Fraser Valley offers affordable, quality homes; declining supply could push prices up.

The start of 2020, both as a new year and a new decade, brings several attractive features for a quality lifestyle in the Fraser Valley. Affordability is still a bid draw, especially for young families and first-time home buyers.  The combined benchmark price for all property types across the region at the beginning of January was 818,000. This is 2.0 per cent less than it was one year ago, and well under the $1-million mark of Metro Vancouver. Across the municipalities in the Valley, prices are currently stable, and despite a declining inventory at present, it is an excellent time to enter the market.  Even with the listing decline last year, there were still over 30,500 new Valley listings in 2019, and 4,600 homes available for sale at the end of December. With buyers now more confident in normal market dynamics, I expect to seer a rise in the rate of sales in the coming year. And with greater home purchasing activity this could create an upward movement in prices, so I recommend you get into the market as early as you can this year.

 

Because quality of life for homeowners in the Fraser Valley is major attraction, I would impress on potential buyers that the long-term equity in a Valley home be seriously considered. If you were to look at price changes in every municipality for the past three years, you would see significant increases ranging from 15 per cent to over 50 per cent, with the exception of detached homes and townhouses in South Surrey/White Rock. In this high-end area alone, prices had spiralled the highest in the period before new government taxes and stricter mortgage rules took effect. It is understandable, therefore, that the market correction there has taken a bit longer. This year the combined benchmark price in South Surrey/White Rock is a mere 0.7 higher than three years ago, but there are some very attractive prices for buyers wanting a higher priced neighborhood. Across all other Fraser Valley areas, you will find quality homes comparably at most affordable prices. Below I have identified each property type closest to its benchmark price in six municipalities. This guide should give you a good idea of the price stability as it shows the one month change for each benchmark. If you have any questions for your particular needs, please don’t hesitate to call me.  

 

Detached Homes

 

The benchmark price for a single-family detached home in the Fraser Valley at the end of December 2019 was $953,700, an increase of 0.2 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,299,500 and Mission at $644,100. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $996,700, an increase of 0.6 per cent from the preceding month; Cloverdale at $998,100, a decrease of 0.1 per cent from the preceding month; and Surrey at $992,200, a decrease of 0.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $933,400, a decrease of 0.2 per cent from the preceding month; North Delta at $904,600, an increase of 1.6 per cent from the preceding month; and Abbotsford at $787,600, an increase of 0.3 per cent from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of December 2019 was $514,900, no change from the preceding month. The extremities of this average were South Surrey/White Rock at $625,000 and Abbotsford at $376,200. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $552,200, a decrease of 0.4 per cent from the preceding month; Surrey at $554,400, no change from the preceding month; and  Cloverdale at $560,700, an increase of 1.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $490,100, no change from the preceding month; Mission at $438,400, a decrease of 0.3 per cent from the preceding month; and Abbotsford at $376,200, a decrease of 0.4 per cent from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of December 2019 was $405,500, an increase of 0.3 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $475,800 and Abbotsford at $309,200. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $407,300, an increase of 2.0 per cent from the preceding month; Surrey at $409,300, a decrease of 0.1 per cent from the preceding month; Cloverdale at $451,200, a decrease of 0.1 per cent from the preceding month; and Cloverdale at 448,700, a decrease of 0.6 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $398,700, an increase of 0.6 per cent from the preceding month; Mission at 337,500, an increase of 0.7 per cent from the preceding month; and Abbotsford at $309,200, no change from the preceding month.

 

Best wishes for a happy and prosperous 2020

May good fortune be your companion throughout this New Year.  Please let me know if I am able to assist you in any of your real estate matters, whether you are planning to buy, to list, or to renovate in the coming year. I am happy to provide detailed market information, or financial expertise on your home or desired area; and can recommend quality, reliable tradespeople if you are thinking about renovations. I enjoy helping my clients in a variety of ways. Please don’t hesitate to call.