In October, Fraser Valley Real Estate Board says home sales in the region increased for the first time in five months, following another interest rate cut by the Bank of Canada.
The FVREB recorded 1,330 sales during the month, up 35 per cent from September and 37 per cent year-over-year, signs of a possible market shift.
“After waiting it out on the sidelines for a number of months, buyers seem to be finally responding to the series of successive rate cuts by the Bank of Canada,” Jeff Chadha, board chair, said in a news release posted to fvreb.bc.ca.
“Whether this is an indication of further sales trends, remains to be seen, especially as the feds eye a possible additional cut before year-end.”
The FVREB covers North Delta, Surrey, White Rock, Langley, Abbotsford and Mission.
Benchmark prices in the region dipped for the seventh straight month in October, with the composite benchmark price down 0.7 per cent to $971,700.
Across the Fraser Valley in October, the average number of days to sell a single-family detached home was 34, while for a condo it was 32. Townhomes took 29 days to sell, on average.
New listings declined in October, down five per cent to 3,194, but increased 26 per cent year-over-year.
Overall inventory dipped in October to 8,799, down three per cent from September, but up 34 per cent over last year.
“October’s healthy sales boost is a welcome development for buyers and sellers alike,” said Baldev Gill, CEO of Fraser Valley Real Estate Board.
“The coming weeks and months will shed more light on whether buyer optimism has returned now that the cycle of interest rate cuts is in full swing.”
The recent uptick in home sales is a welcome change for the Fraser Valley market, according to Derek Fenton, vice-president of Zenterra Developments, involved in a number of projects in Surrey and Langley with close to 1,000 units under construction.
“With the Bank of Canada interest rate cuts breathing new life into the region, we're witnessing a wave of enthusiasm that is energizing buyers," Fenton stated. "This revitalized activity signals a positive shift, suggesting the market is poised for a period of growth and opportunity – something the development industry has been eagerly awaiting.”
With the possibility of additional interest rate cuts on the horizon, there is "cautious optimism" about the potential for sustained growth, Fenton added.
"The market's current balanced conditions offer a stable platform for ongoing development and investment. This period could also set the stage for a dynamic evolution in real estate, fostering a landscape where developers will have to set themselves apart by delivering quality homes and competitive amenities.”
Rising sales and steady inventory levels have the Fraser Valley in a balanced market with a sales-to-active ratio of 15 per cent, according to the FVREB. The market is considered to be balanced when the ratio is between 12 per cent and 20 per cent.
Detailed stats posted are posted as a 12-page PDF on fvreb.bc.ca/statistics/Package202410.pdf.
