FRASER VALLEY

Sales slow but remain steady; abundant supply with prices declining

Dipping negligibly by 0.4% from its previous upward trend, the Fraser Valley’s slight sales decline in July was a mere five transactions below the 1,195 recorded in June. In a broader context, July’s sales, while slow, were down only 3.0% compared with the same period one year ago. More significantly, on a 10-year average the Valley’s sales were down by 23%, an better indicator of buyer hesitancy in a season when prospective home shoppers are normally more active. The lingering economic uncertainty from international trade tariffs initiated by the United States earlier this year remains the dominant psychological factor producing caution among home buyers. Even with  mortgage rates in the 4.0% range for qualified buyers, Canada’s unemployment has risen and job security threatened in the current economic climate. The Bank of Canada held its key policy rate cautiously at 2.75% for the third consecutive  announcement at the end of July. At the same time, the central bank noted the Canadian economy’s resiliency so far and expects Consumer Price inflation to remain near 2.0% for the medium term.  The next BoC rate announcement is scheduled for September 17. In the meantime, the Fraser Valley remains a buyer’s market with an abundant inventory and declining prices across all property types. Despite a dip in new listings to 3,453 in July, down 4.5% from the preceding month, the Valley’s supply of 10,650 available homes at the end of the month was close to 50% above the 10-year seasonal average. While many buyers remain on the sidelines, newly listed homes are selling relatively quickly. During July, the average length of time to sell a single family detached home, or a condominium, was 38 days; for townhouses it was 35 days. Declining prices also make for excellent purchase opportunities at this time. At the end of July, the combined benchmark price for residential property in the Fraser Valley was $944,800, a 0.7% decline from the preceding month.

My monthly selection below of comparative benchmark prices in the Fraser Valley offers a guide to home shoppers in different municipal areas. The month-over month price changes typically reflect relative sales activity in an area. For each property type, the overall benchmark price has a cluster of the three closest prices on each side of the average. You can also use the extremities provided for each average to see the range of prices making up the average. Benchmarks are averages for properties with comparable feature so much of the price difference is reflective of the location of the property. Remember that there may be actual prices concealed in an average are more attractive to your budget, so please feel free to call me for the latest information on listings in any neighbourhood of your choice.  And if you are thinking of listing your home for sale, I can prepare a Customized Market Analysis of your property and advise you on the optimal listing price in the current market conditions. Please don’t hesitate to call me. I love 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 $1,451,100, a decrease of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,837,300 and Mission at $1,033,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,468,200, a decrease of 0.8% from the preceding month; Langley at $1,598,600, a decrease of 0.1 from the preceding month; and South Surrey/White Rock at $1,837,300 a decrease of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,435,599, a decrease of 0.3% from the preceding month; North Surrey at $1,435,300, a decrease of 0.9% from the preceding month; North Delta at $1,333,600, an increase of 0.8% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of July was $814,900, a decrease of 1.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $928,200 and Abbotsford at $653,400. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $821,500, a decrease of 2.4% from the preceding month; Langley at $852,300, a decrease of 0.9% from the preceding month; and South Surrey/White Rock at $928,200, a decrease of 0.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $809,300, a decrease of 1.8%% from the preceding month; North Surrey at $750,800, a decrease of 1.5% from the preceding month; and Mission at $663,000, an increase of 0.5% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of July was $519,300 a decrease of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $584,400 and Abbotsford at $424,400. The three municipalities closest to the benchmark on the higher side of the average were Surrey at $547,400, a decrease of 0.4% from the preceding month; North Delta at $555,800, a decrease of 1.4% from the preceding month; and Cloverdale at $580,700, an increase of 1.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $458,200, a decrease of 1.1% from the preceding month; Mission at $451,500, a decrease of 2.6% from the preceding month; and Abbotsford at $424,400, a decrease of 3.9% 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.