FRASER VALLEY

New year opens with slower sales pace; new listings increase

The Fraser Valley residential market saw early signs of rebalancing as the pace of January’s sales declined from December and new listings heated up. Seasonal cooling in overall market activity is common in the winter but the combination of a lower sales volume, down almost 28% from the preceding month, and a 67% increase in new listings for the same period is a warm welcome in a market that has been overheated for over a year. As inventory dwindled and prices soared in 2021, the 2,135 new listings received in January will help to ease the competition among Valley home buyers although the total inventory is still low by historical standards. The total inventory of available homes in the Fraser Valley at the end of January was 2,332, down close to 45% from one year ago, but up over 19% from December 2021. More new listings are still needed to meet the replenish the Valley’s plentiful supply of home listings to pre-pandemic levels. With the Bank of Canada’s low interest rate policy in place during most of the pandemic period, historically low mortgage rates have fuelled high demand and steadily rising prices for the past couple of years. Even with the current surge in new listings, the combined benchmark price for a Valley home at the end of January was $1,237,000, an increase of 4.5% from the preceding month. The current difference between the combined benchmark averages for the Fraser Valley and Metro Vancouver is shrinking each month. Metro Vancouver’s composite benchmark at the end of January was  $1,255,200, illustrating that the two markets are now close to each other on an overall average. For Fraser Valley benchmarks in each of the separate property types, see my selection below comparing average prices with the month-over-month price increases.

The following selection of comparative benchmarks in different areas of the Fraser Valley serves as a guide to home buyers to locate a desired property type within their purchase budget. Please keep in mind that benchmarks are averages, and that there are often specific fluctuations on particular homes that are not apparent from the benchmark alone. I am able to provide detailed information on any property listed in your desired neighborhood so please do not hesitate to call me. In addition, if you are thinking of listing your home for sale, I can prepare a detailed Comparative Market Analysis of your home, whatever the property type, and advise you on the optimal listing price for this dynamic market. During the month of January, single family detached homes in the Valley sold on average within 25 days of listing, 10 days faster than the same month one year ago; townhouses sold within 12 days on the market, 28 days faster than for the same period last year; and condominiums sold within 17 days, compared with 37 days in January one year ago. The comparative benchmarks below for January also show the month-over-month increase as a guide to the price pressure in each geographical area. This trend of increasing sales pace for each property type in the Fraser Valley suggests prices will also continue upwards under current market conditions. Spring sales also normally pick up, so if you are considering a purchase I recommend that you proceed without delay while competition for available homes is in its current slower period.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of January was $1,569,300 an increase of 4.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,927,000 and Mission at $1,159,000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,622,300, an increase of 4.7% from the preceding month; Langley at $1,641,300, an increase of 5.2% from the preceding month; and Cloverdale at $1,647,600, an increase of 4.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,594,800, an increase of 4.1% from the preceding month; North Delta at $1,457,900, an increase of 4.3% from the preceding month; and Abbotsford at $1,375,600, an increase of 4.7% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of January was $796,500, an increase of 4.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $961,800 and Mission at $650,500. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $809,800 an increase of 5.7% from the preceding month; Surrey at $830,300 an increase of 5.7% from the preceding month; and Cloverdale at $867,200, an increase of 4.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $793,900, an increase of 2.9% from the preceding month; North Surrey at $747,200, an increase of 1.5% from the preceding month; and Abbotsford at $661,000, an increase of 2.6% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of January was $574,300, an increase of 4.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $633,200 and Abbotsford at $457,100. The three municipalities on the higher side of the average: Surrey at $562,800, an increase of 7.2% from the preceding month; and Cloverdale at $607,400, an increase of 3.1% from the preceding month; and South Surrey/White Rock at $633,200, an increase of 7.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $536,400, an increase of 5.4% from the preceding month; Langley at $534,400, an increase of 2.6% from the preceding month; and North Delta $480,000, an increase of 7.9% from the preceding month. 

 

Let me help

 

I am working hard to help my clients during this challenging time. I know many of you want to find a home while prices are still within your budget. If you are looking for the best mortgage for your financial capacity, I can refer you to a qualified mortgage broker who can find the best rates. I encourage you to visit my website for a extensive list of properties, prices, and areas. Together we can meet the challenges you are facing in your home purchase.