FRASER VALLEY
Slight decline in Valley sales still strong for winter; new listings lag
Following the busiest year ever seen the Fraser Valley’s residential market, the new year continues with robust activity this winter, although December showed a modest seasonal decline in sales, down 8.3% from the preceding November. Total sales for December 2021 were also 13.3% lower than the same month one year ago. While sales in the winter are typically slower, last month’s sales total of 1,808 is not far behind the monthly average of 2,307 in the record setting 2021 year. Last year marked the highest number of home sales in the Fraser Valley’s 100-year history, 39% higher than the previous year and over 15% higher than the previous annual record set in 2016. As is well-known now, the home sales boom has been largely driven by the low interest rate regime maintained by the country’s central bank during the pandemic period. The Fraser Valley, moreover, has been a particularly attractive market for both first time home buyers as well as single families, many of which have migrated during the pandemic from denser urban areas to take advantage of the Valley’s more spacious residences in a semi-rural environment. However, the sustainability of the recent surge in Fraser Valley home buying is now in question as new listings are not keeping pace with the high demand. At the end of December 2021, the Valley’s active inventory was 60% below its 10-year average, and the lowest level in over four decades, with only 1,957 units listed at the beginning of the new year. Illustrating how rapidly the inventory has declined recently, the December figure can be compared to the preceding November which closed at 3,048 available units. The supply-demand relation is at its most critical point in recent years, and can be expected to exert even stronger upward pressure on home prices across the Valley this year without a significant boost in supply.
The combined benchmark price for a Fraser Valley residential property at the end of December 2021 was $1,184,400, a 3.6% increase from the preceding month. The Valley’s combined benchmark price surpassed the $1-million mark for the first time in April 2021. While the Fraser Valley has historically offered home buyers with quality life-style home at a lower cost than in Metro Vancouver, the gap between the two regions has now considerably smaller. The composite benchmark price for a Metro Vancouver residential property y at the end of December 2021 was 1,230,200, a difference of less than $50,000. Below you will find my monthly selection of benchmark comparisons for each property type in different geographical areas of the Fraser Valley. The prices show the one month per centage of change for each area which is a general indicator of the demand in the area. If you are interested in a particular area, please don’t hesitate to call me. I can provide you with more detailed information on the latest price changes, and new listings. And if you at considering selling your home, I can advise you on the optimal listing price in this dynamic market. Please let me know how I can help.
Detached Homes
The benchmark price for a detached home in the Fraser Valley at the end of December 2021 was $1,549,900 an increase of 3.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,877,700 and Mission at $1,072,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,549,900, an increase of 3.4% from the preceding month; Langley at $1,560,600 an increase of 4.3% from the preceding month; and Cloverdale at $1,582,500, an increase of 3.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,488,100 an increase of 3.5% from the preceding month; North Delta at $1,397,900, an increase of 3.5% from the preceding month; and Mission at $1,072,400, an increase of 4.4% from the preceding month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of December 2021 was $765,800 an increase of 3.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $921,600 and Mission at $636,800. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $766,300, an increase of 5.6% from the preceding month; Langley at $520,700, an increase of 1.3% from the preceding month; and Surrey at $785,500, an increase of 3.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $735,900, an increase of 1.3% from the preceding month; Abbotsford at $644,200, an increase of 4.4% from the preceding month; and Mission at $636,800. an increase of 3.0% from the preceding month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of December 2021 was $549,200 an increase of 3.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $619,500 and Abbotsford at $432,100. Only two municipalities were on the higher side of the average: Cloverdale at $589,000, an increase of 5.4% from the preceding month; and South Surrey/White Rock at $619,500 an increase of 2.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $543,400, an increase of 3.1% from the preceding month; Langley at $520,700, an increase of 2.7% from the preceding month; and North Surrey $508,800, an increase of 4.3% from the preceding month.
How can I help?
I am here to help you, whatever your housing requirements. I bring experience in banking and finance to assist you in your mortgage planning. If you are thinking about listing your home for sale, I can also advise you on the optimal price for the current market conditions. And in case you are thinking about home renovations that will increase your home value, I can also recommend reputable tradespeople who do excellent work at fair rates. Please don’t hesitate to call me. It gives me great pleasure to help my clients.