The coronavirus has transformed the way people make purchase decisions, with many shifting their priorities to achieving security and maintaining health. Because of this, the real estate market rebounded quickly from the pandemic. Low mortgage rates and interest, the increased emphasis on security, and the growing number of people working at home have all led to higher housing demand.
Given the changes caused by the pandemic, real estate has exploded into a massive seller’s market. The Fraser Valley Real Estate Board (FVREB) recently noted that April 2021 marks the eighth consecutive month for record-breaking sales, registering a 338% increase from April 2020. The number of sales processed also reached 3,016, beating the previous record of 2,969 held back in April 2016.
Without a doubt, real estate continues to be competitive in Fraser Valley, but recent trends have suggested potential changes to come. Check out some of the key insights from the Board’s April 2021 Statistics Package to learn more about where the market stands today.
April 2021 FVREB Statistics
As a whole, April 2021 showed consistent growth from previous months, building off of the influx of new listings from the previous month. Each property type registered an increase in its benchmark price when compared to April 2020, which is summarized below:
- Single Family Detached Homes: $1,293,300 (30.3% increase)
- Townhouses: $652,400 (18.0% increase)
- Apartments: $478,700 (9.3%)
Consistent to previous months, sales were primarily concentrated in the City of Surrey. Single family detached homes, townhouses, and apartments recorded 601, 470, and 332 sales, respectively, in the said city. Among the three housing types, townhouses were the quickest to sell, averaging 10 days in the market. On the other hand, apartments took the longest to sell at an average of 22 days.
Market Responds to the Increase in Housing Supply
A notable insight highlighted by FVREB is the effect of steady increase in housing supply, which has led to easing prices and a better demand-supply balance in the market. The Board reported record levels of new inventory in the past two months, with 5,087 and 5,018 new listings registered in March and April 2021, respectively. It brought the total active inventory in April 2021 to 6,030, which was the highest the market has seen in six months.
FVREB President Larry Anderson weighed in on the matter and stated that the increase in supply is pointing to a change in the pace of real estate. According to him, the decrease in multiple offers and longer waiting times of high-priced homes are all positive signs that the market is responding to the massive increase in inventory levels.
Competition Remains a Year After the Pandemic
Back in April 2020, the Fraser Valley real estate market was significantly limited and restricted by quarantines and lockdowns. While the first few months of the pandemic may have been tricky to navigate, the massive turnaround has led to major record-breaking numbers for consecutive months now.
One year later, in April 2021, market competition remains intense. The increased supply may have calmed down prices, but consistent housing demand has sustained success in real estate. Even so, market conditions can change at any time, so the practices and prices that work today may not necessarily work tomorrow.
According to Baldev Gill, CEO of FVREB, it is critical for sellers to work with professional agents and realtors to know the right prices for active listings. Having a good grasp of how the market operates is key to stay competitive and realistic at the same time.
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