January 2023 Fraser Valley Real Estate Market Insights
Welcome to the January 2023 episode of the Fraser Valley Presale Pulse, a real estate show brought to you by hosts Ryan Lalonde 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.
This episode covers the following:
Presale Launches of Lucent and The Loop - 1:20
In January, two new presale developments hit the market: Lucent by Landa Global Properties and The Loop by Gramercy. The Lucent project is targeting around $1,000 per square foot and has already seen 140 deals in rescission, which represents 35% of its total inventory. The marketing campaign was successful, with over 700 realtors visiting the presentation center in just one week. However, the high price points seen at the peak of the market remain uncertain for developers. The Loop is located in Grandview Heights and offers attractive finishes, a prime location close to White Rock Beach, quality schools, and a two-story amenity building called "The Hideaway." With prices ranging from high-$700k to just below $1.1 million and selling for just under $650 per square foot, The Loop has sold 30% of its released inventory, or 10 deals to date.
Resale Market Sees Decline in January - 3:46
The resale market experienced a decline in January with a 13% decrease compared to the previous month and a 52% drop compared to last year. The main cause of this decline was the interest rate hikes, which kept buyers away from the market. Although the decline is real, the market is expected to adjust to the higher interest rate environment by late-spring, making the stats look better. Unfortunately, the month-over-month stats can also fuel unnecessary concern in the market.
The Best Time to Enter the Real Estate Market - 4:45
The real estate market is a long-term investment, and it's important to have a long-term perspective. However, people's emotions usually guide buying decisions, and this can lead to unnecessary concern in the market. For those on the sidelines looking to enter the market, it's recommended to find a trustworthy realtor and mortgage broker, keep in conversation with them, and be proactive in identifying what you're looking for. We expect that there will be a time in the coming months where lending conditions have improved and sellers are still willing to sell at a discount, making that the most opportune time to enter the market.
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