FRASER VALLEY

Sales slow but steadily rising; huge supply; price declines create great buyer opportunities  

Fraser Valley homes sales continued their slow upward climb last month, rising 1.6% over May for a June total of 1,195. And while June’s new listings saw a 10% decline from the preceding month, an impressive addition of 3,618 homes pushed the Valley’s inventory up by 2.0% at the end of June, close to 11,000 available homes, 30% higher than one year ago. The huge selection, however, has not yet incentivized many potential buyers who remain reluctant to move from the sidelines during this current period of economic uncertainty. Prospective buyers are also waiting for the Bank of Canada’s next policy rate announcement on July 30. While the central bank has forecast another rate cut from the current 2.75% before the end of this year, a growing number of economists believe there will be small reduction at the end of the month. While other sectors of the economy are shifting gears to deal with the pressures of international trade tariffs, the Fraser Valley’s residential market continues as a buyers’ market affording some room for negotiations at the current time. A relatively stable market, within a single percentage point in its sales-to-listings ratio for a technically balanced definition, it offers an abundant selection for home shoppers in all property categories. Home prices are also responding, absent the normal demand at this time of year, with price declines noted across all areas of the Valley. Notable price drops in the last month were found in South Surrey/White Rock with a 2.3% decline for detached homes; 2.2% decline in townhouses; and a 2.9% decline in condominiums. Other significant price declines included detached homes in Cloverdale with a 3.6% drop; and townhouses in North Delta with a 5.1% drop. At the end of June, the combined benchmark price for a residential property in the Fraser Valley was $951,500, a 1.2% decline from the preceding month.           

In the section below, my monthly selection of comparable homes in different areas of the Fraser Valley provides a benchmark price comparison as shopping guide. For each property type you will find an overall benchmark average with a cluster of the three closest prices on the upper and lower sides of the benchmark. By noting the extremities of each average, you will glean an idea of the range of prices making up the average. The month-over-month price fluctuations typically represent the relative market activity in an area. It is important to remember that benchmarks are averages, so the actual specific asking price of a home in a neighbourhood of your interest may be attractive to your budget. Please call me if you would like the most up-to-date listing information for any area. And if you are interested in listing your home for sale, I can prepare a Customized Market Analysis for your property and advise you on the optimal asking price in the current market conditions. During the month of June, the average length of time number of days for a single family detached home to remain on the market before selling was 35 days; for condominiums it was an average of 39 days; and townhouses averaged 30 days.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of June was $1,458,600, a decrease of 1.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,846,800 and Mission at $1,026,700. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,462,500, a decrease of 3.6% from the preceding month; Langley at $1,600,800, a decrease of 1.9% from the preceding month; and Surrey at $1,480,200, a decrease of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,447,600, a decrease of 0.3% from the preceding month; Abbotsford at $1,190,600, a decrease of 1.0% from the preceding month; Mission at $1,206,700, an increase of 0.7% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of May was $921,900, a decrease of 5.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $935,000 and Abbotsford at $655,300. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $841,500, a decrease of 0.6% from the preceding month; Langley at $859,700, a decrease of 0.5% from the preceding month; and North Delta at $921,900, a decrease of 5.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $824,200, a decrease of 0.6%% from the preceding month; North Surrey at $762,300, a decrease of 0.6% from the preceding month; and Mission at $659,600, a decrease of 2.4% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of May was $526,500, a decrease of 1.2% from the preceding month. The extremities of this average were Langley at $599,800 and Abbotsford at $441,600. The three municipalities closest to the benchmark on the higher side of the average were Surrey at $547,800, a decrease of 1.1% from the preceding month; North Delta at $558,000, a decrease of 1.4% from the preceding month; and South Cloverdale at $575,0000, a decrease of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $463,400, a decrease of 1.6% from the preceding month; Mission at $453,200, an increase of 1.1% from the preceding month; and Abbotsford at $441,600, an increase of 1.5% 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.