Fraser Valley’s home sales volume highest in 100 years; detached home prices spike in some areas.

Fraser Valley home sales shattered another record this past February, reaching the highest recorded volumes in 100 years. The extraordinary market activity is a continuation of a surging trend since last fall. The total of 2,815 Valley sales last month was 108% more than the same period one year ago, and 64% higher than the preceding month of January. On the 10-year comparison, February’s 88% increase was also significantly higher than January’s 10-year comparison of 72% higher.  Market watchers can monitor this newsletter over coming months to track this ongoing trend. The boom in the Fraser Valley’s real estate sales has been gaining momentum since last September as the country’s low mortgage rate regime gains more traction during the prolonged Covid-19 period. Last month, Bank of Canada Governor, Tiff Macklem, recognized that Canada is relying on its real estate sector during this pandemic-weakened economy. “We need the growth we can get,” said Mr. Macklem, and Fraser Valley home buyers are certainly doing their part. As part of the pandemic-driven shift away from denser urban living to larger homes in semi-rural areas, new home buyers are discovering what Valley residents have known for a long time. The region’s family-oriented communities provide quality lifestyles at prices considerably lower than Metro Vancouver. Affordability has been attracting many first-time home buyers among young single persons and young families for some time. However, with spring just around the corner, prospective new buyers should not delay their decisions. The current unseasonably high demand is causing prices to jump in several areas across the price spectrum. Notably for detached homes, South Surrey/White Rock saw a one- month benchmark spike in of 8.2%, while Abbotsford saw a jump of 6.7%.   

The composite benchmark price for a Fraser Valley property at the end of February was $935,400. an increase of 3.9% from the preceding month. This is by far the Valley’s largest month-over-month composite benchmark increase in a long time, although notably the Valley’s composite benchmark is still below the $1-miilion mark, long since surpassed in Metro Vancouver.  But at the present rate of increase, it will only be a couple of months before the $1-million threshold is exceeded in the Valley as well. While high demand is the primary driver of the upward price pressure, it is important to factor in the declining number of new listings in recent months. The Valley’s total available inventory at the end of February was at its lowest level ever for this month, with 4,210 listings. Potential home sellers may be waiting for even higher prices, but this is an unnecessary measure in seller’s market. Competition among buyers for a listed home can often drive the price offer above the asking price. So, if you are considering listing your home, I encourage you to do it now. Below you will be able to see my monthly selection of benchmark prices for each property type in a comparison of different geographical areas. Prospective home buyers and sellers will find this a useful guide to observe month-over-month average price changes across the Valley. Notably, prices are increasing for all property types, but the rate of increase is not as steep for townhouses and condominiums yet. Single family detached homes and attached townhouses are selling fastest, both remaining on the market for an average of only 21 days. Condominiums are selling on average in 35 days. In these current exceptional market conditions, I am urging my clients to contact me to receive a detailed market comparison for a specific property. I am happy to help you make the wisest decision for your circumstances at this time.  

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of February was $1,163,400, an increase of 5.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,546,700 and Mission at $822,800. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,190,300, an increase of 4.4% from the preceding month; Langley at $1,210,600; an increase of 4.1% from the preceding month; and Cloverdale at $1,245,900, an increase of 8.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,143,200, an increase of 5.3% from the preceding month; North Delta at $1,068,500, an increase of 5.7% from the preceding month; and Abbotsford at $988,800, an increase of 6.7% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of February was $600,300, an increase of 3.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $718,100 and Mission at $495,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $610,100, an increase of 3.3% from the preceding month; Langley at $611,600, an increase of 3.1% from the preceding month; and Cloverdale at $658,500, an increase of 4.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $592,100, an increase of 2.7% from the preceding month; North Surrey at $583,100, an increase of 0.7% from the preceding month; and Abbotsford at $501,900, an increase of 2.9% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of February was $450,900, an increase of 2.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $512,400 and Abbotsford at $415,600. Only two municipalities were on the higher side of the average: Cloverdale at $489,800, an increase of 3.7% from the preceding month; and South Surrey/White Rock at $512,400, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $447,400, an increase of 3.3% from the preceding month; North Surrey at $433,000, an increase of 3.6% from the preceding month; and Langley at $415,600, an increase of 2.3% from the preceding month. 

 

I can help

One of the ways I work hard for my clients is to stay abreast of the most recent events in the real estate market. By watching price changes each month for all property types, I am able to give you the most up-to-date advice for both buying and selling. I am always happy to chat with you about any of your real estate questions. The is no obligation and no pressure. I am here to help. Please feel free to call me.