Fraser Valley home sales set new January record. Notable price declines in Condominiums

Setting a new record, Fraser Valley residential sales soared to an historical high in the opening month of 2021. January’s sales across all property types closed at a total 1,718, 72% above the 10-year average, and 28% higher than the previous record set five years ago. While winter months typically record slower activity, and Valley sales did decline by 18% from the preceding month, demand is currently higher than usual, as home buyers continue as they have since last summer to take advantage of Canada’s low mortgage rates. With Covid-19 protocols firmly established for enhanced safety in property viewing, many home buyers are also looking to the Fraser Valley for lifestyle features not available in denser urban areas. Affordability is also a key attraction, and the Valley continues to draw first-time home buyers and young families to spacious, quality homes at prices within their budgets. The composite benchmark price for a Valley home at the end of January was $900,600, still well below the comparable benchmark in Greater Vancouver by difference of $156,000. The Fraser Valley’s high demand, however, is accelerating the rise in prices and many home buyers are acting now, not waiting until Spring as they have typically done in previous years. For example, the composite benchmark price rose by 1.4% in last month in the Valley, compared with a rise of 0.6% in Greater Vancouver in the same period. On the supply side, new listings in January increased to 2,784, a sharp increase of 85% over the preceding month’s total of 1,502. However, despite this one-month uptick, the total inventory of available Valley properties at the end of January was 4,210. This is an ample supply to provide a good selection for home buyers, but notably supply is not keeping up with demand. In historical terms, the supply of available housing is down 18% from last year’s active listings at this time, and 30% below the 10-year average. A ‘seller’s market’ is therefore in effect at present with an overall price rise occurring. However, it is important to note some unevenness in price changes among different housing types.

Price increases for single family detached homes have been the highest among the three property types compared below. This detached home category has been the main driver in the composite benchmark price rise, but it is important to look at benchmarks for townhouses and condominiums within this overall increase. Townhouse prices have also increased, but not nearly at the rate of detached homes. And most notably, you will find a number of decreases in condominium prices, making them particularly good buys at this time. While monthly price fluctuations are not necessarily indicative of a trend, they can serve as aid to understand the composite benchmark which has been trending upwards for several months. Prospective sellers may also be interested in how long their newly listed property will take to sell. Across the Fraser Valley in January, single family detached homes sold on average within 35 days; townhouses within 28 days; and condominiums within 37 days. Please take a look at the comparative benchmark prices for each property type in different areas of the Fraser Valley below. Each shows the one-month price change for properties clustered around the benchmark price for its type. I will be happy to provide you with more detailed comparison of any specific property in a neighbourhood of your choice.    

 Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of January was $1,106,500, an increase of 2.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,476,500 and Mission at $795,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,140,400, an increase of 2.2% from the preceding month; Cloverdale at $1,151,800; an increase of 2.1% from the preceding month; and Langley at $1,163,100, an increase of 2.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,086,100, an increase of 2.5% from the preceding month; North Delta at $1,010,900, an increase of 1.9% from the preceding month; and Abbotsford at $927,000, an increase of 3.4% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of January was $580,800, an increase of 0.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $681,500 and Mission at $482,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $590,500, a decrease of 0.6% from the preceding month; Langley at $593,200, an increase of 1.1% from the preceding month; and Cloverdale at $631,400, an increase of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $578,900, an increase of 3.2% from the preceding month; Langley at $593,200, an increase of 1.1% from the preceding month; and Abbotsford at $487,800, no change from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of January was $439,800, an increase of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $510,000 and Abbotsford at $327,300. Only two municipalities were on the higher side of the average: Cloverdale at $472,300, a decrease of 0.9% from the preceding month; and South Surrey/White Rock at $510,000, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $432,900, an increase of 2.5% from the preceding month; North Surrey at $418,100, a decrease of 0.4% from the preceding month; and Langley at $406,100, an increase of 1.5% from the preceding month. 

 

I can help

I am here to help you, whatever your housing requirements, I bring experience in banking and finance to assist you in your mortgage planning. If you are thinking about listing your home for sale, I can also advise you on the optimal price for the current market conditions. And in case you are thinking about home renovations that will increase your home value, I can recommend reputable tradespeople who do excellent work at fair rates. Please don’t hesitate to call me. It gives me great pleasure to help my clients.