Image: Point2Homes / An Abbotsford home for sale at 2736 Aquila Drive with an asking price of $1,799,900. High interest rates kept buyers at bay as real estate sales in the Fraser Valley in 2023 were the lowest recorded in 10 years, according to the Fraser Valley Real Estate Board, which expects the Bank of Canada to possibly lower interest rates in 2024. 

By Mike Vanden Bosch

Fraser Valley real estate sales

Fraser Valley real estate sales finish off 2023 as the slowest in 10 years: FVREB

Jan 4, 2024 | 8:28 AM

SURREY — High interest rates kept buyers at bay as real estate sales in the Fraser Valley in 2023 were the lowest recorded in 10 years, according to the Fraser Valley Real Estate Board.

The Fraser Valley region from White Rock to Abbotsford, including Langley, Mission and Surrey, ended the year with 14,713 sales recorded on its Multiple Listing Service, a drop of 4 per cent over 2022, and 23 per cent below the 10-year average. New listings in the Fraser Valley were also at a 10-year low at 29,610 units, eight per cent below the 10-year average.

The composite benchmark home price in the Fraser Valley finished the year at $988,900, down six per cent from its 2023 peak in July, but up on the year by five per cent.

“Back-to-back mid-year interest rate hikes slowed the market despite strong sales and new listings in the spring,” said Narinder Bains, FVREB chair. “This left the market in overall balance for the latter half of the year, albeit at low levels of activity. We anticipate 2024 will bring increased optimism on behalf of buyers and sellers as the Bank of Canada is expected to lower interest rates before mid-year.”

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For the month of December, the Board recorded 837 sales on its MLS^®, a drop of six per cent from November, but 17 per cent higher than December 2022.

At 942, new listings dropped by 54 per cent in December, but increased 17 per cent compared to December of 2022. Total active listings for December stood at 4,670, a decrease of 25 per cent month-over-month, but 19 per cent higher year-over-year.

With a sales-to-active listings ratio of 18 per cent for December, the overall market closed out the year in balance. Detached houses closed out 2023 with a ratio of 16 per cent, while both townhomes and apartments remained in seller’s market territory at 29 and 26 per cent respectively. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

“2023 saw buyers and sellers adjust to new rate realities, and the impact of those high rates were reflected in the low number of sales in the Fraser Valley,” said FVREB CEO Baldev Gill. “However, as rates start to ease, we expect market activity will pick up. This will create opportunities for buyers and sellers who are advised to consult with a professional realtor before jumping into the market.”

On average, properties spent approximately 41 days on the market, with single family detached homes spending 40 days on the market. Townhomes and apartments moved more quickly at 32 and 33 days respectively.

Overall Benchmark prices continued to slide for the fifth month in a row, losing 1.5 per cent compared to November.

MLS HPI Benchmark Price Activity

• Single Family Detached: At $1,471,500, the Benchmark price for an FVREB single-family detached home decreased 1.2 per cent compared to November 2023 and increased 7.1 per cent compared to December 2022.
• Townhomes: At $826,400, the Benchmark price for an FVREB townhome decreased 1.3 per cent compared to November 2023 and increased 5.3 per cent compared to December 2022.
• Apartments: At $537,600, the Benchmark price for an FVREB apartment/condo decreased 1.4 per cent compared to November 2023 and increased 6.9 per cent compared to December 2022.

The Fraser Valley Real Estate Board is an association comprising 5,126 real estate agents who live and work in Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock.