Sluggish Sales and High Inventory Signal Shift Toward a Buyer’s Market
As the Fraser Valley housing market heads into the fall of 2024, signs of a buyer’s market are emerging. A combination of declining sales and rising inventories suggests that the region’s real estate landscape is shifting, favoring buyers who are closely monitoring the market amid fluctuating economic conditions.
Market Performance Overview
September 2024 saw only 982 property sales, a figure that reflects an 8% decline compared to August 2024 and a significant 10.7% drop compared to September 2023. This makes it the second-slowest September sales performance in a decade. With sales now trending about 30% below the 10-year average, the Fraser Valley real estate market is experiencing its lowest seasonal activity in years.
According to Jeff Chadha, Chair of the Fraser Valley Real Estate Board (FVREB):
“With three interest rate cuts already in place and further reductions expected before year-end, buyers are carefully timing their purchasing decisions.”
Despite this, the market has yet to see a substantial uptick in transactions. Chadha emphasizes that while conditions appear to favor buyers, particularly in the detached housing market, a gap remains between buyer expectations and current asking prices. As a result, many properties are lingering on the market longer than usual, waiting for price adjustments or further interest rate cuts.
Rising Inventory Levels Push Toward Buyer’s Market
The inventory of homes for sale in the Fraser Valley continues to grow. September saw 3,352 new listings—a 21% increase from August 2024 and a 17% rise year-over-year. Total active inventory rose by 5% from August, reaching 9,045, which is a 39% increase over September 2023.
This rise in listings, coupled with slower sales, has contributed to a more balanced market, with certain segments—particularly detached homes—shifting towards a buyer’s market. Baldev Gill, CEO of FVREB, notes:
“Demand among buyers is evident, but many are waiting on the sidelines due to affordability concerns or needing to sell their current home before purchasing a new one. Until these challenges are resolved, we expect to see continued weakness in sales.”
Property Sales Timing and Price Trends
In terms of how long properties remain on the market, September statistics show that detached homes took an average of 35 days to sell, while condos averaged 37 days on the market. Townhomes, being slightly more in demand, sold within an average of 30 days. These extended selling times reinforce the sluggishness of the market.
Benchmark Prices in Decline
- Single-Family Detached Homes: The benchmark price for detached homes in the Fraser Valley dropped by 1.5% month-over-month, settling at $1,501,100. This represents a 1.3% decline compared to the same period in 2023.
- Townhomes: Townhome prices also experienced a downward trend, with the benchmark price falling 1.4% from August 2024, reaching $834,400. Compared to September 2023, this marks a 1.6% decrease.
- Apartments/Condos: Apartment benchmark prices saw a slight decrease of 0.2% from August 2024 but showed a small 0.4% increase year-over-year, bringing the average to $545,000.
Housing Market Snapshot (September 2024)
| Property Type | Benchmark Price | Change Month-over-Month | Change Year-over-Year | Avg. Days on Market | Sales-to-Active Listings Ratio | Sales Count |
| Detached | $1,501,100 | Down 1.5% | Down 1.3% | 35 days | 10% | 317 |
| Townhome | $834,400 | Down 1.4% | Down 1.6% | 30 days | 19% | 263 |
| Apartment | $545,000 | Down 0.2% | Up 0.4% | 37 days | 13% | 296 |
Conclusion and Market Outlook
With rising inventories and slower sales, the Fraser Valley is increasingly moving towards a buyer’s market. However, affordability remains a challenge for many prospective buyers, and current sellers may need to adjust their asking prices to match market realities. Buyers and sellers alike are advised to consult with a REALTOR® to better understand the risks and opportunities presented by the market’s current conditions: https://www.primepropertygroup.ca/about/contact/