Looking at the MLS Summary below we can see that the number of sales are down 5.1% from this same time last year. Be that as it may, this really isn’t too surprising when we consider that April 2022 was the beginning of the cool-off of arguably the hottest market we have ever experienced.

New Listings to market

What is alarming, however, is when we turn our attention to the number of new listings, meaning new homes that come to market in any given month. At this time last year, we had over 1,000 more homes on the market for buyers to choose from. Due to the lack of supply hitting the market, it does make sense that sale prices are increasing. The Bank of Canada has held rates two consecutive times and as a result, buyer confidence is increasing.

I have put together charts for each asset class below so we can analyze how much Fraser Valley sale prices have increased in 2023 so far.

Fraser Valley, All Property Types, 2023 

Fraser Valley Condos, 2023 

Fraser Valley Townhomes, 2023   

Fraser Valley Detached, 2023   

As we can see, average prices have increased in 2023 for all asset classes. Overall, we are seeing buyers come back, the only problem is the sellers are few and far between.

Sales-To-Active Ratio:

This calculation is used to measure the absorption rate of housing. As you can see, the Fraser Valley market is competitive again, sitting at an Active-to-Sales ratio of 38.4% (anything over 20% is a seller’s market).

Active listings: 

In order to create a healthy, balanced market, the Fraser Valley should have around 6,000 active listings on the market at any given time. Presently, we have just under 4,000 active listings on the market. When supply levels are below 6,000, it creates seller market conditions, meaning, the market favours sellers and not buyers. Consequently, it is likely that sale prices will increase.

In the graph below, the higher peaked months are those of spring months such as March-May. As a result, the level we are currently at for the month of April is low.

Personal Experience in the Marketplace

All in all, we are getting multiple offers and seeing sellers holding offer dates again. This means that if you want to submit an offer you have to wait until a certain date and time to do so. 

I have a Walnut Grove townhome for sale in Langley at the moment. It is 4 beds, 3 baths. We priced it fairly out of the gate – even higher than the last sale in the complex for a similar unit. I did not set a direction of offers date because we priced the home well. After only two days on the market, we had 15 showings and I received 3 offers on day two. In summary, we accepted an offer and are currently waiting for subject removal.

Where will Fraser Valley Sale Prices go from Here?

It will certainly be interesting to see where the market goes from here as we head into the summer. Historically, the summer months are slower, however, because the spring has been fairly slow in terms of sales, maybe we will see more this season. At any rate, if we do see an influx of new listings come to the market, I would imagine those who have been searching over the past few months will jump in.

Other Factors to Note

Immigration this year is at a record high. In fact, in the first two months of 2023, Canada has admitted over 100,000 new permanent residents, which is a record by a large shot.

The Canadian job market is strong. Furthermore, people are employed and job growth is ten times larger than expected.

The Bank of Canada has held rates for two consecutive meetings after coming off of eight interest rate increases in 2022. Still, it will be interesting to see what happens at their next meeting as this will have a large impact on market conditions.

For the latest Fraser Valley statistics package, click here.

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