FRASER VALLEY

Fraser Valley market flat; robust inventory; reduced prices await buyers

The Fraser Valley residential market activity remained flat in June, showing a slight increase with 1,147 sales for the month, a 2.3% increase over the preceding month. Similarly, new listings remained around the same level as the preceding month, although 9% down from the same period last year. However, the 3,303 homes added to the inventory last month did maintain a robust supply of available homes, with 10,377 active listings across all property types at the end of the month. Unlike the Metro Vancouver market that saw summer bringing out a spike in buyers, the Fraser Valley held many excellent opportunities for buyers, but with few takers. June’s sales-to-active listings ratio for the Valley was 11%, just within buyers’ market territory, but not sufficient to attract a serious uptake on opportune price negotiations at this time. The ample inventory selection is no doubt a factor in the buyer’s advantage at this time, and with the Valley’s continued monthly price declines, it may be the case some prospective buyers are waiting for even better prices in the event they are not feeling pressure to make a purchase. Prospective buyers may also want to consider the Bank of Canada’s policy rate announcement last week which held its key policy rate to 2.25%, where is has been since late last year. This means mortgages should remain in the 4.0% range, but with the conflict in the Persian Gulf heating up again, oil prices still threaten inflationary pressure on the economy. This could result in a rise in fixed term mortgage borrowing costs. But the Fraser Valley has long been a attractive market for young families and first-time home buyers, a market segment that is more price conscious than home owners looking to move up or withdraw equity in long-time residences. In any scenario, the Valley is currently an opportune place to find a home, and with slide in home prices seen for several months, it rates well in affordability as well. At the end of June, the combined benchmark price for residential property in the Fraser Valley$884,800, a 0.9% decline from the preceding month.

In my monthly guide below to comparative benchmark prices, you will find the overall benchmark for each property type across the Valley, with a cluster of the three closest benchmark prices on each side the overall average. Monthly price fluctuations typically reflect the area’s relative sales activity. Remember that benchmarks are averages. If you would like the most up-to-date price listings for any neighbourhood, please give me call.  And if you are considering listing your home for sale, I can prepare a Customized Market Analysis and advise you on the optimal listing price in the current market conditions. Across the Fraser Valley in June, the average number of days to sell a single-family detached home was 37 days, while for a townhome, it was 33 days. Condos took, on average, 38 days to sell.   

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of June was $1,350,200, a decrease of 1.2% from the preceding month. The range of the average extended from $1,699,300 in South Surrey/White Rock to $941,700 in Mission. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,354,500, a decrease of 1.7% from the preceding month; Langley at $1,494,800 a decrease of 1.8% from the preceding month; and South Surrey/White Rock at $1,696,300, a decrease of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $1,336,800, a decrease of 1.7% from the preceding month; North Surrey at $1,278,300, an increase of 0.6% from the preceding month; and North Delta at $1,232,700, an increase of 1.9% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of June was $764,100, a decrease of 0.7% from the preceding month. The range of this average extended from $868,600 in North Delta to $606,500 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $768,100, an increase of 0.3% from the preceding month; Langley at $813,200, a decrease of 0.5% from the preceding month; and South Surrey/White Rock at $853,400, a decrease of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $758,000, a decrease of 0.1% from the preceding month; North Surrey at $692,600, a decrease of 3.7% from the preceding month; and Abbotsford at $606,500, a decrease of 2.3% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of June was $476,400, a decrease of 1.5% from the preceding month. The range of the average was from $560,800 in South Surrey/White Rock to $390,100 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $481,900, a decrease of 1.3% from the preceding month; North Delta at $505,000, an increase of 0.5% from the preceding month; and Cloverdale at $518,600, a decrease of 3.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Mission at $422,900, a decrease of 0.8% from the preceding month; North Surrey at $416,400, an increase of 0.3% from the preceding month; and Abbottsford at $390,100, an increase of 1.1% 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.