Fraser Valley home prices back to pandemic-era levels under weight of economic headwinds and sustained inventory
Home prices in the Fraser Valley fell for the tenth consecutive month in January, pushing the Benchmark price below $900,000 for the first time since spring 2021.
The continued softening of prices wasn’t enough to get buyers off the sidelines, as the Fraser Valley Real Estate Board recorded 619 sales on its Multiple Listing Service® (MLS®) in January, a 33 per cent decrease from December, and 24 per cent below sales from the same month last year. New listings increased 128 per cent in January to 3,078, reflecting the typical seasonal patterns; however, activity remained 10 per cent below last year’s levels.
“January opened the year with negligible momentum,” said Tore Jacobsen, Chair of the Fraser Valley Real Estate Board. “Prices continued to weaken while at the same time selection remains high. Under normal market dynamics, these would be considered highly favourable conditions for buyers, however the uncertainty of the past year or so continues to loom large, subduing buyer confidence and muting overall market activity.”
The Fraser Valley remains firmly in a buyer’s market, with an overall sales-to-active listings ratio of eight per cent in January, down five per cent from December. A balanced market is typically defined by a ratio between 12 and 20 per cent.
“Affordability challenges facing many households today extend well beyond housing costs alone,” said Baldev Gill, CEO of the Fraser Valley Real Estate Board. “Rising day-to-day expenses, combined with wages that have not kept pace, have created significant financial pressure. As a result, potential buyers are choosing to be circumspect with respect to purchasing decisions and are working with REALTORS to develop timing strategies that meet their long-term objectives."
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