FRASER VALLEY

Valley home prices inching up after long chill; sales slump sees rising inventory.  

The Fraser Valley residential market in February saw its first month-over-month increase in the number of sales in four months. While still below the normal volume for the month, February’s total of 898 homes sold was an increase of 43.5% cover the preceding January. The sharp uptick comes while mortgage rates remain high while Canada’s central bank continues its high policy lending rate to commercial banks. In addition to sales moving upwards, Valley home prices also showed modest upward movement after the Bank of Canada’s market cooling effort has prices falling since last spring. Home prices for all property types across  each area of Fraser Valley beginning to sprout much like spring flowers trying to push up after a long chilling period. While the central bank held its current key interest rate at 4.5% in its most recent rate announcement last week, it was cold comfort for many prospective home buyers who have had to postpone a home purchase during the current regime of higher mortgage rates. However, last week’s holding steady of the current central bank rate is the first optimistic sign that the Bank of Canada’s fight against inflation is beginning to meet it objective. Canada’s core inflation rate has dropped to between and 3.0% and 4.0%. Although many consumers will not see this in their daily shopping for groceries and gasoline, it is an indicator that the bank’s monetary tightening is starting to gain traction. The central bank wants to reach an Consumer Price Index of around 2.0% which may not happen until next year. However, the current rate pause is a hopeful sign that that mortgage rates will plateau this year and begin to soften after that. In the meantime, while sales perked up significantly last month, the February increase was only about 50% of what it was a year ago. Nonetheless, with the lower sales volume at the present time, the Fraser Valley’s inventory is being restored. New listings in the Valley in February reached a total of 1,938, a 5.7% increase over the previous month, while still more than 48% lower than one year ago. Among the active listings in the Valley market now there are over 16% more available properties that there were for this period last year. For those buyers who are able to meet mortgage qualifications, at this time, I would recommend taking advantage of the growing selection of homes before prices begin moving up again more quickly.

The composite benchmark price for a residential property in the Fraser Valley at the end of February was $946,700,a mere increase of 0.5% from the preceding month. Notably, the Valley’s composite benchmark price is still under $1-million, which was surpassed before the price decline that flowed from slower sales occurred. In the selection of benchmark prices below, I have presented a guide for both prospective buyers and sellers to compare average prices in different areas of the Fraser Valley. I encourage you to examine the month-over-month price changes to gain an insight into which areas and property types are showing the highest demand currently. For each property type, you will find a cluster of comparative prices on each side of the average price. This will give you a snapshot of last month’s market activity, but please call me if you would like more detailed information on any property type in your preferred neighborhood. And if you are thinking of listing your home foe sale, I will be happy to prepared a Customized Market Analysis for your property showing recent sale prices for comparable home in your area. Please don’t hesitate to call with any questions you may have for your real estate interests. I am always happy to help my clients in any way  I can.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of February was $1,364,300, an increase of 0.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,776,300 and Mission at $884,200. The three municipalities closest to the benchmark on the higher side of the average were:  Cloverdale at $1,398,400, an increase of 0.4% from the preceding month; Surrey at $1,414.900, an increase of 0.3% from the preceding month; and Langley at $1,467,800, 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 $1,357,600, an increase of 1.1% from the preceding month; North Delta at $1,243,700, a decrease of 1.4% from the preceding month; and Abbotsford at $607,000, a decrease of 1.8% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of February was $776,200, an increase of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $885,700 and Abbotsford at $394,100. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $783,500, an increase of 0.1% from the preceding month; Surrey at $784,400, an increase of 0.7% from the preceding month; and Langley at $801,300, an increase of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $707,100, an increase of 3.0% from the preceding month; Mission at $625,200, a decrease of 1.3% from the preceding month; and Abbotsford at $607,000, a decrease of 1.8% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of February was $510,100, an increase of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $574,100 and Abbotsford at $394,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $534,500, a decrease of 0.4% from the preceding month; North Delta at $547,400, an increase of 0.6% from the preceding month; and Langley at $557,500, an increase of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $484,500, an increase of 1.5% from the preceding month; Mission at $435,400, a decrease of 0.5% from the preceding month; and Langley at $57,800, an increase of 1.5% 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.