FRASER VALLEY

Fraser Valley home sales up; prices rise while new listings lag

Fraser Valley home sales remained strong this past June and the available supply of homes increased slightly over the preceding month, while still down 8.2% from the same period one year ago. However, if prices are to be moderated with the current demand, the pace of new listings will have to increase. June’s sales totalled 1,935 across all property types, up 13.1% from May, and an increase of 51.1% over the same month last year. New listings last month came in at 3,424, a decrease of 3.1% from May, leaving a total active inventory of 5,944 home at the end of June. While this was a 6.9% increase over the preceding month, it was still 8.2% less than June one year ago. The Valley remains an attractive living area for young families and many first time home buyers, and with demand still outpacing supply, prices are continuing to rise, even in this high mortgage rate period. Last week’s announcement by the Bank of Canada of its 10th incremental increase in its policy rate since last summer has moved the benchmark rate up another 25 percentage points to 5.0%, the highest rate in over two decades. Although Canada’s Consumer Price Index inflation fell 3.4% in May, down from 8.1% last summer, home sales have seen a resurgence since the beginning of this year. During the early cooling effect of the central bank’s high interest regime on real estate markets there were significant price declines during the latter part of 2020, such that the Fraser Valley’s combined benchmark price had dropped below the $1-million mark which it surpassed at the height of the low interest rate sales period. The Fraser Valley’s combined benchmark price for all property types at the end of June this year was $1,040,900, a increase of 2.1% from the preceding month. However, this is still 7.4% lower than one year ago, and home shoppers appear to be taking advantage of this price decline despite current high mortgage borrowing costs.

 

In my monthly selection below, the comparative benchmark prices in different areas of the Fraser Valley serve as a guide to prices that are ranked nearest to the overall Valley benchmark for each property type. Each property type has three average prices clustered above and below the benchmark along with their month-over-month price change. These fluctuations may give you a picture of the relative recent transaction activity in a particular neighborhood, but it should be remembered that benchmarks are averages composed of a range of individual prices. By noting the extremities provided for each benchmark, you can gain a better insight in terms of particular home prices. If you are interested in an area, please feel free to call me. I can provide home shoppers with the most up-to-date information on homes in your area of choice. And if you are thinking of selling your home, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market. Across the Fraser Valley this past June, newly listed homes sold on average quite quickly. A single family detached home sold within 21 days; townhouses on average in 16 days; and condominiums on average within 22 days.

     

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of June was $1,526,200, an increase of 2.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,966,800 and Mission at $1,017,300. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,526,300, an increase of 3.7% from the preceding month; Cloverdale at $1,544,700, an increase of 2.1% from the preceding month; and Surrey at $1,550,400, an increase of 1.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $1,428,300, an increase of 3.2% from the preceding month; Abbotsford at $1,245,400, a decrease of 3.2% from the preceding month; and Mission at $1,017,300, a decrease of 1.6% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of June was $845.400, an increase of 2.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $970,700 and Abbotsford at $641,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $871,300, an increase of 2.5% from the preceding month; Cloverdale at $878,300, an increase of 2.8% from the preceding month; and South Surrey/White Rock at $970,700, an increase of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $840,3000, an increase of 2.4% from the preceding month; North Surrey at $790,300, an increase of 3.8% from the preceding month; and Mission at $662,400, an increase of 2.5% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of June was $552,200, an increase of 1.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $636,500 and Abbotsford at $437,900. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $588,800, an increase of 1.3% from the preceding month; Langley at $605,300, an increase of 3.6% from the preceding month; and Cloverdale at $629,400, a decrease 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 $508,600, an increase of 0.4% from the preceding month; Mission at $450 400, a decrease of 1.1% from the preceding month; and Abbotsford at $437,900, an increase of 2.8% 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.