FRASER VALLEY

Prices dip as sales continue to slow; new listings up  

Home sales in the Fraser Valley dipped again during August, the second consecutive month showing a decline. However, August’s decrease of 6.9% from the preceding month was considerably less than July’s 30% month-over-month decline. While normal seasonal activity must be factored it, it is too early to identify a market cooling trend. Mortgage rates are also a likely part of hesitancy by potential buyers, although a collective sigh of relief could be heard among home shoppers with the Bank of Canada’s recent decision to refrain, at least temporarily, from another interest rate hike. Nonetheless, the central bank’s warning of possible further rate increases has created a palpable chill for many buyers, as no doubt was the Bank’s intention. Both the central bank and residential market watchers are now watching how the 10 rate hikes since March 2022 gain traction in reducing the country’s inflation rate. August also saw a drop in new listings to 2,622, a decrease of 8.2% over July, but here as well the rate of decline is considerably less than the 16.6% seen from June to July. It may be the case that prospective sellers are also showing some hesitancy, as there are signs across all property types of price decline, although they are very slight at present. However, the overall active inventory has been increasing for several months and August’s increase of 1.5% brought the total available supply to 6,291, almost up to the 10-year average – an ample figure for a good selection for current shoppers. What will likely be a major determinant of how the market moves in the near future will be the Bank of Canada’s next scheduled rate announcement and monetary policy report on October 26. If the Bank continues to hold its policy rate at 5.0% (a reduction at this time is unlikely), both buyers and sellers will no doubt feel more confident in the market’s current stability and there could be an upswing in market activity then. Even at present, however, demand for housing the Fraser Valley remains high. On average, properties listed for sale are on the market for two to four weeks. Detached homes on average sell within 25 days, townhouses within 16 days, and condominiums within 20 days. Prices on the whole remain relatively stable, although modest declines can be found in all areas at this month. At the end of August the combined benchmark price for a Fraser Valley residential property was $1,037,700, a 0.9% decrease from the preceding month.

In my monthly selection below, the current prices in different areas of the Fraser Valley will guide you through comparisons to assist in your home shopping. For each property type, you will find the overall average benchmark price along with the closest average prices in different municipalities. The range of each average is also provided so you can see the upper and lower extremities. The month-over-month price change can also serve as a general indicator of the market activity in the particular area for the last month. Please let me know if you would like more details on any area of your choice for your home search. And if you are thinking of listing your home, I can develop a Customized Market Analysis of your property and neighbourhood, and advise you on the optimal listing price in the current market. I am always happy to help my clients in any way. Please don’t hesitate to call.                        

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of August was $1,534,500, a decrease of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,999,300 and Mission at $,060,100. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,552,900 a decrease of 0.9% from the preceding month; Surrey at $1,576,300, an increase of 0.4% from the preceding month; and Langley at $1,638,700, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,494,300, a decrease of 2/4% from the preceding month; North Delta at $1,407,700, a decrease of 1.5% from the preceding month; and Abbotsford at $1,214,300, a decrease of 2.6% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of August was $849,200, a decrease of 0.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $977,600 and Abbotsford at $653,400. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $856,200, an ncrease of 0.9% from the preceding month; Surrey at $857,900, a decrease of 2.2% from the preceding month; and Cloverdale at $861,000, a decrease of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $783,200, a decrease of 1.2% from the preceding month; Mission at $673,700, an increase of 0.2% from the preceding month; and Abbotsford at $653,400 an increase of 1.2% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of August was $553,500, a decrease of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $636,900 and Abbotsford at $452,000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $584,000, an increase of 0.6% from the preceding month; Cloverdale at $597,100, an increase of 2.9% from the preceding month; and North Delta at $611,500, 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 $500,000, a decrease of 1.3% from the preceding month; Mission at $461,200, an increase of 0.6% from the preceding month; and Abbotsford at $452,000, an increase of 0.5% 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.