FRASER VALLEY

Fraser Valley springs back to life; sales pick up, big jump in new listings

Vital signs still intact, the Fraser Valley’s residential market suddenly woke up in January. After a persistent near-comatose state for the last half of 2023, the Valley’s real estate activity sprang back to life in the first month of 2024 with increases of 12% in sales and 150% in new listings over the preceding December. The 938 sales total recorded in January was a welcome sign of life returning to the residential region especially popular with young families and first-time home buyers. But it was the 2,268 new listings that represented the biggest and most exciting boost to the Valley’s market recovery. The surge in supply was the biggest month-over-month percentage increase in new listings in the past five years. After the market’s lengthy dormancy last year, prospective home buyers will want to check out the growing inventory, which reached close to 5,000 homes available at the end of January, an increase of 18% over the same month last year. Seeing activity return to residential region provided a timely sign of optimism for potential home buyers. With the Bank of Canada’s last policy rate announcement at the end of January holding steady at 5.0%, where it has been since last July,  there is no doubt considerable pent-up demand by financially sidelined buyers waiting for widely forecasted interest rate cuts later this year. However, the current rise in supply will need to continue as spring is just around the corner and normally brings out more buyers. A spike in demand could quickly reverse the downward price trend seen in Valley benchmarks for the past six months. While the overall market conditions can be described as balanced at present, townhouses and condominiums remain in a sellers’ market position with a sales-to-listings ratio of 34% and 27% respectively, and detached homes are on the cusp of sellers’ territory with the ratio of 19%. (A ratio of 20% or more would also move detached homes in a sellers’ market at this time.) Nonetheless, prices are still relatively attractive at the present time. At the end of January, the composite benchmark price for residential property in the Fraser Valley was $985,800, a decrease of 0.3% from the preceding month.    

In my selection of comparative benchmark prices below, you will find a useful guide to similar properties in different municipalities in the Fraser Valley. For each property type there is an overall benchmark which is then followed by cluster of the three closest prices above and below the benchmark average. The extremities of each average provides you with the range of individual prices making up the average, and here you may gauge where a home may fit your financial budget. The month-over-month price changes shown will also give you an idea of the current level of market activity which typically affects these fluctuations. If you would like more information on a home purchase in any neighbourhood, I will be happy to provide you with the most up-to-date data. And if you are thinking about listing your home for sale, I can prepare a Customised Market Analysis for your property and advise you on the optimal listing price in the current market. Please don’t hesitate to call.  I love helping my clients in any way I can.   

 

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of January was $1,466,100, a decrease of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,885,900 and Mission at $986,700. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,467,300, an increase of 0.4% from the preceding month; Surrey at $1,511,300, an increase of 0.1% from the preceding month; and Langley at $1,565.400, a decrease of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,453,500, an increase 0.3%  from the preceding month; North Delta at $1,350,700, an increase of 0.3% from the preceding month; and Abbotsford at $1,443,400, a decrease of 0.3% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of January was $825,600, a decrease of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $947,3000 and Abbotsford at $644,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $831,400, an increase of 0.9% from the preceding month; Cloverdale at $836,300, a decrease of 0.9% from the preceding month; and Langley at $849,800, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $756,600, an increase of 2.5% from the preceding month; Mission at $667,500, a decrease of 0.4% from the preceding month; and  at $670,500, a decrease of 0.4% from the preceding month.

 

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of January was $539,700, an increase of 0.4% from the preceding month. The extremities of this average were Cloverdale at $611,300 and Abbotsford at $443,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $559,000, an increase of 1.0% from the preceding month; North Delta at $573,400, no change from the preceding month; and Langley at $696,700, an increase of 0.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $495,900, an increase of 2.1% from the preceding month; Abbotsford at $443,400, a decrease of 0.7% from the preceding month; and Mission at $450,900, a decrease of 0.3% 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.