SURREY, BC – High interest rates kept a lid on sales and listings in the Fraser Valley in 2023, while holding year-over-year price growth to low single digits.

The Fraser Valley region ended the year with 14,713 sales recorded on its Multiple Listing Service® (MLS®), a decline of 4% over 2022 and 23% below the 10-year average. New listings in the Fraser Valley were also at a 10-year low, at 29,610, eight per cent below the 10-year average.

The composite Benchmark home price in the Fraser Valley closed the year at $988,900, down 6% from its 2023 peak in July, but up on the year by 5%.

“Back-to-back mid-year interest rate hikes slowed the market despite strong sales and new listings in the spring,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “This left the market in overall balance for the latter half of the year, albeit at low levels of activity. We anticipate 2024 will bring increased optimism on behalf of buyers and sellers as the Bank of Canada is expected to lower interest rates before mid-year.”

December 2023

For the month of December, the Board recorded 837 sales on its MLS®, a drop of 6% from November, but 17% higher than December 2022.

At 942, new listings dropped by 54% in December, but increased 17% compared to December of 2022. Total active listings for December stood at 4,670, a decrease of 25% month-over-month, but 19% higher year-over-year.

With a sales-to-active listings ratio of 18% for December, the overall market closed out the year in balance. Detached houses closed out 2023 with a ratio of 16%, while both townhomes and apartments remained in seller’s market territory at 29% and 26% respectively. The market is considered balanced when the ratio is between 12% and 20%.

“2023 saw buyers and sellers adjust to new rate realities, and the impact of those high rates were reflected in the low number of sales in the Fraser Valley,” said FVREB CEO Baldev Gill. “However, as rates start to ease, we expect market activity will pick up. This will create opportunities for buyers and sellers who are advised to consult with a professional REALTOR® before jumping into the market.”

On average, properties spent approximately 41 days on the market, with single family detached homes spending 40 days on the market. Townhomes and apartments moved more quickly at 32 and 33 days respectively.

Overall Benchmark prices continued to slide for the fifth month in a row, losing 1.5% compared to November.

MLS® HPI Benchmark Price Activity

Single Family Detached : At $1,471,500, the Benchmark price for an FVREB single-family detached home decreased 1.2% compared to November 2023 and increased 7.1% compared to December 2022.
Townhomes : At $826,400, the Benchmark price for an FVREB townhome decreased 1.3% compared to November 2023 and increased 5.3% compared to December 2022.
Apartments : At $537,600, the Benchmark price for an FVREB apartment/condo decreased 1.4% compared to November 2023 and increased 6.9% compared to December 2022.

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Fraser Valley Closes Out 2023 with Lowest Annual Sales Recorded in 10 Years by FVREB