As we head into the second month of the year, we continue to see more of the same for the Fraser Valley Real Estate market as we have in the past several months;  Declining sales numbers, and decreasing prices are continuing to correlate with the seemingly ever increasing interest rates, but when will it all stop?

January 2023 has set a couple of records as well. With only 588 sales in the month (Down 13% compared to December 2022, and down 52% from January 2022) it is the slowest start to the year in the last 10 years. With only 1,599 new listings in the month, that is the lowest number we have seen in over 30 years, however, it is certainly worth noting that total inventory numbers are actually up fairly significantly year over year with 77% more homes to choose from now, than just a year ago.

Despite the total inventory numbers recovering, we still have a shortage in the number of homes available to purchase. Many would be sellers are still listing their homes, but not selling as they are still expecting to see the same prices from a year ago, resulting in no potential buyers coming to look at their homes that are simply priced too high.  We do not have any metric to measure the number of “Overpriced” homes on the market, but in my opinion, they are skewing the active listings number to appear higher than it actually is. I am defining “overpriced” in this situation as a home that is listed at a price that a reasonable buyer would not even be searching for or about 15% higher than the market value.

 Regardless of the stats showing the market acting quite slowly, we can likely expect the typical spring market with increased activity in both new listings and sales as we head into the spring. Typically, new listings increase quite drastically as the sun starts shining more, and buyers come out of hibernation to make more sales happen. I certainly would not expect this spring to be anything like last year, but I do think there is certainly a possibility for the market to be more active than it has been since it turned last March/April.

If you are looking to purchase a home, now may be a great time to do so. As I have mentioned several times before, prices appear to be tied quite closely with the increasing interest rates, as rates go up, prices come down. Many economists are forecasting that there will not be any more rate increases, which would likely cause prices to stabilize for the short term. Once prices begin to stabilize, many buyers tend to jump back into the market. If more buyers return, demand will therefor increase, potentially causing prices to increase. While I am certainly not making any claims that the market is going to be more active this year than last, it does appear to be a possibility.

If you are looking to sell, now may be a good time to do so, depending on your property type, and if you are planning on buying back into the market. Detached homes are performing the slowest of all property types, with only 11% of homes listed actually selling. Compare this with attached homes around 23% of listed homes selling, it may make more sense to hold on to your single family home for a while if you can.

If you are looking to both sell and buy, it is all relative as you are buying and selling in the same market. It may take longer for your home to sell, but you will also be less rushed when it comes to purchasing. If you are in the situation where you could buy your next home, but hold onto your current home for a few years, it may be quite lucrative to do so, assuming prices eventually recover.

All in all, despite the slow numbers in the market, it may be a great time for you to make a move happen. Your situation is unique, so lets make a unique plan that fits your needs to make your next move happen. Get in touch with me with any questions or plans you might have regarding the real estate market.