The Worst Real Estate Market in 25 Years? Fraser Valley Prices Are Falling Fast

This is one of the worst real estate reports I’ve seen in my entire career.And there’s really no way to sugarcoat it.The latest numbers out of the Fraser Valley Real Estate Board show a market that is:

• Slowing down
• Losing value
• And continuing to weaken across almost every category

If 2025 was already one of the slowest years on record…2026 is off to an even worse start.For homeowners and buyers in Surrey, understanding what’s actually happening right now is critical—because strategy matters more in a declining market than in a rising one.

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Sales Are Down Again — And That’s a Big Problem

Let’s start with demand.

• Sales are down ~8.5% year-over-year
• Year-to-date, sales are down nearly 16%

That’s not a small dip—that’s a major drop in activity.And when buyers step back like this, the entire market feels it.From what I’m seeing working with clients across Surrey and the Fraser Valley, hesitation is the dominant theme right now—buyers are cautious, and sellers are unsure how to react.

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The Only “Good News”: Fewer Listings

There is one bright spot—but it’s not exactly positive.👉 New listings are also decliningThis matters because:

• Fewer sellers = less supply
• Less supply can help stabilize prices

But here’s the catch:👉 Active listings are still increasingSo even though fewer homes are being listed, inventory is still piling up faster than homes are selling.In practical terms, this means sellers in Surrey are facing more competition—and buyers have more leverage than they’ve had in years.

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Prices Are Dropping Across the Board

This is where things really stand out.Across the entire Fraser Valley:👉 Prices are down ~8% year-over-yearAnd that’s across:

• Detached homes
• Townhomes
• Condos

No segment is immune.For homeowners, this is where accurate pricing becomes critical. In a shifting market like this, even small pricing mistakes can cost tens of thousands of dollars.

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Condos Are Taking a Serious Hit

The condo market is clearly struggling.

• Benchmark price dropped from ~$535,000 → ~$488,000
• That’s a meaningful decline in a short period

And in some areas, it’s even worse.In parts of Surrey:👉 Average condo prices are down nearly 20% year-over-yearThat’s a massive shift—and one of the biggest reasons condo sellers need a very specific strategy right now.

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Detached Homes Are Down—But Still Leading

Detached homes aren’t escaping the decline either.

• Many areas are seeing ~10% drops in benchmark pricing
• Some areas (like North Surrey) have seen even larger declines

However:👉 Detached homes are still the most resilient asset classThey continue to attract the strongest buyer demand, especially for families moving within Surrey and the Fraser Valley.

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Townhomes: The Most Balanced Segment

Townhomes are sitting in the middle:

• Down roughly 6–8% in many areas
• Still moving in certain price points
• Particularly strong in entry-level family ranges

In fact, some well-priced townhomes in Surrey are still selling quickly—especially when positioned properly for today’s buyers.

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Surrey Breakdown: Where It’s Hurting Most

Looking deeper into Surrey:

Central Surrey

• Condo sales down significantly
• Prices declining across all property types

Cloverdale

• Detached homes down ~10%
• Strong activity in affordable townhomes

North Surrey

• Detached homes down as much as 18% (average)
• Sales activity remains weak

👉 Overall: Surrey is seeing broad-based declines, with condos under the most pressure.

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We’ve Basically Erased Pandemic Gains

Here’s the bigger picture:👉 Prices in many segments are now back to 2021 levelsThat means:

• Most of the pandemic gains are gone
• In some cases, nearly 5 years of appreciation has been wiped out

For homeowners in Surrey, this is where understanding your true current value—not past peak value—becomes essential.

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Inventory Is Rising — And That Drives Everything

Even with fewer new listings:👉 Active listings are climbingMore inventory + fewer buyers = downward pressure on prices.This is the single biggest factor shaping today’s market.

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This Is a Buyer’s Market — No Question

By almost every metric:👉 We are firmly in a buyer’s market

• Roughly 1 in 10 listings is selling
• Months of inventory is well above balanced levels

For sellers, this creates a very clear reality:👉 You must stand out to sell.

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What Sellers in Surrey Need to Understand

In a market like this:

• Pricing is everything
• Presentation matters more than ever
• Timing and strategy can make or break your result

The homes that are selling right now are not the “average” listings—they are the ones that are positioned correctly from day one.This is where experience in the Surrey market really matters, because small adjustments in pricing, marketing, and positioning can dramatically impact your final sale price.

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What Buyers Should Be Watching

For buyers:

• You have more options
• You have more negotiating power
• But the best properties still sell quickly

👉 The opportunity is there—but only if you recognize value when it shows up.

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Final Thought

The Fraser Valley real estate market has clearly shifted.This is no longer a fast-moving seller’s market.It’s slower. More competitive. More strategic.And for both buyers and sellers in Surrey:👉 The difference between a good decision and a costly one has never been greater.

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Written by:
Steve Karrasch PREC
Karrasch Real Properties Team
Macdonald Realty