Half a year. That’s how long the Fraser Valley real estate market has been setting records for total number of sales in each given month, and it is not showing any signs of slowing down.

February 2021 with 2,683 sales saw 115% more sales than February 2020  and 64% more than January 2021. February 2021 was also 88% higher than the 10-year February average. 

Prices are still increasing and homes are now selling even quicker than they have been and with multiple offers becoming fairly standard once again, there is no sign currently of this market slowing down. 

Demand is still likely being fed by historically low interest rates combined with a huge lifestyle shift as a reaction to the pandemic. Add to the fact that the current COVID Protocol we are all adhering to makes it okay to go out and get groceries and other items, but strongly discourages inviting friends or family over for visits. This is directly related to the supply and demand of the housing market as a Buyer is basically “going shopping” while looking for homes, but sellers are almost going against the recommendations of not having anyone in your home. As an industry we are all doing our very best to keep things as safe as possible by spreading showings out, limiting the number of people allowed to visit, restricting the hours that showings are allowed and making sure everyone is adhering to strict mask and sanitizer policies.

Despite the fact that the numbers all look as if prices will continue to increase and multiple offers will remain the norm for some time to come, it is very possible that the market could change back to being more stable quite quickly. I have noticed in the last weekend alone that homes that were having 10-15 offers are now only having 3-5 offers instead. It is very possible that this is just a short-term change and we could see more offers again in coming weeks, or it could be a sign of more balance coming to the market. It is too early to tell at this point; however it is something we will be watching very closely.

Condos have been one sector of the market that, until very recently, have not seen the same level of activity as detached homes and townhomes. This is quite typical as the “wave” of activity usually starts in detached homes then shifts to townhomes and finishes up with condos. At the end of all of this unpredictability we can be fairly sure that we will either see the top end of the market correct back down, or condos will catch up; Either way we will likely see the price difference between condos and detached homes close a little bit over time.

To add a little more fuel to the fire, the total number of available homes at the end of the month of February 2021 was the lowest ever with only 3,484 homes available. The counter point to that is the fact that the board received the second highest amount of listings in a February last month with 3,032 new listings.  For the market to stabilize we will need to see that number of new listings continue to rise at a greater rate than the number of sales in order to have more inventory on hand for buyers to choose from. If inventory remains low, prices will likely continue to climb.

76 out of every 100 homes listed in February were sold. To put this into perspective, 12-20 homes sold per 100 listed is what we would consider a balanced market, and anything higher is a seller’s market, which there is no question we are currently in.

Not only are homes at the highest price they have ever been, but they are also selling faster than ever as well.  The median home listed on the MLS is selling in just 8 days. Most homes are also setting a date anywhere from 4-9 days after listing the home to look at offers, so I would speculate that the number of days would be even lower if this new offer date system were not implemented as widespread as it had been.

The fact remains that while it might be a bit of a chaotic time to make a move, it may be a good time for you depending on your current situation. Of course everyone’s situation is unique and needs a unique plan to navigate in this market, so get in touch with us today to start making a plan to make your next move as smooth and stress free as possible!