Spring Inventory Continues to Build in the Fraser Valley to Levels Not Seen in Nearly Five Years

In May, the real estate market in the Fraser Valley experienced significant changes as inventory levels soared to heights not seen since September 2019. Slower seasonal sales contributed to this build-up, leading to more balanced market conditions for both buyers and sellers. This article explores the latest statistics and trends to provide a clear picture of the current real estate market in Surrey, BC.

Record High Inventory Levels

May saw a substantial increase in active listings in the Fraser Valley, reaching 7,904—a rise of 8.1% from April and an impressive 42.2% increase compared to May 2023. These figures place the current inventory levels 19% above the 10-year average, a milestone last achieved in September 2019.

This increase in supply is largely due to slower seasonal sales, which have allowed inventory to accumulate. Jeff Chadha, Chair of the Fraser Valley Real Estate Board, noted that the growing inventory is fostering a healthier market balance, providing buyers with more options and stabilizing prices.

Seasonal Sales Remain Slow

Despite the increase in available homes, sales remained modest in May. The Fraser Valley Real Estate Board recorded 1,517 transactions on its Multiple Listings Service® (MLS®), up 3.1% from April but down 11.3% compared to May 2023. These sales figures are 21% below the 10-year average, indicating a slower-than-usual market.

Year-to-date sales in 2024 totaled 6,549, marking a slight increase of 3.3% compared to 6,339 sales in the same period in 2023. This modest growth reflects the cautious sentiment among buyers amid fluctuating market conditions.

New Listings and Market Balance

New listings in May were slightly lower than in April, decreasing by 5.4% to 3,760. However, this still represents a 6.4% increase compared to May 2023. Year-to-date new listings have seen a significant rise, totaling 15,888 in 2024—a 28.7% increase over the 12,341 new listings in the same period last year.

The sales-to-active listings ratio in May was 19%, indicating a balanced market where neither buyers nor sellers have a distinct advantage. This ratio falls within the typical range of a balanced market, which is between 12% and 20%.

Buyer Caution and Market Outlook

Baldev Gill, CEO of FVREB, highlighted the uncertainty surrounding potential interest rate cuts in the latter half of the year. While some predict rate reductions, there is no consensus on the magnitude or timing. Gill advises buyers to have detailed discussions with their REALTORS® to understand how these market conditions might impact mortgage rates and purchasing decisions.

Average Days on Market

The average number of days homes spend on the market saw a slight increase in May:

• Single-family detached homes: 25 days, up from 23 in April.

• Townhomes: 20 days, up from 19 in April.

• Condos: 23 days, unchanged from April.

This increase suggests that while inventory is rising, properties are taking slightly longer to sell, reflecting a cautious buyer sentiment.

Steady Benchmark Prices

Benchmark prices in the Fraser Valley remained relatively flat in May, with the composite Benchmark price down 0.2% from April and 0.8% lower than May 2023. The average price in May was $1,066,196, reflecting a 2.2% decrease from May 2023 but a 2.5% increase from April 2024.

Additional Resources

• Real Estate Affordability Calculator: Calculate what you can afford in the current market.

• Complimentary Home Evaluation: Find out the value of your home with a free evaluation.

• Home Search: Explore available properties and find your next home.

• Current Market Insights: Stay updated with the latest market trends and news.

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Disclaimer

This article is intended for informational purposes only and does not constitute professional advice. Always consult with a qualified real estate professional before making any real estate decisions.

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Navigating the real estate market can be complex, but with the right information and expert guidance, you can make informed decisions. Whether you're buying or selling, staying updated on market trends and leveraging professional expertise is key to achieving your real estate goals in Surrey, BC.