Recent reductions to the Bank of Canada’s overnight policy rate have done little to encourage buyers to step off the sidelines and back into the Fraser Valley market.
Buyers remain cautious, with September sales down eight per cent over August and by more than 10 per cent over last year. September sales stood at 982, 30 per cent below the 10-year average.
However, sellers continue to list their homes for sale with active inventories hitting levels not seen in a decade. This has the Fraser Valley market shifting to favour buyers, something some REALTORS® have experienced in parts of the region over the past few months.
New listings increased by 21 per cent in September to 3,352, an increase of 17 per cent year-over-year.
After declining in August, active listings rose again in September to 9,045, up five per cent over August and up 39 per cent over September 2023.
Sales-to-Active Ratio
The sales-to-active listings ratio shows the Fraser Valley in a buyer’s market, with a ratio of 11 per cent. However, BCREA Chief Economist Brendon Ogmundson cautions against calling it a buyer’s market until a three-month trend has been established.
The market is considered balanced when the ratio is between 12 and 20 per cent.
Detached: 10% (down 2% from August)
Townhouse: 19% (no change from August)
Apartment: 13% (down 2% from August)
“With three rate cuts already and more expected before the end of the year, buyers are watching the market closely to time their purchasing decisions,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “The current conditions should favour buyers, particularly in the detached market, however until we start to see some movement in asking prices, properties will continue to sit on the market for extended periods as both buyers and sellers await the next rate announcement.”
Benchmark Prices
The composite Benchmark price in the Fraser Valley has dipped for the sixth straight month, down 1.4 per cent to $978,800. The composite Benchmark price declined by 4.4 per cent over September 2023.
Change in price: month-to-month
Detached: $1,501,100 -1.5%
Townhouse: $834,400 -1.4%
Apartment: $545,000 -0.2%
To learn more about HPI Benchmark prices by sub-area, click here.
Days on Market
The average number of days to sell a single-family detached home in September was 35 (up from 33 in August), while a townhouse was 30 (up from 28 in August). On average, condos sold in 37 days (up from 32 in August).
For a more detailed look at the Fraser Valley market, watch Eye on the Market with Board Chair, Jeff Chadha or click here to view the Monthly Statistics Package.