FRASER VALLEY

Mid-summer sales decline significantly; prices still inch upwards

Home sales across the Fraser Valley in July fell off by close to 30% from the preceding month after successive monthly increases since the beginning of the year. However, July’s sales of 1,368 were still almost 38% higher than in the same month last year. While the current decline is significant, it is too early to identify a trend and the drop may be largely attributable to typical mid-summer slow-downs when many people are on vacation. Nonetheless, market cooling has been the objective of the Bank of Canada’s rising interest rates since last year. Although sales volumes did resurge after an early decline, the central bank’s high policy rate regime has been expected to eventually induce a home purchasing decline when the higher rates gained full traction in the economy. Recent news that Canada’s unemployment rate has now risen to 5.5% may be another sign the country’s overall economy is finally slowing with high interest rates. While Fraser Valley home prices across all property types continued to increase in July, some moderation in the rate of increase is now beginning to appear. July’s new listings of 2,855 homes was a decline of 16.6% from the previous month, and while 19.7% higher than the same month last year, still on par for the ten year average. Inventory levels in the Valley still offer a good selection with a total supply of 6,199 homes listed at the end of July, an increase of 4.3% over June, but this figure could be significantly improved to reach past peak levels. A decline in demand can impact prices if sustained for a long enough period, but the current ongoing prices rises have been a function mainly of insufficient supply to meet the high demand. However, with the Bank of Canada’s policy rate now at 5.5%, its highest level in two decades, prices will be drawing more attention.  At the end of July, the combined benchmark price for a residential property in the Fraser Valley inched up again, reaching $1,046,700, a 0.5% increase from the preceding month.

In my monthly selection below of benchmark price comparisons in different areas of the Fraser Valley, you will be able to see month-over-month prices changes for each property type. The selected benchmarks are those closest to the overall benchmark price on each side of the average. The extremities of each average are provided so you can see the range of prices making up the average. Each price also has its one-month change, an typical indicator of the recent market activity in the residential area. This information has been assembled to serve as a general guide for both home buyers and sellers. However, keep in mind that benchmarks are simply averages. Specific home prices in any neighborhood can vary significantly and can match your budget more precisely. Please call me for any further details where you are interested in buying or selling. For prospective buyers, I can provide the most up-to-date information on new listings. And if you are thinking of selling, I can develop a Customized Market Analysis for your property, and advise you on the optimal listing price in the current market. Please feel free to call me with any questions. I am always happy to help my clients in any way I can.        

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of July was $1,543,300, an increase of 1.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,994,000 and Mission at $1,056,000. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,566,400, an increase of 1.4% from the preceding month; Surrey at $1,581,700, an increase of 1.4% from the preceding month; and Langley at $1,630,800, an increase of 1.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,530,600, an increase of 0.3% from the preceding month; North Delta at $1,428,900, no change from the preceding month; and Abbotsford at $1,246,800, an increase of 0.1% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of July was $850,300, an increase of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $877,100 and Abbotsford at $645,800. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $876.900, an increase of 0.7% from the preceding month; Cloverdale at $877,100, a decrease of 0.1% from the preceding month; and South Surrey/White Rock at $972,900, an increase of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $843,300, an increase of 1.0% from the preceding month; North Surrey at $793,000, an increase of 0.4% from the preceding month; and Mission at $672,200, an increase of 1.5% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of July was $555,500, an increase of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $636,700 and Abbotsford at $449,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $580,600, an increase of 2.0% from the preceding month; North Delta at $601,400, an increase of 2.2% from the preceding month; and Langley at $612,900, an increase of 1.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $506,600, a decrease of 0.4% from the preceding month; Mission at $4508,500, an increase of 1.8% from the preceding month; and Abbotsford at $449,700, an increase of 2.7% 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.