🕵️‍♂️ Where’s the Opportunity?

Fraser Valley Real Estate – May 2025 Breakdown

Just like in the pages of Where’s Waldo?, opportunity in today’s real estate market is right in front of us — just hidden in the chaos.

You flip the page, stare at the crowd, and think, “There’s nothing here”… until suddenly, boom — there he is.
That’s exactly what the Fraser Valley market feels like right now.

Let’s cut through the noise and show you where the smart money is moving.

🎯 First-Time Buyers: You're Not Selling — That’s Power

If you're entering the market for the first time, you're not weighed down by selling in a slower climate.

• Inventory is up 34% from last year → you’ve got choice

• Detached prices are down, and sellers are flexible

• You qualify for First-Time Buyer Programs (PTT break, 5% down, etc.)

👉 Opportunity: You’ve got timing, leverage, and options. That’s rare — use it.

🏡 Upsizers: Townhouses Are Holding. Detached Homes Are Discounted.

The market is rewarding the move-up buyer:

• Townhomes: Barely moved (down just 0.03% month-over-month)

• Detached Homes: Down 1.6% this month, and 6.2% year-over-year

• High inventory = more selection, less competition

👉 Opportunity: Sell your townhouse while values are steady, and buy a house while they’re on sale.

💸 Investors: Soft Prices + Strong Rental Demand = Prime Time

The headlines say slowdown — but landlords see strength:

• Rental demand is up (buyers waiting on the sidelines)

• Detached + apartment prices are down

• Find suited homes or light reno properties → cash flow, hold, gain

👉 Opportunity: Use today's pricing + tomorrow’s rental income = long-term win.

🧰 Value-Add Buyers: Ugly Ducklings = Hidden Gold

This market is full of overlooked potential:

• Dated listings = stale listings = negotiation opportunities

• Cosmetic updates yield huge upside in a soft market

• Pair with staging and smart prep (like Ready Set Sell) and you've got a flip or equity-builder

👉 Opportunity: Find the stuff others scroll past. Fix it. Build wealth.

🔍 Final Word: Waldo Was Always There — So Is Opportunity

The people who win in this market are the ones who know what to look for.

• It’s not always shiny.

• It’s not always obvious.

• But it’s always there — if you’ve got the right guide.

📲 Ready to find yours? Let’s talk.

📊 May 2025 Real Estate Market Update: Surrey & Fraser Valley

The Fraser Valley housing market showed signs of renewed activity in May 2025, offering both opportunities and challenges for buyers and sellers in Surrey and surrounding areas.

🏡 Market Overview

After a subdued April, May witnessed a modest uptick in home sales across the Fraser Valley. The Fraser Valley Real Estate Board (FVREB) reported 1,183 sales on its Multiple Listing Service® (MLS®) in May, marking a 13% increase from April. However, this figure still represents a 22% decrease compared to May 2024 and is 36% below the 10-year seasonal average. bchb.ca+9vancouverhomesearch.com+9fvreb.bc.ca+9

In Surrey specifically, the market reflected similar trends. According to Houseful.ca, the median list price of homes in Surrey was $1,285,050 in May, up 1.74% from April. The average number of days a home spent on the market increased to 43 days, up from 38 days in April. honestdoor.com+1en.wikipedia.org+1houseful.cavancouverhomesearch.com+1houseful.ca+1

📈 Inventory and Pricing

Inventory levels continued to rise, providing buyers with more options. The FVREB noted that active listings in the Fraser Valley reached 10,626 in May, a 6% increase from April and a significant 34% rise compared to May 2024. This surge in listings is 54% above the 10-year seasonal average. agentmarket.cafvreb.bc.ca+9vancouverhomesearch.com+9members.gvrealtors.ca+9

Benchmark prices experienced slight declines across various property types:archibaldrealestate.ca+1agentmarket.ca+1

• Single-Family Detached Homes: $1,481,900 (down 1.6% from April and 3.2% from May 2024)

• Townhomes: $832,800 (down 0.03% from April and 2.5% from May 2024)

• Apartments: $532,700 (down 0.9% from April and 4.0% from May 2024)vancouverhomesearch.com+1vancouverhomesearch.com+1

📊 Market Dynamics

The sales-to-active listings ratio in the Fraser Valley stood at 11% in May, indicating a buyer's market (a balanced market ranges between 12% and 20%). This suggests that while buyers have more choices, sellers may need to adjust pricing expectations to attract offers. gvrealtors.ca+5vancouverhomesearch.com+5storeys.com+5members.gvrealtors.ca+3vancouverhomesearch.com+3vancouverhomesearch.com+3

