Surrey and Fraser Valley home sales continued to rise and move forward, according to the Fraser Valley Real Estate Board (FVREB) April 2021 report. New listings reached the highest volume in March, but the pace continued and even climbed in April.
Per FVREB, April made a record-breaking eighth consecutive month of home sales in Surrey, White Rock, Langley, North Delta, Mission, and Abbotsford.
Currently, White Rock-South Surrey is in a Seller Market. Its listing inventories showed an average of a 99% Sell/List Ratio – a $13,000 discount on a home sale from the original tag price – and 24% SOLD rates. White Rock-South Surrey is forecasted to continue in a Seller market.
Is the Surrey, BC Housing Market Cooling Off?
Fraser Valley’s remarkable real estate market continued its record-breaking sales for the ninth consecutive month in May. Sales on the FVREB’s Multiple Listing Service stayed strong in June, but monthly sales failed to surpass a historical record for the first time since last September.
The Surrey and Fraser Valley reports seemed to show signs of cooling down in home sales. Is the party over for a market that has been on a winning streak for months?
Experts Project Home Sales in BC to Drop by 21% in 2022
BC home sales will maintain an upward path over the short term to keep its seller’s market position in 2021. However, this trend is viewed as unsustainable, with real estate conditions expected to return to normal in the second half of 2021, as indicated in Central 1’s latest forecast.
April is the eighth month of a consecutive record-breaking run in home sales until Fraser Valley Realtors observed subtle signs of a gradual cooling down in the market.
FVREB president Larry Anderson in a media release said, “In June, we shifted from an extreme seller’s market to a strong seller’s market. Although demand for Fraser Valley homes remains very high – over 40 percent of active listings sold in June – we’re seeing the market settle down giving buyers and sellers more room to maneuver.”
Anderson said that signs like the drop in multiple and subject-free offers, and over-priced homes sitting longer is “evidence of a change in pace.”
The major factors in the current real estate boom are low borrowing costs and the change in household preferences during the pandemic. These factors are beyond the policy makers’ control and are expected to decline when pandemic conditions relax.
After 2021, increases in price and sales volumes, particularly of homes outside urban areas, are predicted to decline as a result of general vaccinations, which can dampen buyer interest in suburban living.
The resumption of businesses with work from home as a hybrid model, and households setting aside more money for leisure services and travel, will also be contributing factors to slow down market activity.
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