FRASER VALLEY

Fraser Valley composite benchmark price surpasses $1-million; new listings seen to be moderating price surge.

The Fraser Valley residential market is continuing to set new records in monthly sales volumes. Last month sales totalling 3,016 set a new record for April transactions, a 338% increase over the same month one year ago. While this year April sales showed a slight decrease of 9.0% from the preceding month of March, it is important to note that March sales set a record high, surpassing the previous high five years ago. By any measure, the Valley continues at present as a seller’s market but with some indications that the region’s rapidly rising prices over recent months may be starting to slow. While spring is normally a higher sales season, the April dip could be a sign that soaring prices may have reached a limit for buyers. In addition, new listings are continuing to replenish the inventory of available homes, providing a much-needed moderating effect on the high demand that has been pushing prices upwards. April’s new listings reached 5.018, an increase of 254% over April 2020, and a very slight decrease of 1.0% from the preceding month of March this year. However, as with the record sales volume in March, new listings were also at an all time high for the month. April’s intake brought the total supply of available homes to 6.030, 20% higher than at the close of March, and to highest level in six months. Nonetheless, this current ample supply may see some depletion during May as Valley buyers may want to close purchases before a possible rise in the mortgage rate stress test on June 1. A rate increase is being considered by the federal government to safeguard against mortgage defaults in the event of higher interests down road. The current low interest regime has been the underlying cause of the current sales boom, and the rise in prices associated with the high demand.

The composite benchmark price for a residential property in the Fraser Valley at the end of April was $1,020,700, a 4.0% increase from the preceding month. This is the first time the composite benchmark price for a Valley home has gone above the $1-million mark. However, Valley homes are still on average about 32,000 less than a comparable Metro Vancouver property. You may look at the comparison of benchmark prices I have selected for you below in the geographical areas closest to overall benchmark price for each property type. This selection is meant simply as a guide for your shopping or listing considerations. Remember that benchmarks are average prices for comparable properties. If you are a interesting in a more detailed analysis of a particular neighbourhood, please let me know and I will be happy to provide you with additional information. If you are thinking of listing, I will also be able to advise you on the best range for your listing price in this dynamic market. At present, single family detached homes are selling in the Fraser Valley on average within 13 days on the market; townhouses within 10 days; and condominiums within 22 days. Please feel free to contact me. I am always happy to help my clients with their real estate needs.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of April was $1,293,300 an increase of 4.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,683,900 and Mission at $902,900. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,288,100, an increase of 6.2% from the preceding month; Langley at $1,345,100; an increase of 5.1% from the preceding month; and Cloverdale at $1,371,300, an increase of 2.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,288,100, an increase of 6.2% from the preceding month; Langley at $1,145,100, an increase of 5.1% from the preceding month; and Cloverdale at $1,371,300, an increase of 2.5s% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of April was $652,400, an increase of 4.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $792,100 and Mission at $532,600. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $655,500, an increase of 6.8% from the preceding month; Langley at $661,500, an increase of 4.1% from the preceding month; and Surrey at $669,600, an increase of 4.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $618,800, an increase of 2.9% from the preceding month; Abbotsford at $540,700, an increase of 5.0% from the preceding month; and Mission at $532,600, an increase of 5.9% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of April was $478,700, an increase of 2.9% from the preceding month. The extremities of this average were South Surrey/White Rock at $553,700 and Abbotsford at $362,700. Only two municipalities were on the higher side of the average: Cloverdale at $521,700, an increase of 3.4% from the preceding month; and South Surrey/White Rock at $553,700, an increase of 3.7 from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $452,800, an increase of 2.2% from the preceding month; North Surrey at $452,800, an increase of 2.2% from the preceding month; and Langley at $447,200, an increase of 3.0% from the preceding month. 

 

I can help

 

I am active in many areas of real estate so please don’t hesitate to ask me if there are other ways in which I can help you.  My experience in banking and finance will assist you in your mortgage planning. Or you if are already settled in your home and are thinking of renovations, I can recommend reputable tradespeople who provide quality work at reasonable rates. It gives me great pleasure to help my clients in any way I can.