FRASER VALLEY

Steep drop in sales; plentiful inventory; significant price reductions   

Fraser Valley sales registered steep month-over-month decline of 13.6% in August. The 941 sales across all property types was slightly above the same month last year, but it marks the last full month of summer as a slow sales year overall for the market. As a buyer’s market, the Fraser Valley continues to offer considerable leverage to buyers prepared to negotiate even further price reductions with some sellers even as softening demand has seen prices sliding downward throughout the summer. For those prospective buyers looking for an opportune purchase, the Valley’s inventory of available homes still remains strong, with 9,787 listed homes across all property types at the end of August. However, the replenishment of the supply has also trended downward, now 15% lower than one year ago. August’s new listings reached 2,373, a 16% decline from the previous month, and 15% below the same period last year. Notably, however, the current inventory is still 33% above the 10-year seasonal average. As international tensions are continuing to create economic uncertainty, Canada’s financial markets are precariously caught between potential price inflation and higher energy costs arising from the Canada-U.S. trade war and the U.S. war on Iran. This past September 2, the Bank of Canada chose to hold its policy rate at 2.25% for the seventh consecutive announcement over the past nine months. As noted here previously, this relatively low rate is keeping variable rate mortgages relatively low, but it is the bond market that impacts fixed mortgage rates directly. Bond yields rise with investors seeing global tensions increasing.  Ratehub.ca in early September showed the lowest 5-year fixed (insured) mortgage rate at 4.44%, while the lowest 5-year variable (insured) mortgage rate was at 3.30%. Fraser Valley home prices have also declined, adding the buyers’ incentives to take advantage of current purchase opportunities. Valley prices are now more than 15% lower than three years ago. At the end of August, the combined benchmark price for residential property in the Fraser Valley was $869,900, a 0.9% decline from the preceding month.  

I invite you to review my monthly guide below to comparative benchmark prices. It provides the overall benchmark price for each property type in a selection of areas across the Fraser Valley. You will find a cluster of the three closest benchmark prices on each side the overall average in different geographical areas. Monthly price fluctuations serve as indication of typical changes arising from recent sales activity. You should remember, however, that benchmarks are averages. I can provide you wity the most up-to-date price listings for any neighbourhood, so b please give me call if you are interested in exploring any particular neighbourhood.  And if you are considering listing your home for sale, I can prepare a Customized Market Analysis and advise you on the optimal listing price in the current market conditions. Across the Fraser Valley in August, the average number of days to sell a single-family detached home was 45 days; for condominiums, it was also 45 days; townhouses  sold on an average of 37 days.  

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of August was $1,319,600, a decrease of 1.2% from the preceding month. The range of the average extended from $1,649,200 in South Surrey/White Rock to $892,700 in Mission. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,322,800, a decrease of 0.2% from the preceding month; Cloverdale at $1,339,700, a decrease of 1.1% from the preceding month; and Langley at $1,479,400, a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,262,400, a decrease of 0.2% from the preceding month; North Delta at $1,186,400, a decrease of 2.2% from the preceding month; and Abbotsford at $1,117,700, an increase of 2.2% from the precedings month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of August was $750,600, a decrease of 0.9% from the preceding month. The range of this average extended from $820,300 in South Surrey/White Rock to $596,600 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $757,200, a decrease of 0.7% from the preceding month; Langley at $820,300, a decrease of 0.6% from the preceding month; and South Surrey/White Rock $820,300, a decrease of 1.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $748,000, a decrease of 0.7% from the preceding month; North Surrey at $681,400, a decrease of 0.7% from the preceding month; and Mission at $621,700, a decrease of 1.4% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of August was $466,100, a decrease of 0.7% from the preceding month. The range of the average was from $550,800 in South Surrey/White Rock to $374,600 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $485,100, a decrease of 2.2% from the preceding month; Cloverdale at $505,700, a decrease of 0.2% from the preceding month; and Langley at $534,000, no change from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $462,800, a decrease of 2.4% from the preceding month; Mission at $414,600, a decrease of 2.7% from the preceding month; and North Surrey at $401,400, a decrease of 1.7% 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.