Langley Real Estate Market Update: September 2022 So Much Drama

Why is the Langley Real Estate market so dramatic?

I hope you’re enjoying our extra late summer! Our back-to-school life has been wild with all the holidays! The real estate market has been very dramatic this summer, but September showed signs that we might be finding our footing.

“Faced with a dramatic shift in the cost of borrowing, housing market activity is likely to fall well below normal over the next year.”
– BC Real Estate Association
In the Fraser Valley as a whole, the total sales volume last month was 801, which is a 53% decrease from the record volume of September last year and an 11% decrease from the previous month. 
Not all markets are the same. For example, the Langley detached market has a total sale ratio of 24% (2.4 in 10 homes sold), but properties under $1,250,000 have a sale ratio of 69% (31/45 sold)! These statistics show that pockets of the market are still very competitive with hungry buyers and may act as a backstop for our sale prices as prices balance out. In Langley, detached real estate saw a modest increase in price as the sale volume picked up and the inventory started shrinking. 
langley real estate featuring langley condos and townhomes
The median sale price for the Fraser Valley was $965,000, which is a 1% decrease from September last year but flat from August! There are currently 4435 active listings in the Fraser Valley, a 66% increase from this time last year and 2% less than the previous month. Sellers are understandably taking their time adjusting to the new prices, and we expect volume to increase as prices are adjusted. 
In other news! U.N. has called on FED and other central banks to halt interest rate increases because of the risk to the broader global economy. Our next interest rate announcement is slated for October 26, and most analysts are expecting the Bank of Canada to follow the Bank of England with another increase of 0.5% 

Something is going to have to give; our inventory is still historically low, and a large portion of the active listings are on the high end, out of reach for most buyers. If we continue to raise interest rates, we will force developers to delay or cancel new housing starts, and the lack of new homes will ultimately increase pressure on an already franticly aggressive rental market. Interest rate increases have been necessary to combat inflation, but the application of the cure could be worse than the disease.

If you’re considering entering this market as either a Buyer or Seller, you need to prepare yourself with an intelligent plan that limits your risk. Our team understands that each situation is different, so we tailor our real estate strategy to you.

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Mike Cook
Mike Cook
A blue-collar worker in a white-collar world, I spent most of my twenties building high-end homes, leading major renovations, restoring, and finding/fixing deficiencies in new construction. I am happy to use this experience to point out the potential of a home. I pride myself on always looking for a way of improving the experience for my clients, agents on my team, and my community through leadership, technology, and charity.

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