Following April, the amount of active listings in the Fraser Valley hit levels that have not been seen since September 2020. Now, according to May statistics published by the Fraser Valley Real Estate Board (FVREB) on Tuesday, listings have hit levels not seen since September 2019.
There were 7,904 active listings across the Fraser Valley as of May, representing an 8% increase over April 2024, a 42% increase over May 2023, and a 19% increase over the 10-year May average.
This was the result of 3,760 new listings coming online in May, while home sales totalled just 1,517. The latter is 3% higher than April 2024, but 11% lower than May 2023 and 21% lower than the 10-year May average.
"We are seeing an influx of inventory this spring, primarily due to slower than usual spring sales," said FVREB Chair Jeff Chadha. "Growing inventory levels are helping to create a healthy balance in the market, giving buyers more options, especially as prices continue to flatten."
Buyers or Sellers
FVREB's May numbers indeed reflect that there's currently a healthy balance in the market.
The aforementioned statistics allow us to identify the sales-to-new-listing ratio, as well as the sales-to-active-listings ratio, which are two quantitative indicators that can give us a sense of whether the market is currently leaning towards buyers or sellers.
For the sales-to-new-listings ratio, a ratio of 40% or lower is considered a buyers' market, a ratio of 55% or higher is considered a sellers' market, and anything in between is considered a sign of market balance.
With 1,517 home sales and 3,760 new listings in May, the sales-to-new-listings ratio is now at 40.3% after being at 36.9% after April, bringing the market to a balance.
For the sales-to-active-listings ratio, 12% or lower is viewed as a buyers' market, 20% or over is viewed as a sellers' market, and anything in between is viewed as a balanced market.
With 1,517 home sales and 7,904 total active listings after May, the sales-to-active-listings ratio is now at 19.2% after being at 20.1% following April, again indicating balance in the market.
Analysis and Outlook
Following May, the benchmark price is now $1,530,200 for single-detached homes, $853,800 for semi-attached homes, and $555,100 for condominiums.
All three represent increases of between 2.9% and 3.4% when compared to this time last year, but decreases of between 0.03% and 0.1% when compared to April 2024 — although the benchmark price increased by 0.2% for single-detached homes specifically.
"The increase in supply over the past several months has further contributed to a softening of price growth, which is good news for buyers," said the FVREB.
Those in the market can expect single-detached homes to stay on the market for an average of 25 days, semi-attached homes for an average of 20 days, and condominiums for an average of 23 days.
All eyes are now on the Bank of Canada and what it will do with interest rates, which could dictate the trajectory of real estate markets. The next policy interest rate announcement will be on Wednesday, June 5.
"While the consensus seems to indicate rate cuts in the latter half of the year, there is considerably less agreement about either magnitude or timing," said FVREB CEO Baldev Gill. "We strongly encourage buyers to have comprehensive discussions with their realtors about market conditions and how they will impact mortgage rates in the coming year."
