Volume and prices changing quickly in langley
I hope everyone is doing well and keeping their New Year’s resolutions! The start of the year has been interesting, to say the least, for Langley real estate with the Bank of Canada raised rates again on January 25th by another 0.25%, but it’s rumoured to pump the brakes for raises in the immediate future!
There were 550 total sales in January, down from December’s 592 and January 2022’s volume of 1176. There were 2982 active listings last month, which is a 6% increase from 2824 active listings from the previous month and a 91% increase from last year.
Many optimists predict(ed) that as the Spring market hits and the new listings appear that we would/will see a spike in volume, and that frenzy would/will give us a strong Spring market. Most neighbourhoods and property types saw inventory rise from the drought of new listings in December. Unfortunately, the sales volume hasn’t followed. Well-priced properties are still getting action and sometimes even multiple offers. Still, the buyers will reject the listing unless the property is priced sharp and presented in the best light.
Let’s take Langley attached as an example. The total sales volume (demand) has been in decline since March 2022. We saw an increase of inventory (supply) last month but the demand failed to mirror. This tells us that even with selection, Buyers are choosing to wait, or they aren’t qualifying for the property type they need or want.
“Many buyers are still waiting for a price floor to reveal itself, but transactions are being completed, with some pockets of the region more active than others.” – BC Real Estate Association.
Even with the aforementioned rise in inventory, listings are still very low historically, and I believe that’s what’s keeping the prices in check for now. I believe February and March will be rough months for property prices as Spring inventory arrives. This isn’t necessarily a bad thing…
For Buyers looking to make a jump up, the market decline has affected the property you will ultimately purchase more than the property you will sell, so you should come out net ahead compared to last year’s market. First-time home buyers who can afford the payments may be able to get a great deal in the next few months and refinance when the rates hopefully drop in the next few years. Our team recommends that our first-time home buyers get their ducks in a row now so they can be in a great position come Spring.
For the Sellers, if you’re downsizing, there is still a window of low inventory, but that window is closing. It is essential to price accurately and insist that the marketing helps your home stand out. It takes more effort to inspire offers than at any time in recent history.
There are plenty of situations that require a completely different strategy, so please connect with me! I’d love to buy you a coffee or a beer!