Fraser Valley has hottest market in 100 years; new listings spur increased sales  

Fraser Valley real estate activity last month blew past its highest levels in 100 years. With the extreme demand for Valley properties, the blistering pace of home sales has been spurred on with record new listings in this sizzling sellers’ market. More than 3,300 sales were processed in March, 18% higher than the preceding month and pushing beyond the previous record set five years ago. New listings also rose steeply with a total of 5,087 in March, 56% more than the preceding month, and a 91% increase over the same period one year ago. March’s new listings set a new record for the month, surpassing by 14% the last record high in 2008. The spike in new listings was welcomed by prospective home buyers who have been trying to purchase in the Fraser Valley during several months of escalating prices amid declining supply. However, while the active inventory at the end of March was 5,012 properties, the pace of new listings is not keeping up with the increasing demand. Although the current inventory is 22% higher than in February, it is 18% below the same period one year ago. Without a substantial increase in new listings, the current sellers’ market will continue to see purchase offers often bid beyond listed prices. The anticipation of price escalation is driving up prices at an even faster rate, as buyers want to make purchases as quickly as possible. Nonetheless, the Fraser Valley still offers greater affordability overall compared with Metro Vancouver. At the end of March, the composite benchmark price for a Valley residence was $981,200, an increase of 4.9% from the preceding month, but still under the $1-million threshold surpassed in Metro Vancouver in January 2020.  

Much of the current residential sales boom in the Fraser Valley is driven by the desire to locate in more spacious surroundings at a more affordable price. While the Covid-19 pandemic has persuaded some homeowners to migrate from denser urban settings to the Valley’s suburban and semi-rural communities, the Fraser Valley is also the place where singles and young families often choose to start with their first home purchase. Below is my monthly comparison of property types clustered around the benchmark price in different geographical areas. By examining the month-over-month changes in the benchmark prices, you can gain an insight into the price trends in each area for the property type of your choice. However, it is important to remember that while benchmarks serve as guide for your budget, there can be significant price differences among properties with the same area. I am always happy to provide you with a more detailed market analysis to meet your specific purchase needs. And if you are interested in listing your home for sale, I can advise you on the optimal range fore your listing price in this current high demand market. Across the Fraser Valley last month, single family detached homes sold on average within 15 days; townhouses remained on the market for an average of 14 days; and condominiums for an average of 31 days.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of March was $1,237,900, an increase of 6.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,625,300 and Mission at $887,500. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,260,500, an increase of 5.9% from the preceding month; Langley at $1,279,600; an increase of 5.7% from the preceding month; and Cloverdale at $1,338,900, an increase of 7.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,213,200, an increase of 6.1% from the preceding month; North Delta at $1,134,000, an increase of 6.1% from the preceding month; and Abbotsford at $1,068,300, an increase of 6.0% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of March was $624,500, an increase of 4.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $744,300 and Mission at $503,100. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $635,500, an increase of 3.9% from the preceding month; Surrey at $638,500, an increase of 4.7% from the preceding month; and Cloverdale at $696,100, an increase of 5.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $613,700, an increase of 3.7% from the preceding month; North Surrey at $601,700, an increase of 3.2% from the preceding month; and Abbotsford at $515,000, an increase of 2.6% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of March was $465,400, an increase of 3.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $531,500 and Abbotsford at $354,100. Only two municipalities were on the higher side of the average: Cloverdale at $504.800, an increase of 3.0% from the preceding month; and South Surrey/White Rock at $531,500, an increase of 3.7 from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $456,000, an increase of 1.9% from the preceding month; North Surrey at $440,200, an increase of 1.7% from the preceding month; and Langley at $434,100, an increase of 4.5% from the preceding month. 

 

Let me help

 

By working hard for my clients, I stay abreast of the most recent events in the real estate market. This includes monitoring monthly price fluctuations for every property type. If you would like to chat about your needs, whether for selling or buying, I am happy to talk to you. I never pressure anyone, but I can give you honest and informed advice so you can make your best decisions. Please feel free to call.