Sales Spike in the Fraser Valley: What You Need to Know - December 2024
Sales Spike in the Fraser Valley: What You Need to Know
The Fraser Valley real estate market is buzzing with excitement as home sales surge for the first time in five months. Following a 50 basis point interest rate cut by the Bank of Canada in October, we’ve seen a 35% sales increase from September and an incredible 37% year-over-year growth. If you’ve been waiting for the right moment to enter the market, this might just be it!
What’s Driving the Surge?
The recent rate cut was a game-changer for the market, making mortgages more affordable for buyers. And there’s more good news: another rate cut is expected after the Bank of Canada’s next meeting. Economists predict the overnight lending rate could fall to 2.75% by the end of 2025, further fueling buyer confidence and market activity.
The Bigger Picture: Canada’s Real Estate Momentum
It’s not just the Fraser Valley experiencing this upward trend. October’s home sales across Canada reached their highest levels since April 2022, with a 7.7% month-over-month increase. British Columbia led the way with a 15.3% jump in sales, marking the largest monthly gain since the summer of 2020. Ontario also saw significant growth, with an 8.9% increase.
This surge reflects a renewed buyer confidence as people return to the market, bolstered by falling mortgage rates and more properties becoming available.
Inventory Trends: A Shift in Market Dynamics
Inventory levels have dropped to just under four months nationally, the lowest in over a year. In the Fraser Valley, we’ve shifted back to a balanced market for all property types. What does this mean?
- Buyers: It’s no longer a buyer’s market, but there are still opportunities to find great deals with reasonable competition.
- Sellers: A balanced market means you’re in a stronger position to sell, especially as demand continues to grow.
What’s Next for 2025?
With the expectation of further rate cuts and continued buyer interest, the 2025 real estate market is shaping up to be significantly more active. This could lead to increased competition among buyers, so acting sooner rather than later might be the best move.
Considering Buying or Selling?
Reach out direct:
Alex Maldeis PREC
604 789 5200
alex@alexmaldeis.ca
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