🔥 Is the Langley Real Estate Market Going Back to 2021 Conditions? 🔥
The number of sales rose for the first time in over 6 months in the Fraser Valley and Langley real estate market from the height of sales in 2023 which took place in June. We are off to a strong start to 2024!
Sales rose 12% over the last month, which is typical when comparing December to January, since December usually sees less sales. When comparing January 2024 to January 2023, sales are up 49.8%.
New Langley Real Estate Listings
What was shocking was seeing that the number of NEW listings doubled in just one month! In December 2023 there were only 942 listings, however, in January 2024, we saw 2,368 new listings which is 29.2% more compared to the previous January.
Interest Rates & The Bank of Canada
The BOC met on January 24, 2023, where they announced that they would maintain interest rates, keeping the overnight lending rate at 5%. This announcement sparked interest among buyers who have been closely monitoring the steady rise in rates since March 2022.
I have observed an early surge in the Valley. Usually, January and February are not very busy, however, that has not been the case this year. I think a lot of that can be attributed to the belief that interest rate decreases are on the horizon, and buyers are already trying to get ahead of it.
The next time the Bank of Canada meets to discuss rates will be in March. I expect rates will hold again until later in the year. This is based on inflation coming down this past month and the fact that the market is already heating up early and decreasing them too early might act as too much of a catalyst for the spring market.
Benchmark Sale prices
Benchmark sale prices have declined for the 6th consecutive month since reaching their peak in July 2023. We are down 6% from July’s peak in 2023.
Variable and Fixed Rates
Fixed rates have finally dipped below the 5% mark! Variable rates remain high. My current variable rate is 7.35%. I have chosen not to lock into a fixed at this time, as I feel fixed rates will continue to decrease over the foreseeable future…hopefully, I am correct.
Interest Rate Projections
Markets are now pricing in 3 rate cuts, with the first in June…a significant change from December projection.
Sales-to-Active Ratio
This ratio measures absorption rates, and, ultimately what type of real estate market we are in – buyers, sellers or balanced. When looking at all property types in the Fraser Valley and Langley real estate markets, the sales-to-active ratio has been climbing since November.Â
Townhomes are the most in-demand and in a seller’s market at 31.6%. Apartments are coming in second for most demand at 25.5%. Lastly detached are sitting at a sales-t-active of 16.1% which is a balanced market. I expect the detached market to increase and fall into a seller’s market this year.
My Recent Experience with Clients
In the past two weeks, I have been in multiple offers with two separate buyers. One of which was a multiple offer for a backup position, a first for me!
In the current Fraser Valley and Langley real estate market – especially for townhomes and condos- is competitive, once again for buyers. With projected rate decreases on the horizon from the BOC, I believe, will continue to shift us into a seller’s market, yet again.
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