'Like going to a buffet with no one else in line': Housing sales stall in Metro Vancouver, Fraser Valley

New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.

“It’s like going to a buffet with no one else in line,” said Jeff Chada, Chair of the Fraser Valley Real Estate Board.

Chada says housing listings are way up but demand has stalled.

“Inventory has increased around 5 per cent since last month, But the very big number is, it’s about 39 per cent from this time last year,” Chada told CTV News, describing the market in the region that includes Surrey, Langley, Abbotsford and White Rock.

According to a new report from Greater Vancouver Realtors, listings have also increased in that region by more than 30 per cent since September 2023, with sales trending 25 per cent below the 10-year average.

One analyst says this was unexpected with interest rates coming down in recent months.

“Typically, you would expect to see an increase in buyer appetite as the mortgage rates come down but we’re still not seeing it quite yet this year,” said Andrew Lis, director of economics with Greater Vancouver Realtors.

Lis believes B.C. politics could be playing a role in the market slowdown. The NDP, BC Conservatives and BC Greens have unveiled plans for their respective housing policies.

“This election has a lot of housing policy focused around it,” said Lis. “It’s very possible some buyers are waiting on the sidelines to see what happens with the political situation going forward.”

One Vancouver Realtor tells CTV News he doesn’t foresee a buying surge anytime soon.

“It’s just not affordable,” said Ryan Dash, with EXP Realty. “It’s very difficult for new families to try and get a home. It’s very difficult for Realtors in the industry who maybe haven’t seen these market fluctuations before. It’s very difficult to navigate this kind of thing.”

Dash tells CTV News while bidding wars were the norm during the pandemic, some of his buyers were able to purchase homes below asking price last month.

“We’ve saved anywhere from five to 10 per cent of the asking price of most homes that are available on the market,” said Dash.

He adds, however, that many homeowners are willing to wait it out before accepting low-bid offers.

“We’re not going to see any kind of panic selling,” said Dash. “Largely, that’s because 40 to 50 per cent of sellers throughout the GVRD don’t even have a mortgage on their property.”

He adds that with more federal rate cuts expected down the road, the market could remain in a stalemate for the near future.