Langley Real Estate Market Update: Detailed Analysis & Predictions for August 2023
Welcome to the August 2023 Langley Real Estate Report & Trends, your up-to-date source for all the latest information on the Langley, BC real estate market. In this report, we will delve into the key statistics and trends that defined the Langley market in July 2023, providing valuable insights for buyers, sellers, and homeowners alike.
While this blog post captures a snapshot of the market for this month, our 'Langley Market Update' page offers continually updated insights. Be sure to check it regularly for the most up-to-date information on the Langley real estate market.
Langley Housing Market Statistics for All Property Types
For July 2023
Snapshot: Key Real Estate Statistics in Langley, BC
The Langley housing market remained active in July 2023, despite a slight dip in the average sold price from the previous month. Here's a closer look at the key indicators:
Average Sold Price: The average sold price in July 2023 saw a decrease of approximately 7.55% compared to June 2023. However, compared to the last quarter and the same period last year, there was an increase of approximately 4.06% and 5.93% respectively, which indicates a generally positive trend.
Sales Numbers: In July 2023, a total of 298 properties were sold. While this indicates a monthly decrease of 34.36% compared to June 2023, the quarterly and annual changes show a decrease of 12.09% and an increase of 28.45% respectively, showing a mixed trend.
Listing Numbers: The number of new listings in July 2023 was 568. This was a decrease from June 2023 when there were 633 new listings, but a notable increase from July 2022 when there were 490 new listings.
Benchmark Prices: The benchmark prices varied across different property types. Detached houses had a benchmark price of $1,630,800, townhouses were at $848,300, and apartments were priced at $612,900 on average.
Average Days On Market (DOM): Properties in Langley remained on the market for an average of 17 days before being sold in July 2023. This was the same as the average in June 2023, and an improvement from July 2022 when the average was 21 days.
Active Listings: The number of active listings in July 2023 was 937. This represents an increase from June 2023 when there were 886 active listings, but a decrease from July 2022 when there were 1,252 active listings.
Decoding the Data: What Does Langley's Market Mean for You?
Langley's real estate market in July 2023 experienced a significant shift, primarily driven by rising interest rates and the typical summer sales cycle. Here are some key insights:
Interest rates have reached their highest levels in over two decades, and with inflation remaining elevated, both buyers and sellers are taking a step back to reassess their objectives. This led to the largest month-over-month drop in the number of sales in Langley since April 2022.
While the market continues to be resilient, it's important to understand that rising prices can have a counterintuitive impact. As prices increase, affordability diminishes, thereby reducing the pool of potential buyers. This is particularly noteworthy for first-time homebuyers, who may find it challenging to enter the market, especially when considering a starter apartment.
Sellers should remain patient and realistic in their pricing strategies. With buyers reevaluating their plans in the face of rising interest rates, successful transactions may require additional time and negotiation.
For buyers, it's crucial to understand the long-term implications of current market conditions. Despite higher interest rates, the market presents opportunities, particularly for those who can afford to take a long-term view. Buyers should consider their financial situation and goals carefully and work closely with their REALTOR® to navigate this complex market landscape.
Looking Ahead: Langley Real Estate Forecast
Given the current market trends and our expert analysis, we project the following developments for the Langley real estate market in the coming months:
Provincial Housing Targets: The Province's upcoming release of major market housing targets is expected to have significant implications for the real estate market. The Housing Supply Act, passed in the fall of 2022, grants the Province the authority to set housing targets for municipalities with the highest demand and projected growth. As a part of this initiative, municipalities like Delta and Abbotsford in the Fraser Valley, along with Vancouver and Victoria, will be required to update zoning bylaws and streamline local development approval processes to accelerate housing development. If successful, this increase in the supply of new homes could impact markets throughout the Fraser Valley, including Langley.
Market Activity: We anticipate a continued slowdown in market activity as buyers and sellers pause their decision-making in response to rising interest rates and inflation. This trend is likely to persist until the fall cycle, when activity typically picks up.
Narrowing Price Gap: Over the past year, the MLS® HPI Price gap between townhomes and apartments has narrowed by more than $61,000. This increased affordability may encourage apartment owners to consider upgrading to townhomes. As such, we could see a surge in this buyer segment entering the market in the fall.
Despite the current economic uncertainties and the summer slowdown, the Langley real estate market continues to present opportunities for both buyers and sellers. The potential increase in housing supply due to new provincial housing targets could introduce new dynamics to the market. As always, staying informed and working with experienced real estate professionals will be key to successfully navigating this complex market landscape.
Sales-to-Active Ratio: A Measure of Market Type
The Sales-to-Active Ratio is a vital metric that offers critical insights into the Langley real estate market, providing a snapshot of market type based on supply and demand dynamics. This ratio helps guide strategies and set expectations for both buyers and sellers. Let's delve into the Sales-to-Active Ratio for July 2023 and compare it with previous periods:
July 2023: The Sales-to-Active Ratio in Langley's real estate market for July 2023 stood at 31.8%. Although this shows a decrease from June 2023, it still indicates a Seller's Market, with high demand and limited supply favouring sellers.
June 2023: In June 2023, the Sales-to-Active Ratio was notably higher at 51.2%. This represented a strong Seller's Market with robust demand and limited inventory.
July 2022: Looking back a year to July 2022, the Sales-to-Active Ratio was only 18.5%. The substantial increase over the course of a year underscores a significant shift towards a seller-dominated market.
These statistics underline the continued strength of the Langley real estate market, despite a slight month-over-month decrease in the Sales-to-Active Ratio. With the ratio remaining above 20% for several months, Langley continues to be in Seller's Market territory.
Comprehension of this key indicator allows buyers and sellers to set suitable expectations and develop effective strategies when navigating the Langley housing market.
Ready to Make Your Move in Langley's Real Estate Market?
Navigating through the dynamic real estate market of Langley, BC, is indeed a thrilling expedition filled with opportunities, challenges, and crucial choices. But rest assured, you're not alone on this voyage.
At Thorne Maisey Bongers Real Estate Group, we go beyond the traditional role of REALTORS®. We serve as your reliable guides, your steadfast partners, and your advocates. Leveraging our collective experience of over 70 years, our mission is to empower you, shed light on the path ahead, and simplify the complexities of the real estate market for you.
Are you ready to delve into the market? Explore the wide array of houses, townhomes and condos for sale in Langley. Each property unfolds a unique story, offering a potential home that's ready to house your dreams and aspirations.
Considering selling your home? Allow us to provide you with a complimentary home evaluation. Gain an understanding of your property's value in the current market and stride confidently towards your next chapter.
Every real estate journey begins with a step. Take that step with assurance. Connect with us today, and let's work together to turn your real estate aspirations into reality.
All data © 2023 BC Northern Real Estate Board, Chilliwack and District Real Estate Board, Fraser Valley Real Estate Board, and Real Estate Board of Greater Vancouver. All rights reserved. Data deemed reliable but not guaranteed.
