FRASER VALLEY

New year opens with ongoing strong home sales in Fraser Valley

The surge of residential sales in the Fraser Valley showed no signs of abating as the new year rolled in on the heels of the busiest December on record. Closing the sixth consecutive month of record sales in 2020, December’s sales volume reached 2,086, over 81% higher than normal for this usually slower winter month. The strong demand for a Fraser Valley property has been ongoing since the market’s recovery began after the slowdown produced by Covid-19 last spring. Low mortgage interest rates, implemented as way of stimulating home purchases during the Covid-19 recovery, have contributed to the current demand and prospective buyers can benefit greatly by taking advantage of this current borrowing climate. The Fraser Valley’s attractive price-levels for more spacious properties comparable to Metro Vancouver has spurred many home buyers to make purchases in the Valley, particularly of single family detached homes, while also remaining high for other property types. Sales of detached homes in 2020 shot up by 41.7% over 2019; townhouses sales rose by 31.2% and condominiums by 5.9%. The Valley’s total sales volume in 2020 reached 19,926, an increase of nearly 29% over 2019, and the fourth highest annual sales since 2011. New listings were also notably strong, with December’s total of 1,502 reaching the second highest level on record for the month. However, even with a ‘seller’s market’ conditions now in effect, the exceptionally high demand reduced the Valley’s active inventory below typical levels, closing at 3,949 home at the end of December. Notably, however, although prices overall are rising with the high demand, the acceleration of the increase has been relatively moderate. Prospective buyers can still find affordable properties as this new year gets underway.  

The combined benchmark price for all property types in the Fraser Valley at the end of December 2020 was $888,100, an increase of 1.1% from the preceding month. Still well below the Metro Vancouver combined benchmark which exceeds the $1-million mark, Fraser Valley homes have long been sought for their affordability while offering quality living conditions in  semi-rural communities. With high demand expected to continue in 2021, Covid-19 protocols have been firmly established to accommodate prospective buyers in a safe shopping environment, and at the same time working so as not to inhibit new listings. If you are contemplating listing your home at this time, please give me call, I can advise you on the best pricing strategy for the current market. Please examine the comparative prices in my selection of geographical areas below. Each area has a cluster of prices around the benchmark for a specific property type, with their most recent monthly price changes. This will give you a general idea of the current market value of your home in a particular area, or what your home buying budget can afford. By examining month-to-month benchmark price changes in this current dynamic market, you can often see areas where the price is responding to a surge in demand. This can also produce declines in other areas, which can indicate an opportune time to purchase. I can assist your search with more detailed market information for any particular area and property type. Please don’t hesitate to give me a call, even if you are not yet ready to make a listing or purchase. I am always happy to advise you with your best interests in mind.  

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of December was $1,079,500, an increase of 1.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,450,900 and Mission at $765,900. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,115,600, an increase of 1.7% from the preceding month; Cloverdale at $1,128,300; an increase of 1.7% from the preceding month; and Langley at $1,136,800, an increase of 1.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,059,900, an increase of 2.3% from the preceding month; Abbotsford at $896,500, an increase of 1.7% from the preceding month; and Mission at $765,900, an increase of 3.7% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of December was $576,200, an increase of 1.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $672,900 and Mission at $481,300. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $579,700, a decrease of 0.4% from the preceding month; Langley at $579,200, an increase of 0.5% from the preceding month; and Surrey at $586,800, an increase 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 $561,200, an increase of 0.1% from the preceding month; Abbotsford at $487,600, an increase of 1.3% from the preceding month; and Mission at $481,300, an increase of 0.9% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of December was $438,300, an increase of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $514,600 and Abbotsford at $325,300. Only two municipalities were on the higher side of the average: Cloverdale at $422,300, a decrease of 1.2% from the preceding month; and South Surrey/White Rock at $514,600, an increase of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $422,300, a decrease of 1.2% from the preceding month; Langley at $400,300, an increase of 0.6% from the preceding month; and North Surrey at $419,700, an increase of 1.0% from the preceding month. 

 

I can help

Please feel free to call me if you need help with any decision making, or if you just want to chat about market conditions in general. If you need specific information on a particular property or neighborhood, I am more than happy to do an analysis of the area of you. I also have professional experience in banking and finance and will gladly guide you through your mortgage requirements.