FRASER VALLEY

New listings abound; tremendous selection; prices stable

The Fraser Valley residential market turned into a home buyer’s dreamland as  January’s new listings spiked nearly 170% from the preceding December. With 3,432 new listings recorded in the first month of the year, the Valley’s available inventory reached a total of 7,251 homes across all property types, a 10-year seasonal high, 54 % over the 10-year average. The listing spree has been awaited for months as Valley sales have been slow to recover to normal levels following the last three year of high interest rates following the Covid pandemic. The plentiful inventory along with further interest rate cuts by the Bank of Canada is positive signal that market confidence has been restored, with a home sales uptick expected to follow. While still sluggish, the 818 sales recorded in January was down 18% from December, marking some hesitancy still remains on the buyers side. Inventory had dwindled with fewer listings while many potential buyers chose to remain on the sidelines while waiting for borrowing costs to come down. This past January has seen both those impediments to purchases alleviated, setting the conditions for a rise in home sales to follow. On January 29, the Bank of Canada announced its latest rate cut, bringing the key policy rate down by 25 basis points to 3%, a substantial difference from the 5% high two years ago. This should bring variable rate mortgages into an attractive range in the ensuing months. And with Canada’s inflation rate now at 1.8% -- an actual dip below the target of 2% aimed at by the BoC during its inflation-fighting high interest regime – commercial fixed mortgage rates have also dropped, with more buyers considering this option in the current market. Rate Hub notes three year fixed rate mortgages currently as low a 4.4%. Prospective buyers who have been waiting to purchase in the Fraser Valley should consider the current conditions as opportune. Vallery prices are stable at present, and the abundance of supply will moderate price increases from an anticipated rise in demand. At the end of January, the combined benchmark price for a residential property in the Fraser Valley was 964,800, down 0.03% from the preceding month.

My monthly selection of comparative benchmark prices in the Fraser Valley is set out in the section below. Please use these comparisons as guide to current market activity and prices in different Valley neighbourhoods. Each overall benchmark is situated in the middle of the closest price on each side of the average. From the extremities shown for each average, you can get an idea of the range of prices making up the average. However, if you wish to look at specific prices in a neighbourhood, please don’t hesitate to call me. And if you are thinking about selling your home, I can prepare a Customised Market Analysis for your property and advise you on the optimal listing price in the current market conditions. Last month, newly listed single family homes sold on average within 52 days on the market; townhouses, on average, within 38 days; and condominiums on an average of 42 days.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of January was $1,482,400, an increase of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,856,700 and Mission at $1,025,000. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,482,500, a decrease of 0.7% from the preceding month; Cloverdale at $1,500,900, an increase of 1.0% from the preceding month; and Surrey $1,510,800, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $1,415,300, no change from the preceding month; Abbotsford at $1,207,400, a decrease of 1.0% from the preceding month; Mission at $1,025,000, an increase of 0.2% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of January was $826,000, a decrease of 0.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $934,600 and Abbotsford at $653,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $827,500, a decrease of 0.3% from the preceding month; Cloverdale at $837,100, a decrease of 1.2% from the preceding month; and Langley at $864,600, 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 $781,300, a decrease of 0.4% from the preceding month; Mission at $685,900, an increase of 0.4% from the preceding month; and Abbotsford at $653,700, a decrease of 0.1% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of January was $534,600, an increase of 0.1% from the preceding month. The extremities of this average were Langley at $603,900 and Mission at $457,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $562,700, a decrease of 0.6% from the preceding month; North Delta at $567,900, an  increase of 1.5% from the preceding month; and Cloverdale at $595,700, an increase 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 $480,300, an increase of 0.3% from the preceding month; Abbotsford at $440,900, an increase of 1.1% from the preceding month; and Mission at $457,400, a decrease of 0.1 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.