FRASER VALLEY
Home sales down 60% from one year ago; market declines flattening
As prospective home buyers and sellers watch what the new year will bring for the Fraser Valley, early indicators suggest the decline in market activity seen over the last half of 2022 is flattening out. While the Bank of Canada’s key policy rate, currently 4.25%, is not expected to increase in the Bank’s next scheduled announcement on January 25, mortgage costs will continue to dampen sales during 2023. However, the rapid decline in home sales since last spring is slowing, as indicated in the latest data, and a rebalanced market should start to see more listings emerge to meet the pent-up demand as market uncertainty eases. Annual home sales in the Valley at the end of 2022 closed at more than 60% down from one year ago, the lowest for December in 10 years, while the month of December was down nearly 15% from the previous month. New listings were also down, with 803 in December, a decrease of 52.8% from the preceding month, and 37.2% down from the same period one year ago. December’s new listings brought the total available inventory in the Valley to 3,923, a decrease of 26.4% from the preceding month, but up 100% for the same period one year ago. More new listings or housing development will be needed this year to ease any upward pressure on prices from a low inventory as demand begins to increase; however, at present prices have continued their to decline. The Fraser Valley’s combined benchmark price across all property types at the end of December 2022 was $955,700, a decline of 2.0% from the previous month and 5.1% down from one year ago. Notably, the current Fraser Valley combined benchmark is under the $1-million mark which was surpassed for the first time in the Fraser Valley in April 2021. This provides a comparative opportunity to find a Valley property when the Metro Vancouver composite benchmark is over $1-million, at $1,114,300.
For a current selection of benchmark prices in different areas of the Fraser Valley, please view the section below. For each property type you will find the overall benchmark price along with cluster of prices closest to the benchmark of each side of the average. By looking at the one month change in prices, you can glean some idea of the relative market activity for each property type in each area. The extremities of the overall benchmark will inform you of the range of prices making up the average. This can be used as guideline for home shoppers wanting to know the current comparative prices for similar homes across the Valley. However, remember that benchmarks are averages, and you may find a bargain by exploring areas in a more detailed manner. If you are interested in a particular area, please give me call. I keep a close eye on the market and will be happy to provide you with any specific information you desire. I can also develop a Customized Market Analysis for you current property if you are thinking of selling. Please don’t hesitate to ask. I am always happy to help my clients in any way possible.
Detached Homes
The benchmark price for a detached home in the Fraser Valley at the end of December was $1,377,200, a decrease of 2.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,829,400 and Mission at $908,00. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,416,900, a decrease of 0.7% from the preceding month; Langley at $1,484,300, a decrease of 1.8% from the preceding month; and South Surrey/White Rock at $1,829,400, a decrease of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,368,000, a decrease of 2.2% from the preceding month; North Surrey at $1,361,300, a decrease of 4.5% from the preceding month; and North Delta at $1,259,300, a decrease of 1.1% from the preceding month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of December was $787,300, a decrease of 1.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $903,800 and Abbotsford at $625,500. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $789,600, a decrease of 0.4% from the preceding month; Cloverdale at $791,900, a decrease of 1.3% from the preceding month; and North Delta at $813,600, a decrease of 1.7 from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $713,200, a decrease of 3.3% from the preceding month; Mission at $625,500, a decrease of 2.2% from the preceding month; and Abbotsford at $625,500, a decrease of 2.2% from the preceding month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of December was $504,800, a decrease of 2.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $571,400 and Abbotsford at $404,200. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $518,700, a decrease of 6.0% from the preceding month; Surrey at $520,900, a decrease of 1.6% from the preceding month; and North Delta at $537,200, a decrease of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $465,100, a decrease of 2.8% from the preceding month; Mission at $442,600, a decrease of 0.2% from the preceding month; and Abbotsford at $404,200, a decrease of 5.7% from the preceding month.
I can help
These are challenging times for home buyers and homeowners. With higher mortgage interest rates, you may need to adjust your financial strategy for your home purchase. If you need help in managing your home ownership plans, I can help. I have 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.