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In an environment of rising interest rates and record inflation, the Fraser Valley housing market is beginning to show signs of correction.
In May, sales activity across all property types was down 16.9% compared to April, with single-family homes seeing the most drastic decline at 21% from the previous month.
As sales have plummeted, active listings in the region have more than tripled since December 2021. As of the end of May, there were 6,183 active listings in the Fraser Valley, a 14.8% increase from to the previous month.
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But is this market slowdown a cause for concern? According to Jamie Squires, real estate expert and president of Fifth Avenue Real Estate Marketing, homeowners needn’t worry.
Squires has been monitoring and working in the Fraser Valley market for over 19 years. Based on what she’s observed, Squires thinks these recent declines appear to be market normalization rather than a total meltdown.
Indeed, prior to this recent decline, selling activity and prices in the Fraser Valley were abnormally high.
“What we saw last year and in the first two months of 2022 was unprecedented,” says Squires. “So if you weren’t comparing the numbers to a record year, the pace of sales last month would seem normal.”
As for average prices, Squires thinks they’re likely to stabilize soon rather than fall further, especially for new builds, as there isn’t much room for construction costs to come down given of the inflation rate.
Business activity can remain slow for a few months, especially throughout the summer, as people are increasingly busy (and often on vacation).
But it’s important to remember that real estate is generally a long-term investment that will experience occasional downturns and downturns.
In the midst of a down market, homeowners haven’t actually lost money unless they actively sell their property.
“Market trends have shown us that as long as you don’t move within the next six months, you’ll likely be back where you were,” Squires says. “If you’re moving in five years, you’ll probably be ready by the time you go to sell.”
This article was produced in partnership with STOREYS Custom Studio.
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