FRASER VALLEY

Home sales, prices continue to decline; excellent purchase opportunities

While inflation fighting measures continue with rising mortgage interest rates, Fraser Valley home sales declined again in July. The total number of sales at the end of the month reached 993, a decrease of 22.5% from the preceding month, and 50.5% drop from the same period one year earlier. The continuing decline is evidence that the Bank of Canada’s schedule of policy rate increases is working to cool the housing market after its lengthy run of low-interest fuelled purchasing during the pandemic period. With the central bank’s key rate now at 2.25% following its latest hike of 1.0% last month, the Fraser Valley’s residential market has seen a drop in sales transactions for each of the last four consecutive months. New listings also declined month over month, with July’s totalling 2,385, a 28.4% drop from new listings recorded in June. However, it should be noted that the  decline in the rate of new listings from the same period one year ago was 1.9%, an indicator of the rebalancing of the market in the current post covid period. The available inventory at the end of July was 6,413 across all property types, an increase of 30.9% over the July stock one year ago. This supply provides an excellent selection of homes for prospective buyers and newly listed properties are still selling quickly across the Valley. During July, a single family detached home sold on average within 24 days on the market; townhouses within an average of 19 days; and condominiums on average within 21 days. Along with the slowing demand, prices have also continued to drop, providing many excellent opportunities for buyers at this time.

The combined benchmark price for a Fraser Valley residential property at the end of July was $1,091,800, a drop of 3.2% from the preceding month. For a month-over-month comparison of benchmark prices for each property type, look at the selection of benchmarks in the categories below. While you will see average one month decreases of 2.0% to 3.5% across each property category, it is worth noting that the overall benchmark for the Valley is still over 18% higher than one year ago, a good indicator of the long-term value of a Valley home. The benchmarks selected below are based on the average price for the property type across the Valley, with a cluster of prices on both sides of the average to serve as a guide to different geographical areas. It is also important to note the extremities making up the average since average prices may conceal considerable differences in specific actual prices. If you would like more detailed information for homes for sale in any particular area, please don’t hesitate to call me. I can also advise anyone who is thinking about selling on the optimal price to list your property in this current market, and can prepare a customized market analysis for your home with comparable homes sold in area. I am happy to assist you with whatever real estate questions you may have.       

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of July was $1,594,400, a decrease of 3.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $2,011,800 and Mission at $1,073,600. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,635,900, a decrease of 3.3% from the preceding month; Surrey at $1,642,000, a decrease of 3.0% from the preceding month; and Langley at $1,720,700, a decrease of 3.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,576,300, a decrease of 4.0% from the preceding month; North Delta at $1,412,500, a decrease of 7.1% from the preceding month; and Abbotsford at $1,313,700, a decrease of 4.3% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of July was $876,500, a decrease of 2.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $960,900 and Abbotsford at $746,600. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $925,300, a decrease of 0.9% from the preceding month; North Delta at $942,000, a decrease of 3.2% from the preceding month; and South Surrey/White Rock at $960,900, a decrease of 2.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $875,100, a decrease of 1.8% from the preceding month; Cloverdale at $853,300, a decrease of 3.6% from the preceding month; and North Surrey  at $787,300, an increase of 1.3% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of July was $553,400, a decrease of 2.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $620,100 and Abbotsford at $471,600. The three municipalities closest on the higher side of the average were: Cloverdale at $564,600, a decrease of 2.3% from the preceding month; Surrey at $569,300, a decrease of 3.7% from the preceding month; and North Delta at $593,400, a decrease of 2.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $499,100, a decrease of 2.9% from the preceding month; Mission at $494,600, an increase of 0.1% from the preceding month; and Abbotsford at $471,600, a decrease of 2.5% from the preceding month. 

 

Let me help

 

These are challenging times for many home buyers and homeowners. With Bank of Canada interest rates now rising, 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.