Your Real Estate Market Update - May 2023 | april Recap

May 2

Fraser Valley & Greater Vancouver at a Glance

Market Summary

A Positive Trend Upwards

The real estate market in both Greater Vancouver and the Fraser Valley has shown an upward trend in April 2023. The average prices of detached homes, townhomes, and apartments in the Fraser Valley have gone up by 5.1%, 2.9%, and 2.6%, respectively. This trend is also reflected in the overall average prices, which have gone up by 6.2% month over month in the Fraser Valley alone. It is clear that the idea of winter being the bottom of the market was accurate, and we are now seeing a positive trend upwards.

Why is this happening?

The recent rise in real estate prices can be attributed to several factors. Low inventory has been a persistent issue for the Canadian housing market, coupled with the growing demand for housing. The length of time it takes to construct new homes has also contributed to the shortage of available properties. Additionally, the pandemic has led to many people working from home, which has increased the demand for larger living spaces. All these factors have resulted in a competitive market with buyers willing to pay higher prices.

What does the future look like?

Despite the possibility of higher rates in the future, the recent positive price action suggests that the real estate market will continue to heat up. If the government announces that they will no longer raise rates or even lower them, it is expected that the market will become even more competitive. Summer is expected to be a hotter season for the real estate market. Depending on how the Canadian Bank affects interest rates, we may see the price action of 2021 rivaled, if not surpassed by year-end.

Looking at the Stats

In April 2023, the average prices of detached homes, townhomes, and apartments in the Fraser Valley have gone up by 5.1%, 2.9%, and 2.6%, respectively. The trend is consistent across all of the Fraser Valley and Greater Vancouver, with average prices going up 6.2% month over month in the Fraser Valley alone. (Please see the graph for a visual representation.)

Data Courtesy of Fraser Valley Real Estate Board.

What does this mean for you?

First-time Buyers & Families

For families who are considering buying their first home, it is important to get pre-approved for a mortgage. With prices moving up without interest rates raising, recent price movements have built families pure equity. When/if the government decides to lower rates, you will see prices begin to reflect new rate affordability. Therefore, buyers should be prepped and ready to buy if they are looking to enter the market.

Thinking about Listing?

If you are a potential seller who isn't in a rush to sell, consider holding off until Summer when we could see even more price increases. If you're looking to upgrade, consider selling after you've bought to bank the most amount of equity possible. Since trends are just changing, there's no telling what the market will look like in 3-6 months. Take your time, calculate your options, and formalize a plan.

New & Veteran Investors

If you're an investor looking to develop or reno, now is the time to start looking at deals that make sense. Keep in mind that the market is still recovering, and not all areas are created equal. Some areas may have more potential for growth than others. However, if you can find a good deal that fits your investment criteria, then you may be able to benefit from rising prices and growing demand in the future.

Overall, the current real estate market in the Fraser Valley and Greater Vancouver is showing positive signs of recovery, with prices on the rise across all home types. Whether you're a first-time homebuyer, a family looking to upsize, or an investor looking for opportunities, it's important to keep an eye on the market and stay informed to make the best decisions for your situation.