FRASER VALLEY REAL ESTATE REPORT: FEBRUARY 2024
Observations, Opinions, Trends and Analysis of Suburban Vancouver BC Housing Markets
2024 continues to be a fairly strong start in the Metro Vancouver and Fraser Valley real estate markets. Compared to a month earlier and a year prior, the month of February 2024 was an overall positive one. Below are my key takeaways from residential real estate activity in the Fraser Valley, for February 2024.
The Market Backdrop
The Bank of Canada once again left it’s key benchmark interest rate unchanged in March 2024. That is both the January and March interest rate setting meetings that the Bank did not change it’s key interest rate. The BOC looks to be clearly done with it’s interest rate hiking campaign and remains in a wait and see mode.
For now, mortgage rates seem to still be holding mostly steady at their current levels.
Fraser Valley benchmark home prices rose for the first time in six months in February.
What Stood Out to Me in February 2024
Sales numbers were up from January 2024 by 32% and up 38% from February 2023 but still 21% below the 10-year average for sales in the region.
The average days on market to sell a home was still quite low: 35 days for detached houses, 28 days for townhomes and 29 days for apartments. This means there is still steady demand for homes.
The sales-to-active listings ratio overall was 22% indicating a seller’s market for the housing market as a whole. For the three main property types, the ratio was 22% for detached houses, 35% for townhomes and 33% for condo apartments.
Fraser Valley townhomes clearly continue to be in high demand and it’s a strong seller’s market in this segment. Apartments are also in a clear seller’s market.
Active listings in January were 5,561, up by 14% versus January and up by 26% compared to February 2023.
My Take on the Current Housing Market
There was a continued surge in new listings in February of 2,797 listings coming to market. This was up 14% compared to the month prior and up 26% from a year earlier.
It is worth watching closely to see if we continue to see more and more new listings coming to market and if they begin to pile up to the point that demand does not meet the new inventory coming online.
It is positive to see active listings climbing. More selection of homes for sale helps ensure enough competition among sellers to keep the market in balance. We need a buildup in active listings this spring to keep things in balanced market conditions. Otherwise, the pent-up demand of sidelined buyers could put upward pressure on prices yet again.
What I’m Watching in the Months Ahead
Will the Bank of Canada proceed with rate cuts in the middle to second half of 2024? This could have a big impact on market psychology. If they do cut, how much and how often will strongly shape the real estate market for the second half of the year. It could reignite buyer motivation to purchase if affordability can be improved for shut-out buyers.
Inventory levels of active listings is currently better than the record lows seen in recent years. If the level of distressed sellers putting their homes up for sale remains relatively low, then prices may hold up better than a lot of people expect. However, there has been recent news of rising missed mortgage and credit card payments in BC.
The unemployment rate remains very low and the labour market still seems good. The job market will greatly influence consumer confidence and peoples’ willingness to jump into homeownership.
Home Prices Across the Fraser Valley
Housing Market Update by City (stats)
North Delta & Surrey Central Housing Activity
North Surrey & Cloverdale Housing Activity
South Surrey, White Rock & Langley Housing
Abbotsford & Mission Housing Market Activity
Disclaimer:
This publication is not intended to cause or induce breach of existing agency agreements.
The views contained within are my own and not those of any organizations I may be affiliated with.
Statistical data is deemed accurate as of the date of publication and based on available board information at that time. Please verify accuracy of stats independently, if deemed important.
This newsletter is not for investment advice and only reflects my observations. Please seek qualified professional advice, before making any disposition or acquisition decisions.