FRASER VALLEY

Home sales uptick in Fraser Valley; excellent purchase opportunities.

Fraser Valley residential sales increased slightly in August, up 2.4% from the preceding month. While total sales volume continues around half of what it was a year ago, the current upward sales tick, along with an ample inventory nearing 6,000 listings, signals the return to a balanced market, with an overall sales-to-active ratio of 17%. The Fraser Valley Real Estate Board identifies a balanced market when the ratio is between 12% and 20%. Home sales have been in steady decline since spring when the Bank of Canada began its series of policy rate increases in its current inflation-fighting effort. With mortgage interest rates rising in tandem with the central bank’s rate increases, many buyers have been sidelined by the mortgage stress test which is now set at 2.0% higher than their actual mortgage interest rate. Last week the BoC announced its latest rate increase of 75 basis points, raising the policy rate to 3.25% which is expected to push commercial bank mortgage borrowing to around 4.35% for variable mortgages, while five-year fixed rate mortgages are expected to rise to around 5.0%. Along with the declining sales for several months, Fraser Valley home prices have also declined, with benchmark prices across all property types now roughly in line with prices one year ago. However, it should be remembered that the overheated market during the pandemic period was largely produced by record low interest rates during that period. The sellers’ market created during this time saw record price levels which are now returning to more historical levels. 

The combined benchmark price for residential property in the Fraser Valley at the end of August was 1,042,600, a decline of 4.5% from the preceding month. However, the current combined benchmark is still over 11% higher than one year ago, and buyers are encouraged now to look at excellent purchase opportunities in a region that promises long term value for home investment. Prospective buyers can find in the selection of comparative benchmark prices below, the month-over-month changes in the benchmarks for different areas of the Valley. This will help you to locate where you might find a property in the price range you are seeking. It is important, however, to remember that benchmarks are averages and specific properties can vary in prices significantly between the extremities of the average, which is also provided for each property type. I would therefore encourage you to examine the selection below and call me for details on any area you are interested in. I am able to provide you with up to date information on any particular listing, And if you are considering listing your property, I can develop a customised Comparative Market Analysis for your home and advise you on the optimal listing price at this time. Newly listed properties sell average quite quickly in the Fraser Valley. Last month single family detached homes sold on average within 33 days; townhouses were on the market for an average of 26 days; and condominiums sold on average within 35 days of their listing. Please feel free to  call me for any of your real estate needs. I am always happy to help my clients with any of their questions.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of August was $1,513,500, a decrease of 5.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,954,000 and Mission at $1,001,000. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,534,800, a decrease of 6.2% from the preceding month; Surrey at $1,561,000, a decrease of 4.9% from the preceding month; and Langley at $1,622,100, a decrease of 5.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,501,100, a decrease of 4.8% from the preceding month; North Delta at $1,345,700, a decrease of 4.7% from the preceding month; and Abbotsford at $1,228,500, a decrease of 6.5% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of August was $841,900, a decrease of 3.9% from the preceding month. The extremities of this average were South Surrey/White Rock at $939,300 and Mission at $704,700. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $886,100, a decrease of 5.9% from the preceding month; Langley at $888,900, a decrease of 4.0% from the preceding month; and South Surrey/White Rock at $939,300, a decrease of 2.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $832,700, a decrease of 4.9% from the preceding month; Cloverdale at $823,200, a decrease of 3.5% from the preceding month; and North Surrey  at $770,2300, a decrease of 2.2% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of August was $542,000, a decrease of 2.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $609,800 and Abbotsford at $451,800. The three municipalities closest on the higher side of the average were: Surrey at $550,600, a decrease of 3.3% from the preceding month; North Delta at $550,600, a decrease of 2.1% from the preceding month; and Cloverdale at $574,300, an increase 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 $492,900, a decrease of 1.2% from the preceding month; Mission at $475,800, an increase of 3.8% from the preceding month; and Abbotsford at $451,800, a decrease of 4.2% 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.