The Fraser Valley real estate market saw an injection of supply in May as new listings surged by more than 40 percent over April.
At 3,533, new listings were just below May 2022 levels (3,631) but slightly higher (2.7 percent) than the ten-year average for the region. A welcome trend towards alleviating housing supply issues.
“Typically we would see an influx of inventory earlier in the spring sales cycle,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “The series of interest rate hikes during the latter half of 2022 had many sellers and buyers in a holding pattern for most of the year. What we’re seeing now is a recovery and adjustment to the new financing landscape.”
Active listings grew to 5,558, a 20 percent increase over April, the highest month-over-month jump in more than a year.
The strong supply trend was met with healthy demand. In May, the Board processed 1,711 sales on its Multiple Listing Service®, a 10.1 percent increase over last month and a 25.8 percent jump over May of last year.
Prices continued to edge upward across all categories as buyer confidence grew, with the composite Benchmark price topping the one-million mark at $1.01 million, a level not seen since September 2022.
“It’s encouraging to see more typically cyclical activity this spring,” said FVREB CEO, Baldev Gill. “Inventory has been trending upwards since December 2022, providing more choice, which in turn will hopefully spur on even more listings. That said, with inflation tracking at elevated levels the potential for further rate hikes is very real. Buyers and sellers would be well-advised to work with real estate professionals to factor this into their decisions.”
Across the Fraser Valley in May, properties continued to move more quickly with each passing month: detached homes took, on average, 23 days to sell and apartments, 23. Townhomes moved more quickly, selling, on average, 18 days after listing.
MLS® HPI Benchmark Price Activity*
•Single Family Detached: At $1,491,700, the Benchmark price for an FVREB single-family detached home increased 2.5 percent compared to April 2023 and decreased 12.7 percent compared to May 2022.
•Townhomes: At $826,200, the Benchmark price for an FVREB townhome increased 1.4 percent compared to April 2023 and decreased 9.8 percent compared to May 2022.
•Apartments: At $542,300, the Benchmark price for an FVREB apartment/condo increased 2 percent compared to April 2023 and decreased 6.3 percent compared to May 2022.
*The MLS® HPI measures the change in home prices in Canada and in May 2023, current and historical data underwent an annual update to ensure a more precise picture of home price trends.