FRASER VALLEY

New year starts with balanced market; one year overall price decline 6%; low borrowing costs

Recording month-over month declines in home sales and new listings in December, the Fraser Valley residential market continued the downward trend it saw for the last two months of 2025. December sales were down from the preceding month by 2.5% for a total of 919 transactions. This was also 7.5% below sales for the same month one year ago.  While there was also a drop in new listings for the last month of the year, noticeably steep with a 39% decline, it was not unusual to see a slow down in new homes added to the available supply at this time of year. The 1,350 newly listed homes in December brought the total inventory to 6,695 homes at the end of the month. Although down 24% from the preceding month, the nearly 7000 available homes still offer an excellent selection across all property types to begin the new year. The sharp month-over-month decline can be attributed to exceptionally high numbers of new listings during the last quarter of 2025 that also saw a steady slowing in sales. This combination had tilted purchase conditions to a buyers’ market with more negotiating room for purchasers, even though many prospective buyers remained on the sidelines throughout the economic uncertainty that characterized 2025. However, opening the year with a somewhat reduced inventory rebalances the market with a sales-to-active listing ratio of 13% at the end of 2025. For both buyers and sellers, this may provide more predictability to a final transaction price and make for more quickly expedited sales. Another factor bearing on a potentially revitalized market is that borrowing costs are still relatively low. The Bank of Canada’s current policy rate of 2.25%, set near the beginning December, will be watched for its next scheduled announcement on January 28, but the current policy rate appears to be keeping inflation in check. The national Consumer Price Inflation rate is still close to its target of 2.0. Rate hub currently reports the lowest 5-year fixed rate in Canada is 3.84% and the lowest 5-year variable rate in 3.46%.  Price drops offer another incentive to buyers at present. At the end of December, the composite benchmark price for residential property in the Fraser Valley was $905,900, a 0.7% decline from the preceding month. This is notably 6.0% lower than one year ago.

I invite you to review my monthly guide to benchmarks prices across different areas of the Fraser Valley in the section below.  The six price levels for each property type represent the three closest average prices above the overall benchmark average for the whole region and the three closest prices below. The benchmark average is for comparable homes in each municipal area. If you would like to explore a particular area, I can provide you with the most up-to-date listings with specific asking prices. And if you are thinking of selling your home, I can prepare a Customized Market Analysis of your property based on the most recent sales in your neighborhood and advise you on the optimal asking price in the current market conditions.  

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of December was $1,388,400 a decrease of 1.2% from the preceding month. The range of the average extended from $1,732,300 in South Surrey/White Rock to and $973,500 in Mission. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,404,300 a decrease of 0.6% from the preceding month; Langley at $1,514,400, a decrease of 1.9% from the preceding month; and South Surrey/White Rock at $1,732,300, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,385,100, a decrease of 1.5% from the preceding month; North Surrey at $1,357,300, a decrease of 2.5% from the preceding month; and North Delta at $1,267,100, an increase of 1.2% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of December was $781,300, a increase of 0.3% from the preceding month. The range of this average extended from $885,700 in South Surrey/White Rock to $634,600 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $781,700, an increase of 0.4% from the preceding month; Langley at $822,200, a decrease of 0.6% from the preceding month; and South Surrey/White Rock at $885,700, an increase of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $773,200, an increase of 0.7% from the preceding month; North Surrey at $707,200, an increase of 2.4% from the preceding month; and Mission at $655,400, an increase of 1.4% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of December was $491,600, a decrease of 1.0% from the preceding month. The range of the average was from $570,800 in South Surrey/White Rock to $403,800 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $500,900, a decrease of 1.6% from the preceding month; North Delta at $520,600, a decrease of 1.8% from the preceding month; and Cloverdale at $536,700, a decrease 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 $441,600, a decrease of 0.4% from the preceding month; Mission at $429,700, a decrease of 0.3% from the preceding month; and Abbotsford at $403,800, a decrease of 0.7% 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.