The February housing market statistics from Fraser Valley Real Estate Board have been released and we can’t help but wonder, are they foreshadowing a plot twist in the Fraser Valley housing market? Are we approaching the turning point that buyers have been waiting for? Let’s dig a bit deeper.
Following many months of record-breaking sales activity, the market witnessed a curveball in February with a record-breaking number of listings coming to market. Yes, you read that right –this February saw the highest number of listings to ever enter the market for the historically sleepy month. We’ll be keeping our eye on the data to see if this becomes a trend or if this is simply a blip on the radar, but with an increase of 75.3% over the previous month, the new level of listings means sellers have come to play and want to participate in the frenzy.
Looking at the rest of the statistics, days on market fell for condos and detached homes when compared to January (33.3% & 41.7% respectively). Although this drop seems notable, especially considering the influx of new listings, this is a common trend in February as activity starts to pick up pace again in preparation for the spring market. What is shocking, however, is the consistent increase in benchmark prices in the Fraser Valley. Last month, all product types experienced a drastic increase:
- Detached Home: 6.5%
- Townhome: 5.6%
- Condo: 7.1%
Despite the influx of listings, the increase in benchmark pricing indicates that demand is still greatly outweighing supply and, until new homes are added to the mix, there is no sign of this trend slowing down.
What does this mean for the development land market in the Fraser Valley?
The increase in new listings may seem like a positive indicator for the supply issues that have been a constant topic of conversation, however the market is still far from being considered “balanced”; the real factor that impacts the supply issue is the number of new homes being built. Considering that, developers can rest easy knowing that it won’t be a struggle to push through their inventory once their projects are ready to sell.
Further, the conversations around the market froth coming off remain inconsistent depending on who you’re speaking with. Some developers remain fixated on the steadiness of the market trajectory, and others remain cautious with news of interest rate hikes, delayed development timelines (in some areas), and the impending doom of World War III. What we can say for sure is that, regardless of the sentiment, land continues to trade at a record-setting pace for record-setting prices and this will continue for the foreseeable future.
Check out our curated summary of the Fraser Valley Real Estate Board’s February stats in our infographic below.
View the Fraser Valley Real Estate Board’s entire stats package for February 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.