FRASER VALLEY

Lower interest rates still not spurring sales; Valley combined benchmark price dips below $1-million

Fraser Valley residential sales continued their recent downward trend in July to 1,230 homes sold, a 6.3% decline from June and down by 26% on a 10-year seasonal average. Recent interest rate cuts by the Bank of Canada have so far failed to incentivise the expected increase in home sales even as mortgage rates have dropped In tandem with the central bank cuts. Major banks reduced their prime lending rate to 6.7% near the end of July, following the second consecutive cut to the Bank of Canada policy rate, now at 4.5%. While the rate cuts were welcome news to many sidelined prospective buyers due to the lengthy central bank policy rate of 5%, it appears more cuts will be needed to spur Valley sales which have traditionally seen robust activity during summer months. The situation will keep eyes focused on the Bank of Canada’s next scheduled rate announcement scheduled for September 4. It is widely thought that the Bank will make another cut of 25 percentage points lowering its key rate to 4.25%, with speculation there will be a another similar cut before the end of this year. Given the normal lag time to see the effect in lower mortgages, there is good reason to believe that sales will begin to increase this fall. In the meantime, the inventory of available homes in the Fraser Valley continues to grow substantially. New listing in July showed only a slight dip of less than 0.5% from June, reaching 3,412 and bringing the Valley’s available supply at the end of July to 8,731 homes across all property types, an increase of 5% from the preceding month and 26% above the 10-year seasonal average. With the combined inventory build up and purchase reticence, prices have slowly but steadily declining over the past few months. The combined benchmark price for a Fraser Valley residential property at the end of July dipped, for the first time since January 2024, slightly below the $1-million threshold to $999,100, a decline of 0.3% from the preceding month.    

You are invited to use my monthly guide in the section below with comparative benchmark prices for each property type in different areas of the Fraser Valley. For each overall benchmark, there is a cluster of the three closest average prices for comparable homes on each side of the benchmark. Each price shows its month over month price fluctuation, a general indication of the relative sales activity for the month. Note the extremities provided for each of the average prices as well, as this will give you an idea of the range of prices making up the average. There may be actual prices that are not apparent in the average. These may be a excellent purchase opportunities so if you are interested in exploring a particular neighbourhood, please don’t hesitate to give me a call. I can provide you with the most up to date information on new listings and asking prices. And if you are thinking of selling your home, I can prepare a Customized Market Analysis of your property and advise you on the optimal listing price in the current market conditions. Even in this slower than usual sales climate, Fraser Valley homes sold quite soon after their listing. Last month, single family detached homes were on the market for an average of 31 days; townhouses on average for 25 days; and condominiums for an average of 25 days.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of July was $1,529,600, an increase of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,980,500 and Mission at $1,048,900. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,563,800, a decrease of 0.2% from the preceding month; Langley at $1,635,100, a decrease of 0.1% from the preceding month; and South Surrey/White Rock at $1,980,500, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,521,900, a decrease 0.1% from the preceding month; North Surrey at $1,512,500, a decrease of 0.1% from the preceding month; and North Delta at $1,474,300, an increase of 1.4% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of July was $848,800, a decrease of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $969,500 and Abbotsford at $666,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $857,100, a decrease of 0.2 from the preceding month; Cloverdale at $858,200, a decrease of 0.2% from the preceding month; and Langley at $878,900, an increase of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $708,200, a decrease of 3.3% from the preceding month; Mission at $685,700, an increase of 1.5% from the preceding month; and Abbotsford at $666,700, no change from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of July was $551,000, no change from the preceding month. The extremities of this average were South Surrey/White Rock at $635,100 and Abbotsford at $448,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $572,200, a decrease of 0.2% from the preceding month; North Delta at $583,900, a decrease of 0.4% from the preceding month; and Cloverdale at $598,500, an increase 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 $497,400, a decrease of 0.2% from the preceding month; Mission at $466,700, an increase of 2.2% from the preceding month; and Abbotsford at $448,200, an increase 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.