High demand remains as sales dip again; some price declines

Mid-summer activity in the Fraser Valley’s housing market remains hot but with some cooling again this past June. The Valley’s 2,247 sales total last month was a 31% increase over the same period one year ago and 22% above the ten-year average. But the month-over-month decline seen in the last few months continued into June as sales showed a 24% decline from the preceding May. While demand is still high for Valley homes, the record-setting sales volumes reached each month since last fall may have possibly peaked. Last month was notably the first after a ten-month surge that did not break a historical record for Fraser Valley home sales. Prospective buyers can now see some relief from the frenetic bidding experienced in the extreme sellers’ market previously, and some price reductions as market activity begins to move to more normal levels. However, as low interest rates continue, demand remains high and new listings will be needed to ease the upward pressure on prices. While 3.108 new listings appeared in June, this was a decline of 21% from May’s new listings. The inventory of active Fraser Valley properties at the end of June totalled 5,474, down 7.0% from the preceding month, and 22.5% lower than the same period one year ago. Prospective sellers can take advantage of the current high demand by listing now for a summer sale. Across all property types listed, the length of time for sales was short: single-family detached homes were on the market for an average of 17 days; townhouses for an average of 12 days; and condominiums on average sold within 21 days. The combined benchmark price for all Valley properties at the end of June was $1,051,400, an increase of 0.7% from the preceding month.   

The composite benchmark price for a Fraser Valley home moved above the $1-million mark for the first time in April this year. At the end of June, the composite benchmark price in the Fraser Valley was $113,700 less than in Metro Vancouver. While many home buyers have chosen the Fraser Valley for its quality lifestyle in a semi-urban setting, the benchmark price comparison has also played a role in selecting a Valley home, particularly for first time home buyers and young families. The pandemic has also played a role in Valley housing demand, as many homeowners elected to migrate from more densely populated areas to the more spacious Fraser Valley properties. With the combined benchmark prices in both of the lower mainland’s major markets now over the psychological threshold of $1-million, I encourage clients to carefully examine the prices for specific property types. While the composite benchmark prices are averages for comparable properties, it is worth noting that for both townhouses and condominiums, the benchmark prices are still under $1-million. Below, I have a selection of benchmark prices for specific property types showing their one-month price change in different municipalities in the Fraser Valley. This will provide a guide for home shoppers to see where they may best locate for their budget and desired area. For a more detailed analysis please feel free to contact me for the most up-to-date information to assist you.      

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of June was $1,324,400, an increase of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,731,600 and Mission at $925,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,377,200, an increase of 1.1% from the preceding month; Cloverdale at $1,381,200, a decrease of 0.6% from the preceding month; and Langley at $1,383,000, an increase of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,311,100, an increase of 0.2% from the preceding month; North Delta at $1,198,400, an increase of 1.6% from the preceding month; and Abbottsford at $1,140,100, a decrease of 0.3% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of June was $678,400, an increase of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $810,000 and Abbotsford at $575,900. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $691,400, an increase of 1.6% from the preceding month; Surrey at $692,100, an increase of 1.0% from the preceding month; and Cloverdale at $732,600, an increase of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $665,400, a decrease of 1.5% from the preceding month; North Surrey at $643,300, an increase of 0.9% from the preceding month; and Mission at $579,400, an increase of 3.9% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of June was $493,500, an increase of 1.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $567,400 and Abbotsford at $378,100. Only two municipalities were on the higher side of the average: Cloverdale at $533,700, an increase of 0.4% from the preceding month; and South Surrey/White Rock at $567,400, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $466,600, an increase of 2.3% from the preceding month; Langley at $470,600, an increase of 2.5% from the preceding month; and North Surrey at $458,400, a decrease of 0.3% from the preceding month. 

 

I can help

 

Please do not hesitate to call me for whatever you need in Real Estate advice. I am always happy to provide you with detailed information on the property type and neighborhood you may be interested in. And if you are contemplating listing your property for sale, I can provide you with information on comparable homes sold in your area. In some cases, prospective sellers may want to do some renovations before listing. I can advise on what will make for the most optimal return on your investment. I can also refer you to reliable tradespeople who do quality work at reasonable rates.