Sales slump; huge inventory; prices decline in buyer’s market

The noticeable slump in the Fraser Valley residential market this past April is being attributed to the psychological shock felt throughout all sectors of the Canadian economy, as tariffs and rumours of tariffs emanating from the USA take their toll  on consumer confidence around the world. There is no doubt that at the local level the shock has dampened the previous home buying momentum that had been steadily building since the start of this year. In purely statistical terms, the decline may appear catastrophic – sales increasing for the month of April by a meagre .06%. Looking at the Valley home sales total of 1,043, however, one is reminded it is the suddenness of the drop, not its depth, that causes the queasy feeling in one’s stomach, like a roller coaster that plunges quickly but only after it has reached an significant height. The other side of the market is its robust inventory with more than 10,000 available homes across all property types. While new listings themselves were down a slight 1.0% last month, the total supply at the end of April is the highest it’s been in 10 years. From a buyer’s perspective, the slow sales pace creates an ideal time for home shopping, and lower mortgage rates have relieved much of the financial stress seen in previous months. With the Bank of Canada’s policy rate continuing to hold at 2.75%, commercial bank mortgages are currently offering five year fixed rates as low as 3.85% and 5 year variable rates as low as 3.99%. And with the overall sales-to-active listings ratio at 10%, the prevailing buyer’s market presents an opportunity for price negotiation without the stress of upward price pressure. The Fraser Valley residential market’s price level compared with other areas in Lower Mainland is still under the $1-million threshold, making the Valley one of the best value for money investments in residential investments in the region. At the end of April, the Valley’s combined benchmark price for a residential property was $972,700, a 0.2% decline from the preceding month.   

In the section below, you will find my monthly selection of comparative prices for each property type in different areas of the Fraser Valley. The benchmarks are average prices for comparable homes. The month-over-month price changes express the normal fluctuations from the relative market activity in the area for the last month. Keep in mind that the benchmarks are averages – the extremities of each average are provided so you have an idea of the range of prices composing the average. These benchmark averages are useful as a guide for your shopping budget. If you should be interested in a particular area, please give me a call. I can supply you with the most up-to-date information on any listed property. And if you are thinking of selling you home, I can provide a Customized Market Analysis for you property and advise you on the optimal asking price in the current market conditions. For Fraser Valley listing, the average length of time for single family home to sell was 32 days; for townhouses and condominiums, it was 29 days.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of April was $1,506,600, an increase of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,910,800 and Mission at $1,062,100. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,527,500, an increase of 0.1% from the preceding month; Surrey at $1,533,200, an increase of 0.2% from the preceding month; and Langley at $1,650,700, an increase of 1.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,483,100, a decrease of 1.6% from the preceding month; North Delta at $1,404,100, an increase of 0.8% from the preceding month; Abbotsford at $1,211,800, a decrease of 1.1% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of April was $833,100, a decrease of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $954,400 and Mission at $662,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $836,100, a decrease of 0.9% from the preceding month; Cloverdale at $845,900, an increase of 0.5% from the preceding month; and Langley at $861,800, a decrease of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $758,400, an increase of 0.8% from the preceding month; Mission at $662,200, a decrease of 0.9% from the preceding month; and Abbotsford at $665,700, a decrease of 0.1% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of April was $537,800 decrease of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $619,400 and Abbotsford at $438,000. The three municipalities closest to the benchmark on the higher side of the average were Surrey at $552.600, an increase of 1.2% from the preceding month; North Delta at $563,500, an increase of 1.6% from the preceding month; and Cloverdale at $596,100, a decrease of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $474,500, a decrease of 0.1% from the preceding month; Mission at $448,300, a decrease of 1.6% from the preceding month; and Abbotsford at $438,000, a decrease of 1.3% from the preceding month.

I can help

There are many ways I can help you with your real estate transactions. Please let me know how I can help in these challenging times. You may need help in managing your home ownership plans, or in adjusting your  financial strategy for a home purchase. Perhaps you are thinking of listing your home for sale and want to understand the market to set your asking price. Let me help. I have a 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.