Over the past few months, the housing market slowed considerably in the Fraser Valley, though prices remained notably stable. As the number of new listings declined, so did the number of buyers shopping for property. This created a balanced state where supply and demand met, allowing prices to hold constant. For example, new listings for detached homes in Mission in May 2020 real estate saw a 44% drop from May 2019. Similarly, sales for these homes also dropped by 60%. Despite these shifts, benchmark house prices in Mission still rose by 2%. This highlights the inherent resilience in property values even during periods of reduced activity.
A Balanced Market Emerges
The Sales-to-Active Listings Ratio for all types of housing in the Fraser Valley reached 12% in May 2020 in real estate. This figure indicates a perfectly balanced market, a significant shift from the intense seller’s market seen previously. The Fraser Valley Real Estate Board (FVREB) processed a total of 805 sales on its Multiple Listing Service® (MLS®) in May. This represented an encouraging 17% increase compared to sales in April.
Chris Shields, President of the Board, observed, “This is an encouraging sign. Real estate is an essential service and it’s one of the most important economic drivers in BC’s economy”. This underscores the critical role the housing market plays in broader economic recovery.
Looking Ahead: Confidence and Growth
Now, as things begin to return to normal, a surge in confidence is palpable. Sellers who had previously held back are now ready to market their properties. Similarly, buyers are actively contacting Realtors for assistance with their property searches. This renewed interest signals a positive trajectory for the coming months.
I expect gradual, sustainable growth throughout the year. The 2020 market could very well return to its seasonal norms by summer and fall. This period offers unique opportunities for both buyers and sellers to achieve their real estate goals in a more predictable environment.
For more detailed insights, read the FVREB Statistics Package here.