The housing market statistics are out from the Fraser Valley Real Estate Board for the month of April and the data indicates that the deceleration we saw last month has continued. While the frenzy has calmed compared to earlier this year, the general sentiment has not changed; the market is still favorable for sellers as we continue to face serious inventory concerns, however, the hike in interest rates has already shown signs of rebalancing the market.
This past April was the first time in almost two years that the monthly sales average dropped below the 10 year average; the last time we experienced this was back in June 2020, when sales were being impacted by the early days of the pandemic. We would expect the spring market to bring a flood of activity, however, that hasn’t been the case so far, so with the slowing of sales combined with an increase in active listings there is an illusion of market balance, but it is fleeting.
Looking at the rest of the statistics, days on market increased for detached homes and condos when compared to March (41.7% & 18.2% respectively), whereas townhomes decreased by 7.1%. The increase in days on market is notable and, to be honest, expected considering the recent hike in interest rates. The increase means homebuyers are likely being more cautious on pulling the trigger. Further, coming off several months with significant month-over-month increases in benchmark pricing, April witnessed only very moderate increases:
- Detached Home: 0.2%
- Townhome: 1.8%
- Condo: 1.0%
With the resale market in the Fraser Valley being as busy as it’s been the past few months the perceived ‘balance’ in the market may only be a result of sales easing off pressure on the throttle; it’s still moving forward, just not as fast as before. Particularly with townhomes and single family homes (which reached new pricing records earlier this year) as prices have since softened moderately, while condos have remained relatively stable.
WHAT DOES THIS MEAN FOR THE DEVELOPMENT LAND MARKET IN THE FRASER VALLEY?
The development land market in the Fraser Valley remains steady, but it’s not as feverish as it was in the first quarter of the year. Increasing interest rates have remained a topic of conversation and it’s caused buyers, who would otherwise be incredibly optimistic on a site, to take a step to the side to play a ‘wait and see’ game, especially on larger sites. This sentiment hasn’t caused a trend of moderations in pricing, but it’s something to keep an eye out for as we head into a potentially more cautious market.
Check out our curated summary of the Fraser Valley Real Estate Board’s April stats in our infographic below.
View the Fraser Valley Real Estate Board’s entire stats package for April 2022 here.
This representation is based in whole or in part on data generated by the Fraser Valley Real Estate Board which assumes no responsibility for its accuracy.