FRASER VALLEY
New listings rise while sales slow down; Price rises forecast for next year
The Fraser Valley’s residential market appears to be preparing for a surge in pent-up demand as new listings push up inventory to the highest level in four years. At the same time buyers remain on the sidelines while the Bank of Canada continues to hold steady its policy rate at 5.0% where it has been since last July. While the Valley’s April sales transactions increased 5.0% to a total of 1,471 over March’s 1,395, the April figure was still 5.0% below the same period last year, reflecting the hesitancy of buyers in the current state of uncertainty. Over the past ten years there have been only two periods that recorded lower sales volumes. April’s new listings, however, showed a 33% increase with 3,976 homes added to the Valley’s inventory, brining the total supply of available properties to a total of 7,313 at the end of last month. This represented an 18% increase over the preceding month, although 17% below the 10-year average. The next rate announcement by the central bank is scheduled for June 5, and prospective buyers are hoping they will finally see the first rate cut by the central bank since March 2022. Since that time Canadians have seen 10 rate hikes in the Bank of Canada’s effort to bring down the country’s inflation rate. The most recent update to the Consumer Price Index rate of inflation was on April 16, showing the country’s rate now at 2.9%. This was an increase from 2.8% at the end of February this year – a worrisome uptick that some economists feel may cause the central bank to delay its first rate a while longer. However, a growing concern is that housing sector’s mortgage costs have become a major factor in pushing the inflation rate higher. The other concern for home shoppers is the price forecast released by Canada Mortgage and Housing Corporation in early April. While market cooling has produced a slowing in the rate of price increases of late, overall prices have still been inching upwards. The CMHC now forecasts that home prices across Canada could next year reach peak levels seen in early 2022, and then move to new highs by 2026. In the Fraser Valley, the combined benchmark price for a residential property at the end of April was $$1,013,600, a increase of 0.5% from the preceding month.
For your home shopping guidance, my monthly selection below shows benchmark prices in different areas of the Fraser Valley for comparable homes of each property type. Each overall benchmark has a cluster of the closest prices at the end of April on each side of the benchmark. By noting the extremities of the range of prices making up the average, you can get an idea of where you may want to focus your home search according to your budget. Remember that averages may conceal a specific price that is attractive to you. If you are interested in any neighborhood, please don’t hesitate to call me. I can provide your with the most up-to-date information with the latest new listings. And if you would like to list you home for sale, I can prepare a Customized Market Analysis for you property, and advise you on the optimal listing price in the current market conditions. Let me know what I can do for you. I love to help my clients.
Detached Homes
The benchmark price for a detached home in the Fraser Valley at the end of April was $1,517,100, an increase of 2.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,939,400 and Mission at $1.054,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,540,000, an increase of 2.1% from the preceding month; Cloverdale at $1,542,900, an increase of 2.1% from the preceding month; and Langley at $1,623,700, an increase of 2.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,505,600, an increase 2.1% from the preceding month; North Delta at $1,432,400, an increase of 1.6% from the preceding month; and Abbotsford at $1,238,200, an increase of 3.6% from the preceding month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of April was $846,900, an increase of 1.9% from the preceding month. The extremities of this average were South Surrey/White Rock at $985,600 and Abbotsford at $658,900. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $840,000, an increase of 0.4% from the preceding month; Surrey at $855,900, an increase of 1.9% from the preceding month; and Cloverdale at $871,000, an increase of 2.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $791,200 an increase of 2.8% from the preceding month; Mission at $676,500, an increase of 0.5% from the preceding month; and Abbotsford at $658,900, an increase of 1.6% from the preceding month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of April was $555,000, an increase of 1.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $635,500 and Mission at $453,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $575,900, an increase of 3.0% from the preceding month; North Delta at $591,500, an increase of 2.9% from the preceding month; and Cloverdale at $605,400, a decrease of 1.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $500,100, a decrease of 0.1% from the preceding month; Abbotsford at $455,900, a decrease of 0.3% from the preceding month; and Mission at $453,400, an increase of 2.2% from the preceding month.
I can help
These are challenging times for home buyers and homeowners. With higher mortgage interest rates, 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.