Market Update | Closing Out 2024 : Fraser Valley Real Estate Trends and What Lies Ahead

Closing Out 2024: Fraser Valley Real Estate Market Trends and What Lies Ahead

The Fraser Valley real estate market experienced a dynamic shift in December 2024, signaling a potential shift as we approach the start of 2025. While a record number of new homes entered the market (35,698, the highest in 10 years), sales activity significantly declined, reaching a 10-year low of 14,570. This substantial decrease, 1% below 2023 and a notable 24% below the 10-year average, underscores the ongoing affordability challenges faced by many prospective homebuyers.

Sales decline as interest rate cuts offer limited relief

Despite the influx of new listings, sales activity notably decreased. Home prices continued their downward trajectory, with the composite Benchmark price experiencing a 2% year-over-year decline. The market maintained a balanced state, with a sales-to-active listings ratio of 16%. Affordability remains a significant obstacle for many homebuyers. While interest rate cuts implemented by the Bank of Canada have provided some relief, the overall cost of homeownership continues to present a considerable challenge.

Housing Prices and Activity Reflect Seasonal Dip in December

December witnessed a notable slowdown in sales activity. Only 994 homes were sold, reflecting a 13% decrease from November. New listings also experienced a sharp decline, with 1,288 new homes entering the market, a 46% drop from November. The composite Benchmark price experienced a slight dip of 0.5% compared to November, marking nine consecutive months of price declines.

December's Key Market Statistics:

• Sales: 994 homes sold
• New Listings: 1,288
• Sales-to-active listings ratio: 16%
• Benchmark price: $965,000
• Year-over-year price change: -2%

In December, the market saw a slight increase in the time it took to sell townhomes and condos. Townhomes spent an average of 36 days on the market, while condos took 38 days. Single-family homes remained relatively stable, with an average of 43 days on market. These trends may continue to evolve as we move into the start of 2025.