FRASER VALLEY

Home sales drop dramatically; upward price pressure eases

Residential sales in the Fraser Valley plunged in April by more than 35% from the previous month, a dramatic decline in the home buying spree seen throughout the pandemic period over the past two years. The cool-down in the housing market follows on the heels of the latest interest rate hike by the Bank of Canada leading to higher mortgage rates while the economy wrestles with rising consumer price inflation. Dropping below the ten-year average for the first time since 2020, Valley home sales decreased 36.6% compared with March, and were 45.7% lower than in April 2021. The decline is even more notable as Valley sales in the spring are normally on the upswing. New listings were also down during April with 3,622, a decrease of nearly 21% from the preceding month and almost 28% lower than in the same period one year ago. However, owing to its earlier surge in new listings, the Fraser Valley’s  inventory is still nearly 15% higher than two  months ago, with 5,387 available properties at the end of April. This supply offers prospective buyers a good selection of homes across each property type, and the  slower pace seen now in market activity provides a more relaxed climate for home purchases. But both buyers and sellers should note that the current drop in market activity follows historically high and frenzied demand during the low interest regime for most of the pandemic period. Demand for a Valley home remains high even as the market appears to be re-balancing to pre-pandemic levels. While an increase in new listings will be welcomed by home shoppers, and aid in keeping prices from escalating rapidly with the continuing upward price pressure, it is generally agreed that additional supply in the housing stock is required. The federal government’s recent budget provisions to fund its Rapid Housing Initiative to assist Canadian municipalities to build 6,000 new affordable housing units over the next two years provides a hopeful measure for many home shoppers who now find it difficult to qualify for mortgages with rising interest rates. At present, however, home rate of price increases appear to be slowing along with the drop in sales.

The combined benchmark price for a Fraser Valley residential property at the end of April was $1,384,000, an increase of 0.9% from the preceding month. The rate of increase last month was significantly lower than the preceding two months. In March the benchmark price rose by 4.2% and by 6.4% in February, a welcome trend for many buyers who may now find properties within their purchasing budget. In the selection of benchmark prices for different property types below, you will find a cluster of prices on the higher and lower side of the combined benchmarks for different geographical areas in Meto Vancouver at the end of April. The selected benchmarks are average prices for comparable homes in each area, and can serve as a guide for you purchase budget or planned listing. However, it is important to remember that benchmarks are average prices, and you should not rely on the benchmark alone. Among the prices composing any average, there are individual prices that I can provide to you. If you are interested in a finding a home within the range of prices shown, please don’t hesitate to call me. I am able to advise with the most up-to-date prices for any neighborhood you may be interested in. And if you are considering listing your property for sale, I can assist you setting the optimal price in the current market.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of April was $1,731,000, a decrease of 0.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $2,147,000 and Mission at $1,252,500. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $1,731,000, an increase of 0.2% from the preceding month; Langley at $1,785,000, an increase of 0.9% from the preceding month; and Surrey at $1,813,000, an increase of 1.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Abbotsford at $1,584,100 a decrease of 0.1% from the preceding month; North Delta at $1,511,200, a decrease of 0.7% from the preceding month; and Mission at $1,252,500, a decrease of 2.5% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of April was $902,500, an increase of 1.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,058,400 and Mission at $759,600. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $903,000 an increase of 0.1% from the preceding month; Langley at $914,200, an increase of 4.2% from the preceding month; and Surrey at $936,200, an increase of 1.3 from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $882,200, an increase of 1.1% from the preceding month; Abbotsford at $763,300, an increase of 4.3% from the preceding month; and Mission at $759,600, an increase of 9.7% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of April was $649,500, an increase of 1.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $713,300 and Mission at $533,300. The three municipalities on the higher side of the average: Surrey at $666,500, an increase of 1.4% from the preceding month; Cloverdale at $678,500, an increase of 1.0% from the preceding month; and South Surrey/White Rock at $713,300, an increase of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $601,500, an increase of 1.4% from the preceding month; Langley at $599,600, no change from the preceding month; and North Delta $544,000, an increase of 1.3% from the preceding month. 

 

Let me help

 

These are challenging times for many home buyers and homeowners. With Bank of Canada interest rates now rising, you may need to adjust your financial strategy for your home purchase If you need help in managing your home ownership plans, I can help. I have post-graduate education in business along with years of experience in both banking and real estate. I am happy to help in any way I can. I want my clients to achieve their goals. Please don’t hesitate to call me.