Sales remains robust; housing inventory shrinks as new listings decline

Fraser Valley sales continued robustly in August as home purchases reached a total of 2.087, an increase of 4.0% over the preceding month and 2.4% higher than one year ago. However, new listings took another dip last month, dropping 13.3% from new listings in July. This was a decrease of over 36% for the same period last year. With the 2.107 new listings in August, the Fraser Valley’s total active inventory at the end of the month was 4.077, 16.8 per cent lower than July, and close to 45% lower than the same period one year ago. Predictably, the high demand and lower supply is being seen in the rate of price rises. The combined residential benchmark price across all properties at the end of August was $1.066,800. This was an increase of 1.2% over the preceding month. Notably, this monthly increase was a full percentage point higher than the increase for the month before it. While the country’s low mortgage rate continues to fuel demand, housing affordability will continue to be exacerbated. Demand for Valley homes will continue to be high owing to the region’s livability, but housing development must increase to keep rising prices in check. There will need to be public policy solution soon, but for the present I would encourage home seekers to follow month-over-month fluctuations that can sometimes result in price declines in some areas, depending on relative sales activity. Since the Valley’s composite benchmark price surpassed the $1-million mark several months ago, the gap between the Fraser Valley benchmark and the Metro Vancouver benchmark has been consistently closing. There is now a mere $10,000 difference between the two markets, and many buyers are still seeking to purchase in less densely populated areas due to the pandemic.

In my selection of benchmark prices for the three property types below, I show the monthly price changes for homes in different areas clustered around the overall benchmark for the Fraser Valley. By examining these comparisons, you will have a guide to where you may find a home that fits your budget and desired living area. It is important to remember, however, that benchmarks are averages, for which I include the extremities to better represent the range of prices. This month you will see that increases in each property type from the preceding month are typically highest for single family detached homes, and for which the demand remains strong in the Valley.  I would encourage home buyers not to sit on the sidelines if you are eager to make a purchase as you don’t want to be priced out of your budget while supply continues to shrink. And if you are considering listing your home for sale, please feel call me for assistance in determining your optimal asking price. I keep a close eye on market activity and can advise you on selling in this high demand environment. Last month, single family detached homes sold on average within 28 days; townhouses sold within 19 days; and condominiums were on the market for an average of 29 days. Please don’t hesitate to let me know how I can help for whatever your residential needs may be.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of August was $1,335,800, an increase of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,713,800 and Mission at $955,700. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $1,381,800, an increase of 0.4% from the preceding month; Cloverdale at $1,403,500, an increase of 2.0% from the preceding month; and Surrey at $1,405,400, an increase of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,319,200, an increase of 0.5% from the preceding month; North Delta at $1,208,700, an increase of 1.4% from the preceding month; and Abbotsford at $1,152,700, an increase of 1.5% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of August was $697,500, an increase of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $822,700 and Abbotsford at $598,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $707,800, an increase of 0.9% from the preceding month; Langley at $723,100, an increase of 2.4% from the preceding month; and Cloverdale at $731,100, a decrease of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $680,400, an increase of 1.1% from the preceding month; North Surrey at $668,900, an increase of 0.4% from the preceding month; and Mission at $604,800, an increase of 1.1% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of August was $498,800 an increase of 1.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $575,200 and Abbotsford at $386,000. Only two municipalities were on the higher side of the average: Cloverdale at $530,800, an increase of 0.3% from the preceding month; and South Surrey/White Rock at $575,200, an increase of 2.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $486,700, an increase of 0.2% from the preceding month; Langley at $473,700, an increase of 0.3% from the preceding month; and North Surrey at $465,500, an increase of 1.4% from the preceding month. 

 

How can I help?

I am always eager to help my clients in any way I can. Please don’t forget I also bring strong banking and finance experience to help with your budget and mortgage planning.  And if you are thinking about renovations on your existing home, I can offer good advice on what your investment will return to your future home value. I can also recommend reputable and reliable tradespeople who provide quality work at reasonable rates. Please let me know if I can assist in any way at all. It’s a pleasure for me to help you