FRASER VALLEY
Fraser Valley sees price declines; total available inventory is up.
Home sales continued to decline for the third consecutive month as the Fraser Valley residential market shows signs of rebalancing under the current regime of rising interest rates in Canada. The Valley’s sales for the month of June decreased by 5.8% from the previous month, reaching a total of 1,281. This was also a decline of 43% from sales in the same period one year ago. Many prospective buyers are now facing the challenges in mortgage qualification as commercial banks raise their lending rates with each Bank of Canada (BoC) key rate increase. However, the BoC’s objective of slowing the hot pace of home buying over the past two years of pandemic-era low interest rates appears to taking effect. The rapid escalation of home prices seen before the interest rates increases has now begun to slow down, with benchmark prices in all property types showing declines in June. New listings also dropped in June, down 8.2% from May. June’s total of 332 new listings, nonetheless, was an increase of 7.2% over June one year ago, and brought the total active inventory for the Fraser Valley to 6,474, up 4.7% from May and 18.3% over one year ago. This provides an good selection for home buyers at this time and current price drops offer some excellent buying opportunities. Last month’s drop in the rate of new listings may be linked to prospective sellers holding on their properties during this high inflation period. Payments on existing mortgages my be seen by some as benefitting from inflated dollar values at current time.The Bank of Canada is scheduled to announce its latest inflation-fighting rate increase today (July 13), which many economists have predicted will the as much 75 basis points, bringing the central bank’s policy rate to the 2.25%, the highest it has been in five years. (Our newsletter was produced ahead of today’s announcement.) Canada’s consumer index price shows inflation is now at 7.7%, up from 6.8% in April.
The combined benchmark price for a residential property in the Fraser Valley at the end of June was $1,128,400, a decrease of 3.3% from the preceding month. This is the second consecutive month showing a decline in the combined benchmark since the pandemic began in 2019. The combined benchmark monthly decline for the Fraser Valley in May was 2.1%. In this month’s selection of benchmark prices below, you will find current monthly declines in benchmarks in each property types for different areas of the Fraser Valley. Remember that benchmarks are average prices for comparable properties and serve as guide for home seekers as well as prospective sellers. The Fraser Valley real estate market remains very active during this current period of rebalancing prices. Last month, a newly listed single family detached home sold on average within 21 days on the market; townhouses remained on the market for an average of 19 days; and condominiums sold on average within 17 days. For more details on individual properties for sale in any particular area, or advice on setting the optimal asking price for listing a property under current market conditions, please give me a call. I keep a close eye on market activity and can provide you with up-to-date information on homes in the area of your choice.
Detached Homes
The benchmark price for a detached home in the Fraser Valley at the end of June was $1,653,000, a decrease of 3.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $2,053,100 and Mission at $1,123,000. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,691,600, a decrease of 1.4% from the preceding month; Surrey at $1,641,400, a decrease of 3.4% from the preceding month; and Langley at $1,789,600, a decrease of 2.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,641,400, a decrease of 5.5% from the preceding month; North Delta at $1,519,600, a decrease of 4.4% from the preceding month; and Langley at $1,789,600, a decrease of 2.7% from the preceding month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of June was $894,300, a decrease of 2.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $983,100 and Mission at $762,400. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $938,400, a decrease of 0.9% from the preceding month; North Delta at $972,500, a decrease of 5.1% from the preceding month; and South Surrey/White Rock at $983,100, a decrease of 4.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $891,200, a decrease of 3.4% from the preceding month; Cloverdale at $885,200, a decrease of 4.5% from the preceding month; and North Surrey at $514,200, an increase of 3.6% from the preceding month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of June was $568,700, a decrease of 2.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $640,100 and Abbotsford at $483,400. The three benchmarks closest on the higher side of the average were: Cloverdale at $577,800, a decrease of 7.6% from the preceding month; Surrey at $591,400, a decrease of 4.4% from the preceding month; and North Delta at $619,700, a decrease of 3.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $514,200, a decrease of 3.6% from the preceding month; Mission at $488,700, an increase of 1.1% from the preceding month; and Abbotsford at $483,400, a decrease of 1.4% 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.