The Latest News From the Fraser Valley Real Estate Market

Michael Ireland Real Estate Podcast

I'm back with an update on the real estate market for the Fraser Valley.

What's been going on here in the Surrey real estate market? Recent trends in the market should give us a good idea of what we can expect moving toward the summer and beyond.
We saw 5,302 sales in May, which was a 21% increase from April. Compared to last year, it was the best month on record since last June when the market was one fire. It is also the second-best May we've seen in the history of our real estate board. That's good news.
Inventory is down by 9.5% in our market compared to this time last year. Looking at the new listings gives us an idea of how the market has replenished, and it was virtually the same as this time last year with 3,712. The average days on market—which tells us how quickly homes sell—is at 23, which is well below the historic average of 51 days. That's a sign of very strong demand here in our market.
So where is all this demand showing up? A lot of the stories we hear about high demand and multiple offers are happening in the apartment market. First-time homebuyers are creating much of this demand. Townhouses—which have become the new standard for younger families that can't afford a single-family home—also have high demand from people downsizing.

We expect the strong demand to carry through the summer and well into August.

With detached homes, inventory is doing well in price points up to about $1 million. You actually see a slowness in the market when you get into the nicer neighborhoods with homes in the $1.5 million range, or the luxury market. This segment tends to be the slowest to recover from a market correction like the one we saw last fall.
This strong demand will carry into the summer, but remember, most buyers want to buy their house before August, which is traditionally the slowest month of the year. It's when they need to transition into the school year. Given the current momentum, we actually expect strong sales activity going well into August.
There will still be opportunities in the market, however. With the vacancy rate below 1%, we've seen renters struggle to find a place. This has not only driven up rental rates, but also demand for multi-family rental units. This is where investors seemed to be focused right now.
If you or anyone you know is considering buying or selling a home in our market, give me a call or send me an email soon. I'd be glad to help!