Home prices in the Fraser Valley continued their downward trajectory in September, marking the sixth consecutive month of declines. This softening, driven by sustained high inventory levels, appears to be drawing some buyers back into the market, leading to a modest increase in sales compared to the previous month. The market remains firmly in favor of buyers.
The Benchmark price for a typical home in the Fraser Valley experienced a one percent decrease in September, settling at $926,300. This marks a 5.4 percent decline compared to the same period last year. This sustained softening of prices is showing signs of encouraging buyer re-engagement.
Despite the year-over-year dip, September recorded 962 sales on the Multiple Listing Service® (MLS®), a three percent increase from August. While still 28 percent below the 10-year average, this uptick suggests that the more affordable price points are beginning to attract interest. Tore Jacobsen, Chair of the Fraser Valley Real Estate Board, noted, "While recent economic uncertainty seems to have weighed more heavily here in the Fraser Valley, some buyers are beginning to re-engage in the market, a positive signal heading into the fall."
Sellers re-entered the market in September, with new listings increasing by 23 percent month-over-month to 3,447. This surge, coupled with existing stock, has kept overall inventory at decade-high levels, with 10,583 active listings. This represents a one percent increase from August and a significant 17 percent rise from September of the previous year.
The Fraser Valley is firmly entrenched in a buyer's market, with the sales-to-active listings ratio at nine percent in September. A balanced market is typically considered to be between 12 and 20 percent. The average time to sell a home varied by property type: single-family detached homes took 37 days, townhomes 38 days, and condos 39 days.
Baldev Gill, CEO of the Fraser Valley Real Estate Board, commented on the market dynamics, stating, "There is a growing consensus within the housing and development sector calling for greater measures to incentivize investors to help drive new supply growth, which would certainly have a positive impact on affordability."