FRASER VALLEY

Valley market springs to life; home sales shoot up with robust inventory

Fraser Valley home sales shot up in February by 12.5% from the previous month, as the market appears to have awakened suddenly following four months of slumber. With its 920 sales posted in February, Valley sales are still down by 26% compared to same period one year ago. The market has been slow to recover from the lengthy period of high interest rates which began to come down last summer. However, with the Bank of Canada’s last rate at the end of January, bringing the central bank’s policy rate to 3%, buyers appear to be responding to more attractive mortgage rates that have followed suit. Variable rates, which typically  drop in tandem with the BoC policy rate, are now available at brokers and commercial banks as low as 4%. Fixed rates on five year terms, which are set on forward bond yield rates, are slightly lower, around 3.8%. Among other factors making the Fraser Valley market attractive to home shoppers again, a robust inventory with over 8,000 available listings is 45% above the same month one year ago, and 55% above the 10-year seasonal average. New listings in February of 3,121 also provide a rich choice for home shoppers who have been waiting on the sidelines for several months. As the valley market moves toward balanced territory, it is currently still a buyer’s market with only modest price increases or some price declines currently seen in all property types and geographical areas. Rising demand is expected to continue in anticipation of another Bank of Canada another rate cut today, March 12. It is expected to bring the key policy rate to 2.75%. Fraser Valley home prices are still extremely attractive with the combined benchmark price for a residential property at the end of February at $962,500, a 0.2% decline from the previous month.      

I invite you to review my monthly selection of benchmark prices for different areas of the Fraser Valley in the section below. For each property type, I show the three closest average prices on each side of the overall benchmark average. Also included are the month-over-month price changes. These fluctuations provide a insight into the relative demand in a particular area for the last month. Also, from the extremities of each benchmark, you can see the range of prices making up the average. Keep in mind, that benchmarks are averages and an actual price may be more precise fit for you budget. I am happy to provide you with the most up to date information on any neighborhood. And if you are thinking of selling your home, I can prepare a Customized Market Analysis for you property and advise you on the optimal listing price in the current market. During the month of February, the average length of time a single family detached home remained on the market was 39 days; for townhouses, 32 days; and for condominiums, 36 days. Please call with any questions you may have. I am happy to help you with any of your real estate needs.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of February was $1,489,100, an increase of 0.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,844,400 and Mission at $1,056,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,520,800, an increase of 0,7% from the preceding month; North Surrey at $1,524,700, an increase of 2.9% from the preceding month; and Langley at $1,617,700, a decrease of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $1,398,800, a decrease of 1.2% from the preceding month; Abbotsford at $1,204,100, a decrease of 0.3% from the preceding month; Mission at $1,056,200, an increase of 3.0% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of February was $820,600, a decrease of 0.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $927,500 and Abbotsford at $657,600. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $826,500, a decrease of 1.3% from the preceding month; Langley at $837,100, a decrease of 1.2% from the preceding month; and North Delta at $899,600, a decrease of 2.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $817,600, a decrease of 1.2%% from the preceding month; North Surrey at $749,000, a decrease of 0.3% from the preceding month; and Mission at $667,500, a decrease of 2.6% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of February was $533,200, a decrease of 0.3% from the preceding month. The extremities of this average were  South Surrey/White Rock at $609,400 and Mission at $453,200. The three municipalities closest to the benchmark on the higher side of the average were Surrey at $546,300, a decrease of 2.9% from the preceding month; North Delta at $550,500, a decrease of 3.1% from the preceding month; and Cloverdale at $562,700, a decrease of 2.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $481,700, an increase of 0.3% from the preceding month; Mission at $453,200, a decrease of 0.9% from the preceding month; and Abbotsford at $441,100, a decrease of 0.2% 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.