Insider Edge 216 - Why Record High Inventory Is Not What It Seems

Unrealistically priced homes make up 90% of the current inventory

We are currently trending at all time highs for inventory in the Fraser Valley. I am currently working with 3 buyers right now and can confirm that although some sellers are finally beginning to come to their senses, 90% of what is available on the market is stuck at yesterdays price.

If you are considering selling your home in the next little while the advice I can give you is simple. You are not competing against last years sale on your street. You are competing with this weeks price drop. With a rather substantial drop in HPI benchmark prices in a few key areas, it’s evident the market is not going to turn around into a sellers market anytime soon.

Surrey Leads The Way In Price Drops

An interesting phenomenon as well is that Surrey is seeing the most substantial price declines, while Vancouver, Abbotsford and most surrounding areas are virtually stagnant rather than seeing any real noteworthy decline in price.

Clayton Heights and West Newton lead the pack with 6-7% HPI Benchmark price declines. A drop we haven’t seen since the skyrocketing interest rates of 2022.

The Fraser Valley in general saw a 1% decline in benchmark pricing month over month.

With the lowest year to date sales since stats began recording in 2005, and inventory continuing to stack up on the market I predict the rest of the year will be more of the same. If geopolitical headwinds persist we will continue to see very slow price declines that one or two interest rate cuts won’t solve.