January 2024 Fraser Valley Real Estate Market Insights
Welcome to the January 2024 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, presale, 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 Presale Pulse:
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The Return of Optimism: Fraser Valley's Presale Market Gears Up for Growth
In December, the Fraser Valley presale market exhibited a quiet period, typical of the holiday season. However, it anticipates a surge in activity in the coming months fueled by stable interest rates and a growing consumer confidence in the potential decline of rates in 2024. This expected rebound coincides with the Lunar New Year, historically a time for significant incentives and promotions in real estate. While the market remains soft, there's a nuanced shift in supply dynamics compared to the previous year, with certain projects achieving substantial sales in late 2023, potentially reducing the pressure for developers to offer extensive incentives. Notably, Surrey City Centre is witnessing a rise in prominence for concrete towers, exemplified by upcoming launches such as Intersect (Parkway by Bosa's second phase), Piano by Concord Pacific, Juno by Streetside Developments, SkyLiving Phase 2, and Georgetown 3 by Anthem. This trend mirrors the clustering of concrete tower launches, reminiscent of the Metrotown scenario in the fall. The increased confidence in launching such projects is attributed to optimism returning to the market, particularly in Surrey City Centre, bolstered by the UBC expansion and sky train extension, making it an appealing location for both investors and end-users.
Fraser Valley Amidst Economic Flux in December
In December, the Fraser Valley resale market saw a gradual slowdown in sales activity, with 837 resales recorded, marking a slight increase compared to the previous December but remaining 27% below the ten-year average for December. The year concluded with a total of 14,713 sales, representing a 23% dip from the ten-year average and the lowest annual sales in the past decade. Despite facing challenges such as high-interest rates throughout the year, there's optimism for the future as rates have remained steady for the past few announcements and are anticipated to gradually decrease in 2024. Total inventory witnessed a notable decline of over 25% in December, a common trend during the holiday season, and although it may sound significant, it remains over 15% above the 10-year average for total inventory in December. This decrease in demand coupled with increased supply has created favourable conditions for potential buyers entering the market. Additionally, prices have continued to decrease for the fifth consecutive month, with benchmark pricing across the Fraser Valley now at $988,900, representing a 1.5% decline from the previous month and sitting 17% below peak values seen in March 2022. The market dynamics, coupled with a detailed analysis of inventory and pricing, provide valuable insights into the Fraser Valley resale market as it concludes the year.
Presale Projects Covered in this Episode
- Ashleigh - Peterson
- Piano - Concord Pacific
- Parkway (Intersect) - Bosa Properties
- Juno - Streetside Developments
- Skyliving - Allure Ventures
- Georgetown 3 - Anthem
Links mentioned in this episode:
- January 2024 Presale Pulse Report
- MLA Advisory Services and Sample Reports
- Contact Advisory
- Subscribe to MLA Newswire
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