Key Take-Aways from the February Statistics
All key metrics in the Fraser Valley Real Estate Board’s February home sales data are indicating the market has reached a turning point. Sales are up, days on market are down and Benchmark Prices are back on the rise! With the prospect of interest rate decreases on the horizon, we could be in for a strong Spring market.
Highlights from the February statistics include:
- An INCREASE in Benchmark Prices for all home types, with single family leading the pack at 1.3% higher than last month, after 6 months of falling prices.
- Healthy but somewhat typical growth in the quantity of sales, 21-37% depending on home type.
- A significant reduction in the average days on market with most home types selling 15-25% faster than in January.
- A significant jump in sales, month-over-month, which has only been seen one other January in the past 10 years.
- A 14%-34% increase in new listings but with sales up and days on market down, total active listings still came up short on the 10-year average for February.
- Ultimate sale prices rising closer to the original list price but landing just below the 10-year average.
How the Fraser Valley land market is reacting
Confidence is back and so are multiple offers on any development land that is priced well. In most circumstances, that still means 15-20% below peak pricing of 2 years ago. Similarly, inbound inquiries continue to rise for residential development land of all shapes and sizes, and listing launches are seeing an instant flood of interest if the opportunity is priced to market.
After 18-24 months of sitting on the sidelines and a renewed ability to underwrite land deals with some certainty, nearly every single developer/investor has stepped back onto the playing field in search of their next land acquisition.
While there is no shortage of demand for land, the lending environment remains extremely challenging for many so diligently qualifying the potential purchaser is more important than ever if you are actively selling land. This presents an opportunity for well known brands, those sitting on cash or those with strong financing partners.
A snapshot of key metrics
February 2024
Detached homes
The single family detached home market is consistently the first segment to move, either up or down, when the market is shifting. As a result, we look to this segment as an indicator for market directionality and velocity.Home sales in the Fraser Valley
The following charts summarize the month’s total home sales throughout the Fraser Valley.Days on Market
Days on Market is the average length of time listings of that home type stayed on market before selling firm. This metric is an indicator of competition among buyers and the month-over-month change can tell us whether the market is accelerating or decelerating.New and active listings in the Fraser Valley
New listings is the cumulative quantity of listings posted for the month. Active listings is the quantity of active listings on the last day of the month.Listings over time
Listing metrics tend to be seasonally cyclical making month-over-month reports misleading as indicators of market shifts. The below chart shows each month's active and new listings over the past decade. The current month is highlighted on each line to illustrate how today's data compares to the past 10 years of data for the same month.
HPI benchmark prices
HPI Index establishes "Benchmark Prices" for a typical home in each major housing category. Benchmark Prices, as a relative metric, tend to be a more accurate indicator of market direction and velocity as they are not subject to the composition of home types being sold, like average home prices.For more information on the residential development land market in the Fraser Valley or to sign up for my monthly newsletter, please contact:
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Data sourced from Fraser Valley Real Estate Board