The Fraser Valley real estate market experienced a slowdown in December as both sales and prices declined for the fourth consecutive month. The drop in activity was largely attributed to the impact of higher interest rates, tighter mortgage rules, and lower consumer confidence amid the uncertainty of the global economy.

According to the Fraser Valley Real Estate Board (FVREB), there were 1,012 property sales in December, down 15.2 per cent from November and 28.3 per cent from December 2022. This was the lowest level of sales since December 2019, when the market was recovering from the stress test introduced in 2018.

New listings also decreased by 9.4 per cent month-over-month and 18.7 per cent year-over-year to 1,418 in December, the lowest number since February 2020. The decline in new listings was more pronounced for detached homes, which dropped by 13.8 per cent from November and 25.6 per cent from December 2022.

The drop in sales and new listings resulted in a balanced market condition, with a sales-to-active-listings ratio of 15.5 per cent in December, slightly lower than the 16.4 per cent in November and the 20.9 per cent in December 2022. A balanced market is generally considered to have a ratio between 12 and 20 per cent.

The FVREB president, Baldev Gill, commented on the market situation: “The Fraser Valley market has been adjusting to the changing dynamics of the housing sector over the past year. Buyers and sellers are taking a wait-and-see approach as they monitor the effects of the interest rate hikes, the new mortgage stress test, and the global economic outlook. We expect the market to remain balanced in the near term, with moderate price movements and stable inventory levels.”

The benchmark price for all property types in the Fraser Valley was $1,019,300 in December, down 1.1 per cent from November and 5.6 per cent from December 2022. The benchmark price for detached homes was $1,372,900, down 1.3 per cent from November and 6.4 per cent from December 2022. The benchmark price for townhomes was $669,400, down 0.9 per cent from November and 4.4 per cent from December 2022. The benchmark price for apartments was $488,600, down 0.7 per cent from November and 4.1 per cent from December 2022.

Looking at the three cities of interest, Surrey, Langley, and White Rock, the following trends can be observed:

• Surrey had the highest number of sales in December, with 383 properties sold, followed by Langley with 197 and White Rock with 67. However, all three cities saw a decrease in sales compared to November and December 2022. Surrey’s sales were down 14.9 per cent from November and 29.9 per cent from December 2022. Langley’s sales were down 15.9 per cent from November and 23.8 per cent from December 2022. White Rock’s sales were down 17.3 per cent from November and 32.7 per cent from December 2022.
• Langley had the highest benchmark price for all property types in December, with $1,113,100, followed by White Rock with $1,062,800 and Surrey with $1,008,800. However, all three cities saw a decrease in prices compared to November and December 2022. Langley’s price was down 1.2 per cent from November and 5.8 per cent from December 2022. White Rock’s price was down 1.1 per cent from November and 5.7 per cent from December 2022. Surrey’s price was down 1.1 per cent from November and 5.5 per cent from December 2022.
• White Rock had the lowest number of new listings in December, with 97 properties listed, followed by Langley with 241 and Surrey with 491. However, all three cities saw a decrease in new listings compared to November and December 2022. White Rock’s new listings were down 11.0 per cent from November and 21.6 per cent from December 2022. Langley’s new listings were down 9.4 per cent from November and 17.6 per cent from December 2022. Surrey’s new listings were down 9.3 per cent from November and 19.2 per cent from December 2022.