Infographic: Fraser Valley Residential Real Estate December 2023
BY Justin Mitchell, Adam Lawrence, Megan Johal & Sam Taktsang
In 2023, the Fraser Valley faced challenges due to high interest rates, resulting in a decline in both home sales and new listings. This kept the overall market activity low throughout the year. Despite the slowdown, the region’s housing prices remained relatively stable, with a modest increase by the end of the year. The market experienced a balanced sales-to-active listings ratio, indicating a level playing field between buyers and sellers. Looking ahead, the anticipation of lower interest rates in 2024 is expected to bring renewed optimism and potentially stimulate more activity in the market.
These residential market statistics from the Fraser Valley Real Estate Board provide insight into the current state of the residential home market, including home values, which directly impact the development land market. Contact us today if you would like to learn what your property is worth on the development land market.
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KEY TAKEAWAYS FROM DECEMBER 2023 FRASER VALLEY RESIDENTIAL MARKET
In December 2023, the Fraser Valley saw a drop of six percent in sales from November, but a 17 percent increase compared to December 2022.
Back-to-back mid-year interest rate hikes slowed the market, leading to an overall balance in the latter half of the year.
The region ended the year with 14,713 sales recorded on its Multiple Listing Service® (MLS®), which was 23 percent below the 10-year average.
HPI Benchmark Price of Detached Homes
Despite the limited activity, the composite Benchmark home price in the Fraser Valley closed the year at $988,900, which was a five percent increase over the year.
Sale Price As a Percent of Original List Price
The average sale price as a percentage of the original list price remained consistent, showing only minor changes across different property types. Condos experienced the most significant decrease, with a -0.4% change, followed by detached homes at -0.3%, and townhomes at -0.2%. Despite these slight fluctuations, the market generally maintained stability in terms of sale prices compared to the original listing prices for these property types.
Days on Market
The average number of days that properties spent on the market showed minimal variations across different property types in December 2023. Condos experienced the most significant change with an increase of 2 days, bringing the average to 33 days. Detached homes saw a slight increase of 1 day, reaching an average of 40 days on the market. Townhomes, on the other hand, remained relatively stable at an average of 32 days. Despite these slight changes, the overall trend indicates a relatively steady market for the duration that properties remained listed before being sold.
Fraser Valley ReSIDENTIAL REAL ESTATE: DECEMber 2023 statistics in infographics
HPI Benchmark Prices
The Home Price Index (HPI) measures the price of a benchmark, or typical, property in a given market and is not influenced by the change in composition of properties sold, which can fluctuate quite significantly from month to month. As a result, this metric is a more pure and stable representation of market price change than average or median prices.
The HPI prices for all property types across the Fraser Valley experienced a reduction across all product types reducing 1.5% compared to November. Despite this reduction, the benchmark prices for each property type remains higher than those of the same period in 2022 by 5%.
Sales • New Listings • Active Listings
The sales-to-active listings ratio for December was 18 percent, indicating a balanced market, with detached houses at 16 percent and townhomes and apartments in seller’s market territory at 29 and 26 percent, respectively.