In Surrey, the housing market showed a slight increase in median list prices, but homes are taking longer to sell, reflecting cautious buyer sentiment. The median days on market increased by 13.16% month-over-month. houseful.ca

🔍 Looking Ahead

With inventory levels at a decade high and sales activity still below historical averages, the market continues to favor buyers. However, the modest increase in sales from April to May could indicate the beginning of a market rebound. Sellers should remain flexible with pricing, while buyers can take advantage of the increased selection and negotiating power.gvrealtors.ca+6agentmarket.ca+6bcprimerealty.com+6

For personalized advice or more detailed information on the Surrey real estate market, feel free to reach out.

In recent developments, the Canadian economy has demonstrated resilience, with a surprising annualized growth rate of 2.6% in the fourth quarter of 2024. This growth, surpassing expectations, was driven by robust consumer spending, increased business investments, and a surge in exports. Notably, household spending, which constitutes over half of the GDP, rose by 1.4%, while residential construction experienced a 3.9% uptick. Business investments also saw a 0.7% increase, particularly in machinery and equipment.

Reuters

However, this positive trajectory faces potential challenges due to looming trade tensions. U.S. President Donald Trump has proposed imposing a 25% tariff on a wide range of Canadian imports, a move that could significantly impact the Canadian economy. In response, the Bank of Canada (BoC) is carefully evaluating its monetary policy approach.

Potential Economic Impacts of U.S. Tariffs

The introduction of substantial U.S. tariffs would likely render Canadian goods more expensive in the American market, leading to a decline in demand. Estimates suggest that exports could decrease by approximately 8.5% within a year of the tariffs' implementation. This downturn would not only affect Canadian businesses but also result in job losses and reduced household incomes. Additionally, retaliatory tariffs from Canada could elevate consumer prices domestically, further straining household budgets.

Bank of Canada

Monetary Policy Considerations

Traditionally, central banks might lower interest rates to stimulate economic activity during downturns. However, the BoC faces a complex situation: while rate cuts could support growth, they might also intensify inflationary pressures arising from increased import costs due to tariffs. Michael Davenport, Senior Canada Economist at Oxford Economics, suggests that in this scenario, the BoC might opt to maintain the policy rate at 2.75% after a potential cut in March, balancing the need to support the economy with the imperative to control inflation.

Yahoo Finance

Broader Economic Context

The Canadian economy's recent performance has been commendable, with growth surpassing expectations. However, the potential imposition of U.S. tariffs introduces significant uncertainty. Bank of Canada Governor Tiff Macklem has cautioned that a prolonged trade conflict could permanently reduce Canada's GDP, underscoring the severe consequences such tariffs could have on the nation's economic trajectory.

The Wall Street Journal

Conclusion

The prospect of U.S. tariffs presents a multifaceted challenge for the Bank of Canada. Balancing the need to support economic growth while managing inflation requires careful consideration and may lead to unconventional policy decisions. As the situation evolves, the BoC's approach will be pivotal in steering Canada through these economic uncertainties.

The Fraser Valley real estate market kicked off 2025 with a significant surge in inventory, creating promising opportunities for buyers. As Fraser Valley specialists based in White Rock, Collab Realty Group is committed to keeping you informed about the latest market trends and what they mean for you.

Significant Increase in New Listings

January saw a remarkable 167% increase in newly listed homes compared to December, with 3,432 properties entering the market. This influx pushed total active listings to 7,251, marking a 10-year seasonal high. Inventory levels are now 54% above the decade-long average, offering buyers more choices than in previous years.

Sales Activity and Market Dynamics

Despite the rise in inventory, sales activity slowed down. A total of 818 properties were sold in January, an 18% decrease from December. The sales-to-active listings ratio settled at 11%, indicating a buyer's market—especially in the detached homes segment. Generally, a balanced market falls within the 12% to 20% range.

Property Prices Remain Stable

Benchmark prices remained steady across various property types in January:

• Single-Family Detached Homes: $1,482,400 (+0.1% from December, +0.6% YoY)

• Townhomes: $826,000 (-0.2% from December and YoY)

• Apartments: $534,600 (+0.1% from December, -1.2% YoY)

This stability indicates that despite increased inventory and fewer sales, home values are holding firm, providing confidence for both buyers and sellers.

Extended Time on Market

Properties are taking longer to sell compared to previous months:

• Single-Family Detached Homes: 52 days

• Townhomes: 38 days

• Condos: 42 days

This gives buyers more time to make informed decisions while sellers must be strategic in pricing and marketing their homes effectively.

