FRASER VALLEY

Sales cool in seasonal and high interest climate; inventory replenishing

Home sales in  the Fraser Valley dipped to their lowest point in 10 years in January with 626 transactions. The slow start to 2023 was expected as a continuation of the downward trend which started with interest rate hikes commencing last spring. January’s sales total was a 12.6% decline from the preceding month, and 52.2% lower than the same period one year ago. The normal seasonal slow-down no doubt also played a role in January’s slump. However, many prospective home buyers remain on the side lines during the current period of higher mortgage rates as Canada’s inflation rate remains above 6%. The Bank of Canada’s latest key lending rate of 4.50%, set in January, aims to bring the inflation rate down quickly over the coming month. With an ease in mortgage lending, Valley home sales should recover in the spring. In the meantime, a rise in new listings in January signals buying opportunities are on the immediate horizon. January’s new listings increased 128.3% over the preceding month, delivering a total of 1,833 new listing to the Fraser Valley home market. This brought the Valley’s inventory to 4,118 at end of January and while still at a 40 year low, the recent surge was 77% over the same period one year ago. With more new listings expected in the coming months, prospective home buyers are encouraged to watch the Valley market activity closely over the next few months. Fraser Valley home prices have dropped to pre-pandemic averages and buyers can find excellent purchase prices during the current period.

The composite benchmark price for a Fraser Valley residential property at the end of January was $942,200, a decline of 1.4% from the preceding month, and 15.1% lower than the same period one year ago. Notably, this benchmark is again below  its counterpart in Metro Vancouver where it is substantially higher than the $1-million mark. The Fraser Valley remains a desirable region for young families and first time home buyers and Valley homes will remain valuable long term investments despite the current inflation driven price declines. Notable, in this regard, however, is the strong demand for condominiums which saw an average increase of 0.8% in the past month, with exceptionally large increases of 7.6% in South Surrey/White Rock and 2.7% in North Surrey.  In the selection of benchmarks below, you will find comparative average prices at the end January for each property type in different areas of the Fraser Valley. Note the extremities of each benchmark to see the range of prices making of the average. And remember that benchmark averages, while useful as a general guide, do not illustrate specific prices on individual properties that may be offered as opportune purchases. If you would like the most up-to-date market information in any area, please call me. And for anyone interested in listing their home for sale, I can provide a Customized Market Analysis for your property showing recent sales of comparable homes in your area, and can advise you on the optimal listing price for current market conditions. I am always happy to help my clients in any way, so please don’t hesitate to call for whatever your real estate need may be. I love helping my clients.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of  January was $1,357,800, a decrease of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,800,900 and Mission at $875,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,411,500, a decrease of 0.4% from the preceding month; Langley at $1,462,400, a decrease of 1.5% from the preceding month; and South Surrey/White Rock at $1,800,900, a decrease of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,350,800, a decrease of 1.3% from the preceding month; North Surrey at $1,342,700, a decrease of 1.4% from the preceding month; and North Delta at $1,226,900, a decrease of 2.6% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of January was $773,100, a decrease of 1.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $903,800 and Abbotsford at $625,500. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $779,100, a decrease of 1.3% from the preceding month; Cloverdale at $791,900, a decrease of 1.3% from the preceding month; and Langley at $800,600, a decrease 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 $686,900, a decrease of 3.7% from the preceding month; Mission at $633,400, a decrease of 0.9% from the preceding month; and Abbotsford at $618,100, a decrease of 1.2% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of January was $503,700, a decrease of 0.2% from the preceding month. The extremities of this average were Cloverdale at $558,200 and Abbotsford at $393,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $536,900, an increase of 3.1% from the preceding month; Langley at $549,400, a decrease of 3.2% from the preceding month; and North Delta at $550,400, an increase of 2.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $477,400, an increase of 2.7% from the preceding month; Mission at $437,700, a decrease of 1.1% from the preceding month; and Abbotsford at $393,100, a decrease of 2.8% 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.