September 22, 2023 Fraser Valley September 2023 Pre-Sale Pulse


September 2023 Fraser Valley Real Estate Market Insights

Welcome to the September 2023 Fraser Valley Presale Pulse episode, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, pre-sale, and resale trends over the last 30 days affecting the local real estate market across the Fraser Valley. In this month's episode of the Pre-Sale Pulse: 

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A Tale of Two Contrasting Markets in Fraser Valley and Burnaby

The pre-sale market in the Fraser Valley presents a distinct contrast to the bustling activity observed in markets like Burnaby. Unlike the surge of concrete tower developments in Burnaby, the Fraser Valley has predominantly seen the launch of wood frame projects, exemplified by offerings such as Unison in Langley and the latest building at Hartley in Surrey. The challenges faced by developers in the Fraser Valley include high land costs and construction constraints. Moreover, the recovery of property values has been slower in the Fraser Valley compared to Greater Vancouver, leading to further adjustments in pricing expectations. As market confidence returns, driven by factors like the recent Bank of Canada interest rate hold, it is expected that the Fraser Valley will witness increased activity. The Fraser Valley market, while distinct from Burnaby, continues to show potential for growth as market conditions evolve.

Resale Market In Focus: Summer Slowdown and Fall Expectations 

Fraser Valley's resale market experienced declining sales for the second consecutive month following a peak in June when it reached a 15-month high. With 1,273 sales in August, there was an 8.2% decrease compared to July, yet this figure remained impressively 28.2% higher than August of the previous year. This dip is attributed to the anticipated summer slowdown and the impact of the 25-basis point interest rate hike introduced in July. Despite the decline in sales, the market retained its seller's edge, especially for certain property types such as townhomes and condominiums, boasting sales-to-listings ratios of 38% and 32%, respectively. The delayed summer slowdown this year raises curiosity about how the fall season will unfold, traditionally a time for increased sales activity. Many potential buyers have held off on purchasing during the past couple of months in anticipation of potential interest rate changes. While active listings saw a steady increase since May 2023, indicating more options for buyers, there's a drawback: the number of new listings per month has declined, with August witnessing a 9% decrease from July. This may suggest that the true supply of desirable properties is lower than overall supply figures suggest, as some properties have lingered on the market for months. 

Pre-Sale Projects Covered in this Episode

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