Home sales strong but further slowing seen in July; low inventory could push prices up

The Fraser Valley residential market showed another month of cooling activity this past July while still remaining a sellers’ market with above average demand for all property types. Total sales for the month declined by 11% from June and were also down 4.5% from the same month one year ago. However, the 2.006 sales transactions were still above the 10-year average by 15%, and a sellers’ market remains with steady demand in the Valley. While mid-summer often sees slower activity as families typically take vacations, the Fraser Valley continues to see many buyers this year who are showing an interest across all property types. The rapid escalation of prices that has been attributed largely to the county’s low mortgage interest rates held in place during the pandemic has also shown a welcome slowing by prospective buyers in the Valley in recent months. This month I would encourage prospective buyers to think about the distinct possibility of rising prices coming the Fraser Valley as a result of declining home inventories. July marks the fourth consecutive month that new listings have continued to decline in the Valley. July’s new listings were a decrease of 22% from new listings in the preceding month, and 31.5% lower than new listings for the same period one year ago. With the 2,431 new listings received in July the total inventory at the end of the month was 4,901, the lowest active inventory in the Fraser Valley in four decades. With demand remaining high, the supply factor may soon be seen in rising price levels. At present, there are some price declines to be found in specific properties as they drop from the previous extreme demand period that pushed prices upward, often above the asking price.    

The combined residential benchmark price for a Fraser Valley home at the end of July was 1,053,900, a 0.2% increase over the preceding month. In my monthly selection of benchmark price comparisons below, you will find for each property type a cluster of benchmarks around the overall benchmark for each property type. This will serve as a guide for home shoppers to see the month-over-month price changes in different geographical areas of the Fraser Valley. Please keep in mind that benchmarks are averages based on comparable homes in similar neighbourhoods. The extremities of these averages are also provided to better understand the range of prices in the benchmark average. This month you can find some areas where the benchmark price has decreased. For example, Cloverdale, Langley, North Delta and Abbotsford all show decreases for single family detached homes; and decreases in condominiums in Cloverdale, White Rock, Langley and Surrey. For prospective sellers, benchmark averages can give you a general idea of price levels for listing prices. However, I will be happy prepare a custom market analysis for your specific property and advise you on the optimal listing price in the current market. On average, properties listed for sale in the Fraser Valley sell quite quickly. In July, a single family detached home remained on the market for 26 days; townhouses for 15 days, and condominiums for 24 days.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of July was $1,319,200, a decrease of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,689,70000 and Mission at $929,600. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,376,500, a decrease of 0.3% from the preceding month; Langley at $1,377,000, a decrease of 0.4% from the preceding month; and Surrey at $1,384,300, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,312,500, an increase of 0.1% from the preceding month; Abbotsford at $1,136,100, a decrease of 0.4% from the preceding month; and North Delta at $1,191,600, a decrease of 0.6% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of July was $688,400, an increase of 1.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $809,700 and Abbotsford at $587,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $701,400, an increase of 0.5% from the preceding month; Langley at $706,100, an increase of 2.1% from the preceding month; and Cloverdale at $736,000, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $673,200, an increase of 1.2% from the preceding month; North Surrey at $666,000, an increase of 3.0% from the preceding month; and Mission at $598,300, an increase of 3.3% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of July was $494,000 an increase of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $559,300 and Abbotsford at $383,800. Only two municipalities were on the higher side of the average: Cloverdale at $530,400, a decrease of 0.5% from the preceding month; and South Surrey/White Rock at $559,300, a decrease of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $485,900, a decrease of 0.4% from the preceding month; North Surrey at $459,100, an increase of 0.2% from the preceding month; and Langley at $472,400, a decrease of 0.3% from the preceding month. 

 

I can help

 

By working hard for my clients, I stay abreast of the most recent events in the real estate market. This includes monitoring monthly price fluctuations for every property type. If you would like to chat about your needs, whether for selling or buying, I am happy to talk to you. I never pressure anyone, but I can give you honest and informed advice so you can make your best decisions. Please feel free to call.