FRASER VALLEY

Sales jump in February; robust inventory; excellent purchase opportunities

The Fraser Valley saw 843 homes sold in February, a 36% increase over the preceding month. February’s increase was welcome news for a market that has been in doldrums for the previous three months. For patient sellers it was an optimistic sign that buyers may have moved off the sidelines in anticipation of a seasonal resurgence in demand around the corner. Opportune purchase prices and borrowing costs have beckoned for some time but have gone unanswered with many potential buyers holding back on purchase decisions as their personal economic outlook is tied to the country’s continuing economic uncertainty. With the first day of spring on March 20, the next few weeks will be a test between the normal seasonal rise in housing sales and how deeply that uncertainty may be felt. New prospective sellers this past February did not match buyers’ psychology as new listings decreased by 9.0% following January’s big spike of over 2,000 new listings, sustaining a robust inventory of 8,344 available homes at the end of February, 51% above the 10-year seasonal average. Also occurring next week is the Bank of Canada’s next policy rate announcement on March 18. The current rate of 2.25%, set on October 29 last year, is widely expected to remain the same for the near term with Canada’s inflation rate recorded at 2.3% this past January. However, at the beginning of the year there was a slight easing in gasoline prices. The current war in the Middle East is expected to push up oil prices, so next week’s central bank rate announcement will be important to watch. As of March 5, the best 5-year fixed mortgage rate in Canada has been 3.69% and the best 5-year variable mortgage rate 3.35%. Home prices in the Fraser Valley have continued to decline slightly but remain fairly stable across all property types at present. At the end of February, the combined benchmark price for a residential property in the Fraser Valley was $895,100, a 0.2% decrease from the previous month.

In my monthly selection below of comparative benchmark prices, you will find average prices for comparable homes in different areas of the Fraser Valley. For each property type, there are three closest average prices on each side of the overall benchmark average, along with the range of prices making up the average and the month-over-month price changes. These averages may serve as a guide, but if you would specific prices in any neighbourhood, please feel free to call me. I can provide you with the most up-to-date information on all listings. And if you are thinking of listing your home for sale, I can provide a Customized Market Analysis for your property and advise you on the optimal listing price in the current market conditions. During the month of February, the average length of time to sell a single-family detached home was 47 days; townhouses, 39 days; and condominiums 45 days.  

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of February was $1,370,900, a decrease of 0.2% from the preceding month. The range of the average extended from $1,722,800 in South Surrey/White Rock to $948,700 in Mission. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,372,700, an increase of 1.5% from the preceding month; Langley at $1,516,100, an increase of 0.7% from the preceding month; and South Surrey/White Rock at $1,722,800, a decrease of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,348,600, an increase of 1.0% from the preceding month; Cloverdale at $1,347,000, a decrease of 1.5% from the preceding month; and North Delta at $1,277,500, an increase of 0.7% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of February was $770,700, a decrease of  0.3% from the preceding month. The range of this average extended from $863,300 in South Surrey/White Rock to $626,100 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $779,500, an increase of 0.2% from the preceding month; Langley at $810,300, a decrease of 0.5% from the preceding month; and South Surrey/White Rock at $863,300, a decrease of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $767,000, no change from the preceding month; North Surrey at $698,200, a decrease of 0.9% from the preceding month; and Mission at $652,800, a decrease of 0.4% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of February was $488,300, a decrease of 0.1% from the preceding month. The range of the average was from $559,500 in South Surrey/White Rock to $400,800 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $494,100, a decrease of 1.1% from the preceding month; North Delta at $510,100, a decrease of 1.5% from the preceding month; and Cloverdale at $546,600, an increase of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $430,900, an increase of 0.4% from the preceding month; Mission at $430.300, a decrease of 1.6% from the preceding month; and Abbotsford at $400,800 a decrease of 1.6% 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.