According to the latest data published today by the Fraser Valley Real Estate Board (FVREB), October saw a total of 901 residential property sales, down 53.5% from this time last year, with 1,938 transactions.
The FVREB -- which includes Surrey, Langley, White Rock, North Delta, Mission, and Abbotsford -- says it also saw 2,186 new listings in October, which is on par with October 2021, and bringing the total number of active listings in the region to 5,642, an increase of 63.7% compared to this time last year. Properties listed stayed on the market for an average of about 27 to 34 days.
Using those numbers allow us to identify the sales-to-listings ratios, which can serve as a bellwether for whether the real estate market is leaning towards buyers or sellers.
For sales-to-active-listings, 20% or higher is generally considered a sellers' market, while a ratio 12% or lower indicates a buyers' market. Following October, the ratio is 15.9%, a number that signals balance in the market.
Another ratio to look at is sales-to-new-listings, where 55% or higher is typically considered a sellers' market and 40% or lower a buyers' market. Using that metric, the ratio is 41.2%, a confirmation that the market is indeed in balance.
"These trends suggest that the market is looking to re-establish equilibrium in the wake of last year’s intense activity and in the face of continued interest rate pressures," said Sandra Benz, President of the FVREB. "With sales continuing to lag and new inventory slow to come onstream, we’re seeing a holding pattern regarding whether to buy or list a property and expect this to continue through to year-end."
READ: Metro Vancouver Home Sales Down 45.5% in October as Rate Hikes Bite
From the perspective of prices, the FVREB says that prices in the Fraser Valley have declined slightly across all real estate property types. The benchmark price for single-detached homes -- $1,436,400 -- is "on par" with October 2021 levels, while the benchmark price is up 7.7% for townhouses ($809,800) and 11.5% for apartments ($527,900), year-over-year.
"With interest rates at their highest levels since 2006, it’s understandable that buyers and sellers are hesitant," said FVREB CEO Baldev Gill. Interest rates are expected to go up again next month, so this may very well be the status quo for a while until mid-to-late 2023, when interest rates have been predicted to stabilize a bit.