Insights from the Fraser Valley Real Estate Board

Baldev Gill, CEO of the Fraser Valley Real Estate Board, noted, "The market appears to be in a holding pattern at the moment. There is no doubt that economic uncertainty is playing a role, especially the spectre of a trade war, which could lead to even more rate cuts by the Bank of Canada."

This combination of factors may create unique opportunities for buyers looking to enter the market before conditions shift again.

Opportunities in White Rock

For those specifically interested in the White Rock area, the market trends align with the broader Fraser Valley dynamics. With increased inventory and stable pricing, buyers can explore various options in this sought-after seaside community.

Navigating the Current Market

Given the evolving conditions, it’s crucial for both buyers and sellers to stay informed and act strategically. At Collab Realty Group, our experienced team is ready to provide personalized guidance and help you navigate the Fraser Valley real estate landscape effectively.

All statistical data is sourced from the Fraser Valley Real Estate Board's January 2025 Statistics Package.

In February 2025, President Donald Trump announced sweeping tariffs on Canadian imports, sending shockwaves through the economy. These new tariffs include a 25% levy on most Canadian goods, a 10% tariff on energy imports, and a substantial 100% tariff on automobiles. Originally set to take effect immediately, the implementation has been postponed until March, offering a brief window for industries to brace for impact.

While these measures are meant to prioritize American interests, they pose serious challenges for Canada’s economy—particularly for industries closely tied to trade with the U.S. One sector that could experience ripple effects is real estate, as rising costs and economic uncertainty influence both buyers and sellers.

How Will the Tariffs Affect Canada?

The introduction of these tariffs is expected to have widespread economic implications. Here are some of the key areas that may feel the impact:

1. Inflationary Pressures and Interest Rate Adjustments

Higher tariffs mean increased costs for goods and services. When businesses pass these costs onto consumers, inflation is likely to rise. To counteract these inflationary pressures, the Bank of Canada may be forced to introduce emergency interest rate cuts to stabilize the economy. While lower rates can make borrowing more affordable, economic uncertainty may temper the real estate market’s response.

2. Construction Costs and Housing Affordability

With tariffs affecting raw materials like steel and aluminum, construction costs are expected to rise, making new builds more expensive. For buyers, this means higher home prices, and for developers, tighter profit margins. The affordability crisis, which has been a major issue in Canadian real estate, could be further exacerbated.

3. Supply Chain Disruptions and Employment Concerns

Many Canadian industries rely on materials and products from the U.S. Supply chain disruptions due to tariffs could lead to job losses, particularly in manufacturing, logistics, and the automotive sector. If employment becomes unstable, consumer confidence may take a hit, leading to a slowdown in home purchases and investments.

What Does This Mean for the Real Estate Market?

The Fraser Valley real estate market has already shown signs of softening. January 2025 marked the tenth consecutive month of decline in the Housing Price Index (HPI) for detached and attached properties in the region. Additionally, sales volumes decreased, with 730 sales in January compared to 864 in December 2024. The current economic uncertainty caused by these tariffs could accelerate this trend.

Real estate is deeply tied to economic confidence. When uncertainty looms, buyers hesitate, sellers become cautious, and market activity slows. If interest rates are cut in response to economic turbulence, we may see an uptick in buyer activity, but only if consumer confidence remains steady.

Navigating an Uncertain Market

If you’re a homeowner, investor, or potential buyer, it’s crucial to stay informed and plan accordingly. Here are some key takeaways:

• Monitor Interest Rates: If rates drop, it could create an opportunity for homebuyers to lock in favorable mortgage terms.

• Consider Market Timing: If you’re planning to sell, understanding when to list your property can be crucial in a fluctuating market.

• Stay Updated on Policy Changes: Economic policies and trade negotiations could shift rapidly, so keeping up with the latest developments is essential.

• Consult Professionals: Working with an experienced real estate agent and financial advisor can help you make the best decisions in uncertain times.

Final Thoughts

While the full impact of Trump’s tariffs on Canada remains to be seen, there’s no doubt they will create challenges for the economy and real estate market. As we navigate this evolving situation, being proactive and well-informed will be key to making sound financial and real estate decisions.

If you’re considering buying or selling in this uncertain climate, my team at Collab Realty Group is here to help. We’ll provide expert guidance to help you make confident choices in a shifting market. Reach out today to discuss your real estate goals and how we can navigate these changes together.

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