In 2024, the Fraser Valley’s housing market faced unique challenges that had many home buyers feeling uncertain. Despite efforts by the Bank of Canada to cut interest rates mid-year, it was not enough to tackle the affordability issues many potential buyers were experiencing. Let’s break it down and see what happened, why, and what the outlook for 2025 might be!
A Closer Look at Sales and Listings 📊
The Fraser Valley Real Estate Board reported a notable increase in new listings, with 35,698 new homes listed in 2024. That’s a 10-year high, coming in 9% above the 10-year average. Sounds promising, right? But here’s the twist: annual home sales dropped to just 14,570, which is the lowest number in a decade! In fact, that’s a 24% decrease compared to the 10-year average.
Where were the sales happening?
Surrey: 51% of sales
Langley: 24% of sales
Abbotsford: 15% of sales
Home Prices: A Small Dip, But Not Enough 💸
While there was some relief on pricing for buyers, the change was modest. The benchmark home price ended the year at $965,000, down 2% compared to 2023. Prices peaked in March 2024, but by December, they had dropped by 4%. Still, for many buyers, affordability remained a concern.
Market Balance: Buyers & Sellers in Limbo ⚖️
Despite the lower prices, sellers were still active in the market. December saw a 46% drop in new listings, and overall inventory decreased by 23%. The sales-to-active listings ratio closed out the year at 16%, signaling a balanced market. This means the supply and demand were in equilibrium – but that doesn’t always mean an easy process for buyers.
Looking Ahead: A Hopeful 2025? 🌟
What does 2025 have in store?
Interest Rate Cuts: The Bank of Canada’s rate cuts, combined with new government policies aimed at improving affordability, should bring positive momentum to the market.
Supply & Demand Adjustments: As more homes enter the market and buyers adjust to new conditions, we can expect a steadier market next year.
So, whether you’re buying or selling in 2025, patience and strategy will be key. Let’s navigate this evolving landscape together! If you’re looking for sound advice, reliable market insights, and a helping hand, don’t hesitate to reach out. 😊
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.