As March draws to a close, we have seen another month of inventory building and more balance in the market.  Overall, there feels to be a little bit more calmness in the air than the last several months, and while the market is still hot, it is not quite as hot as it has been. Multiple offers are still happening, but with fewer offers per home, open houses are not typically seeing line ups out the door, and for the most part, homes can be viewed outside of the 2 hour showing windows that were so prevalent over the last year.

In March 2022, the Fraser Valley Real Estate Board saw 4,339 new listings which is 10% fewer than we saw in March 2021, but a 22% increase compared to February 2022.

Active inventory numbers have gone up to 4,162 listings at the end of March 2022, which is still quite low, but it is a massive improvement from previous months’ historically low inventories. For comparison, February 2022 finished with 3,471 active listings and March 2021 finished with 4,624 active listings. If these active inventory numbers continue to build through spring, a more balanced market will likely come with it.

March 2022 saw 2,491 sales in the month, a decrease of 23% compared to March 2021, but an increase of 41% compared to February 2022. While sales have remained strong, we have had many more listings added than we have been seeing over the last several months, which helps to better balance supply and demand, and while prices did still increase month to month, they did not increase as much as previous months which is likely indicative of some upcoming stability in the market.

The HPI average home in the Fraser Valley has increased by 4% compared to February 2022, and 40% compared to March 2021. This is an improvement towards stability in the market, as Jan 2022 to Feb 2022 saw an increase of 6%. As prices continue to stabilize, we will likely see these numbers level out even more.

We do have to recognize that with the prices stabilizing, that does not necessarily mean that affordability is stabilizing. Interest rates are steadily increasing, which will mean that every dollar of purchasing power will decrease with every rise in the interest rate.  The affects of rising rates on prices is often delayed as buyers will be locked into older rates for a few months. I do not predict seeing prices dropping in most types of homes and areas, rather I think they will continue to stabilize which will give more predictability.

While the average home is still selling above its asking price, this trend will likely be changing over the next couple of months as well.  When a market shifts towards stability from a climbing market like we were in, the pricing of homes becomes a bit of a balancing act as many buyers are still expecting to pay above the asking price.  More and more homes will likely start to list at or even slightly above their market value and buyers may be able to start making offers below the asking price again. Keep in mind when I say this that there are no real rules as to what an asking price can be, as it is up to the sellers to decide what to list their home at, but it is up to a seller and a buyer to agree on what both parties feel is a fair price. I have seen some homes (who were listed way too high) sell below their asking price, but on average for March 2022 homes were selling at 105% of their asking price. This is down from February 2022’s 110%, but up compared to March 2021’s 102%.  I would not be surprised to see this shift below 100% in the next few months.

If you are looking to make a move in the near future, whether buying selling or both, I think the likeliness of stability makes it a great time to do so.  Buyer’s may want to act a little quicker as the pressure of increased interest rates may begin to push some would be buyers out of the market, but overall, I think it is a great time to buy, sell or both!

Like always, if you are planning on making a move, or even just thinking about, be sure to reach out sooner than later so we can start making a plan for your unique situation.