The Fraser Valley Real Estate Board has released the housing market stats for the month of May and they have caused a lot of speculation about where the market is headed, but if anything is true, it’s that the trends we’re seeing are indicative of balance being restored.
Before we dive into the numbers, it’s important to note that the national MLS Home Price Index methodology was updated during an annual review in May. Beginning in June 2022 for the May statistics, the HPI will reflect data collected from the previous 5 years, to keep in line with modern housing trends and reflect the pricing of homes with attributes that are standard in today’s market.
On to the fun stuff – the numbers. The key points are as follows: Sales are down, the number of available listings and days on market have increased rather significantly over a short period of time (between 5.9% – 15.9%),and sale price as a percent of sale price is down relatively consistently across all product types (between 2.9% – 3.5%). In essence, the frenetic activity in the market has eased. Further, HPI is down across all product types in the Fraser Valley:
- Detached homes: -2.4%
- Townhomes: -1.4%
- Condos: -1.1%
The staring contest between buyers and sellers is in full effect as buyers wait to see if pricing continues to drop, while re-evaluating their potentially declining buying power with the increase in interest rates. Meanwhile, sellers are hoping for the sale prices they saw in the first quarter of the year. The buyers who are ready to pull the trigger also have the pick of the litter when it comes to listings at the number of available homes on the market has tripled since December 2021.
What does this mean for the development land market in the Fraser Valley?
Development land in the Fraser Valley continues to trade, but not as frantically as it was in the first quarter of the year. If you’ve seen our videos, you’ll know our slogan as of late has been buy the dip. No one has a crystal ball to see when the true dip will happen, but with this cooling off period in the market there’s a real opportunity for buyers to secure better terms than they would have gotten a few months ago.
Even amongst the news of interest rates increasing yet again, and the forecasting of where they might end up later this year, it’s important to recognize that real estate can be considered more stable than other asset classes even when faced with atypical economic factors.
Check out our curated summary of the Fraser Valley Real Estate Board’s May stats in our infographic below.
View the Fraser Valley Real Estate Board’s entire stats package for May 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.