FRASER VALLEY

Sales and new listings on the rise; prices inching upwards

The Fraser Valley residential market saw another month of rising sales and new listings in February, continuing its high energy year-opening in January – a  momentum that could be sustained with interest rate cuts expected later this year. As both buyers and sellers begin to a return after a lengthy period of inflation fighting policies by the Bank of Canada, the Valley’s real estate activity is picking up at a healthy pace. February sales of 2,797 were 32% over January, while new listings reached 2,797, a 23% increase over January and 4% over the 10-year average. This brought the Valley’s available inventory of homes at the end of February at 5,561, a 14% increase over the preceding January and 26 higher than the same period last year. This is not to say it is healthy inventory. For the previous two years, the Fraser Valley’s stock dropped to a 40- year-low around 4,000 available homes. While the current boost in listings does provide home shoppers with a considerably great selection, the Valley’s supply has some catching up to its earlier healthy levels when there were between 7,000 and 8,000 available homes. Even as the signs of the market recovery are appearing, the Bank of Canada maintained its 5% policy rate last week despite Canada’s inflation rate dropping below 3% in January. Interestingly, the major challenge the central bank now faces in ongoing inflationary pressure is that shelter costs are the biggest single factor contributing to Canada’s current inflation battle. Along with the rise in mortgage interest costs, shelter inflation is now at 6.2% – nearly 1/3 of the weighting inside the Consumer Price Index. So, while Canada’s overall CPI inflation has now dropped below 3%, it appears that mortgage rates are the primary reason keeping the 2% target at bay. In the meantime, with the increased sales and low inventory, prices have also begun to inch upwards, with modest increases last month across all property types. At the end of February, the combined benchmark price for a residential property in the Fraser Valley was $994,800, a 0.9% increase over the preceding month.

For prospective buyers and sellers, the selection of comparative benchmarks below serves as a guide to home prices in different municipalities in the Fraser Valley. In each property type, you will find a cluster of the three closest prices on each side of the average, along with the extremities of the range making up the average. Keep in mind that averages are abstractions and specific prices may suit your budget more precisely. Please feel free to give me call for the most up-to-date information on home prices in the neighborhood of your choice. And if you are thinking of listing your home, I can advise you on the optimal listing price based on recent sales of comparable properties. During last month, the time on the market for listed properties to sell was significantly less than in January. Single family detached homes sold on average within 35 days in February compared with 44 days in January; townhouses within 28 days, compared with 33 days in January; and condominiums within 29 days, compared with 41 days in January. As we get closer to spring, market activity typically increases so I encourage you to start browsing now if you are considering a purchase soon.       

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of February was $1,485,600, an increase of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,887,100 and Mission at $1.034,800. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,610,900, an increase of 3.0% from the preceding month; Surrey at $1,524,900, an increase of 0.9% from the preceding month; and Langley at $1,691,200, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,475,200, an increase 1.5%  from the preceding month; North Delta at $1,046,700, an increase of 4.2% from the preceding month; and Abbotsford at $1,195,400, an increase of 2.0% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of February was $831,000, an increase of 0.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $952,200 and Abbotsford at $648,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $840,000, an increase of 1.0% from the preceding month; Langley at $848,900, a decrease of 0.1% from the preceding month; and Cloverdale at $851,200, an increase of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $771,000, an increase of 1.9% from the preceding month; Mission at $673,100, an increase of 0.8% from the preceding month; and  Abbotsford at $648,400, a decrease of 0.7% from the preceding month.

 

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of February was $548,100, an increase of 1.2% from the preceding month. The extremities of this average were Cloverdale at $616,000 and Mission at $443,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $559,300, an increase of 0.1% from the preceding month; North Delta at $546,100, an increase of 0.3% from the preceding month; and Langley at $606,000, an increase of 1.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $500,500, an increase of 0.9% from the preceding month; Abbotsford at $457,400, an increase of 3.2% from the preceding month; and Mission at $443,800, a decrease of 1.6% 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.