FRASER VALLEY
Sharp drop in August sales; easing prices, strong supply support buyers.
Home sales in the Fraser Valley dropped 22% in August from the previous month, a sharp decline following the gradual increases seen since the beginning of the year. With 931 sales for the month, Fraser Valley’s residential market sudden downturn was 13% below the same period last year, and 36% below the 10-year seasonal average. New listings also declined for the month, with a 19% drop from July, but still adding 2,793 available homes to the Valley’s already abundant inventory which totalled 10,445 at the end of August. While summer is generally a higher sales period, the swift drop entering fall may be attributed to other factors such as continuing uncertainty in Canada’s economic outlook. The Valley’s abundant inventory has provided an excellent choice for home buyers for several months. Although August closed with 205 homes fewer available homes than the end of July, a strong supply remains in place. Buyers’ market conditions continue with strong supply, slowing demand, and easing prices, making it a most favourable time for home buyers. Prospective buyers will also want to watch for the Bank of Canada’s policy rate announcement scheduled for today, September 17. If the economists who have predicted the central bank will announce another reduction of 25 basis point today are right, commercial mortgage rates can be expected to drop following soon. The current Bank of Canada policy rate 2.75% has held steady since June. Overall market conditions are lining up as incentives for prospective home buyers, so there may a rise in demand after the lull this past month. Easing prices are also serving as a incentive for home purchases. At the end of August, the combined benchmark price for a Fraser Valley residential property was $936,200, a decline of 0.9% from the preceding month.
Please review my monthly selection of comparative benchmark prices for different areas in the Fraser Valley in the section below. For each property type, you will find the overall benchmark price along with three closest average prices on each side of the benchmark average. The month-over-month price change is also provided as these fluctuations can serve as an indicator of the recent relative demand in a particular area. Note the extremities of each benchmark price provide the range of figures making up the average. It is important to remember that benchmarks are averages. You may find an actual asking price that is closer to your budget, so please don’t hesitate to ask me about any neighborhood you may be interested in. I am happy to provide you with the most up-to-date information on any listed properties. And if you are thinking of selling your home, I can prepare a Customized Market Analysis for you property, and advise you on the optimal listing price in the current market conditions. At the end of August, a Fraser Valley single-family detached home sold on average within 38 days on the market; townhouses sold on average within 32 days of listing; and condominiums within 41 days. Please don’t hesitate to call if I can help you in any way at all.
Detached Homes
The benchmark price for a detached home in the Fraser Valley at the end of August was $1,436,800, a decrease of 1.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,795,500 and Mission at $1,025,400. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,440,800, an increase of 0.4% from the preceding month; Surrey at $1,451,500, a decrease of 1.1 from the preceding month; and Langley at $1,590,800, a decrease 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 $1,423,100, a decrease of 0.9% from the preceding month; North Delta at $1,321,300, a decrease of 0.9% from the preceding month; Abbotsford at $1,171,900, a decrease of 0.7% from the preceding month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of August was $807,800, a decrease of 0.9% from the preceding month. The extremities of this average were North Delta at $933,000 and Abbotsford at $645,700. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $811,800, a decrease of 1.2% from the preceding month; Langley at $848,100, a decrease of 0.5% from the preceding month; and South Surrey/White Rock at $921,200, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $795,900, a decrease of 1.7%% from the preceding month; North Surrey at $764,200, an increase of 1.8% from the preceding month; and Mission at $665,500, a decrease of 1.0% from the preceding month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of August was $514,100, a decrease of 1.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $588,600 and Abbotsford at $421,800. The three municipalities closest to the benchmark on the higher side of the average were Surrey at $547,400, a decrease of 0.4% from the preceding month; North Delta at $514,100, a decrease of 1.0% from the preceding month; and Cloverdale at $572,500, a decrease of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $445,900, a decrease of 2.7% from the preceding month; Mission at $434,700, a decrease of 1.5% from the preceding month; and Abbotsford at $421,800, a decrease of 1.5% 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.