Captivating many by its rich history, the Langley housing market has quickly become a hot-spot for those looking for more space to establish their first home, raise a family or retire. Let’s explore the latest real estate trends for this medium-sized city in British Columbia’s Vancouver area, just east of the city of Surrey.
Strong Spring Real Estate Market Mildly Extends into Summer
In lockstep with many other real estate markets across Canada, the Langley housing market set a blistering pace in terms of sales volume, unit sales and price growth. These record-breaking numbers have mystified economists for much of the last year. Assumed to be driven by low interest rates, additional savings caused by pandemic restrictions, and the desire for more greenspace, the frenzied housing market has shown little signs of slowing down.
Closing out the spring months with a slight surge in new listings, Fraser Valley Real Estate Board president Larry Anderson states, “In general, we’re seeing fewer multiple offers, fewer subject-free offers, and homes overpriced are starting to sit longer. These are positive signs that the market is responding to near-record levels of new inventory.” This indicates that as the summer rolls on, the Langley market may cool down to a simmer; welcome news for hopeful homebuyers who have been sitting on the sidelines due to surging property prices.
The month of May saw nearly every major real estate metric begin to decrease. Unit sales for the month saw a slight decrease compared to April, with 191 detached houses being sold, 148 townhouse sales, and 170 condos changing hands – the only type of property to see a month-over-month jump in sales when compared to April. In tandem with the slight decline in sales, new homes hitting the market also dropped. New detached home listings declined 21.3%, decreasing from 310 in April to 244 in May; townhouses being listed decreased from 250 in April to 199 in May – a 20.4% decrease; and, condos marginally decreased from 232 in April to 224 in May.
With the spring market adding homes to the market, buyers are now given more of a choice when it comes to selection – meaning, they can take back a bit of the control in the market. “Demand hasn’t changed,” Anderson said. “What’s changed is supply. In the last three months, buyers have 40 per cent more inventory to look at in the Fraser Valley and it’s allowed them to take back a little control. We’re seeing resistance to multiple offers and buyers adjusting their offers, or even waiting, because they have more selection. We’re a long way from a balanced market, but supply is helping us to head in the right direction.”
These May numbers carried into June, which saw the market slightly cool as summer began. Larry Anderson adds, “In June, we shifted from an extreme seller’s market to a strong seller’s market. Although demand for Fraser Valley homes remains very high – over 40 per cent of active listings sold in June – we’re seeing the market settle down giving buyers and sellers more room to maneuver. We’re now seeing more subject offers and for the first time in months, we’re starting to see price reductions.”
This past June, the Langley market saw sales hit 424 units, a nearly 16.7% decrease compared to May – further supporting this notion of the market beginning to shift away from a red hot sellers market. However, with active listings on the market decreasing month-over-month by almost 9.5%, the city is still has far to go before settling into more neutral territory.
What to Expect in the Langley Housing Market?
With the Langley housing market experiencing a slight dip in sales, coming off a scorching spring, prospective buyers may want to take more time to shop around before settling on a purchase. The market still has adequate listings, meaning bidding wars are anticipated to continue to decline, and this means that if you are in the market to purchase a new home, waiting until the fall be a good course of action. It is anticipated that the market will continue to slightly cool as the summer months continue, but is projected to remain firmly in sellers’ territory until early next year.