FRASER VALLEY

New listings spur Valley sales; upward price pressure continues

Fraser Valley property sales remained strong in March as the seasonally high sales activity continued to exert upward price pressure. While the Valley’s new listings continued to rise for the third consecutive month, home sales were spurred on by the month’s refreshing in the selection of homes available to buyers. March’s new Valley listings reached a total of 4,580, 24% higher than the number of newly listed homes in the preceding month. This brought the total active inventory of Valley homes at the end of March to 4,699, and while this ample selection was 24% higher than February’s inventory, and welcomed by homebuyers, it was nonetheless a decrease of 6.2% from active listings one year ago. Fraser Valley housing demand remains high as the region continues to be one the most desirable for first time home buyers, both singles and young families. Affordability remains the persistent problem for many as the Valley’s prices continue to climb. While some moderating effect on the upward price pressure is expected from the Bank of Canada’s incremental increases in its key policy rate for the rest of this year, the effect of variable rate mortgages is being seen in commercial bank mortgage rates now. For many fixed-rate mortgage holders, the interest rate increases may not be seen until later in the year. In either scenario, rate increases alone will likely not be enough to reduce the price increases that continue as a function of supply and demand. The federal government’s budget today promised increased housing supply for the country, but there will have to be substantial new building to begin reducing the market-driven price rises, and to move toward a more balanced market.    

The combined benchmark price for residential property in the Fraser Valley at the end of March was $1,372,100, a 4.2% increase from the preceding month. Valley homes are now slightly above (or almost at par for practical purposes) the average of Metro Vancouver home prices – an notable price phenomenon that has seen Valley prices rise more quickly than in Metro Vancouver during the pandemic period of the past two years. The upward trend in Valley home demand is likely to continue so I am recommending to prospective Fraser Valley homebuyers not to wait for price declines based on interest rate increases. The federal monetary policy is required to slow the inflation rate in Canada’s post pandemic economic recovery, but the demand for housing is so great that prices real estate prices will no doubt continue upwards for the foreseeable future. Please consult my monthly selection below of benchmark prices at the end of March for each property type across different geographical  areas of the Fraser Valley. These comparisons will provide guide for your home buying budget. However, remember that benchmarks are simply averages. I will be happy to provide specific details for any property you may be interested in. And if you art considering listing, I can provide you with a Customized Market Analysis for you property to help you list your property at an optimal price in this active market.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of March was $1,726,900 an increase of 3.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $2,117,100 and Mission at $1,285,200. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $1,768,600, an increase of 2.5% from the preceding month;  Surrey at $1,784,100, an increase of 5.3% from the preceding month; and Cloverdale at $1,869,200, an increase of 3.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,722,600 an increase of 4.4% from the preceding month; North Delta at $1,586,100, an increase of 3.2% from the preceding month; and Abbotsford at $1,522,500, an increase of 1.3% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of March was $886,400, an increase of 5.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,061,300 and Mission at $692,400. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $901,800 an increase of 4.6% from the preceding month; Surrey at $924,300, an increase of 5.7% from the preceding month; and Cloverdale at $968,600, an increase of 4.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $877,600,  an increase of 5.6% from the preceding month; North Surrey at $873,000, an increase of 10.1% from the preceding month; and Abbotsford at $732,100, an increase of 7.0% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of March was $643,000, an increase of 4.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $703,100 and Mission at $4501,600. The three municipalities on the higher side of the average: Surrey at $567,500, an increase of 5.5% from the preceding month; Cloverdale at $671,500, an increase of 4.4% from the preceding month; and South Surrey/White Rock at $703,100, an increase of 5.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $599,800, an increase of 3.3% from the preceding month; North Delta at $593,500, an increase of 4.0% from the preceding month; and North Delta $536,900, an increase of 5.7% from the preceding month. 

 

Let me help

 

These are challenging times for many homebuyers and homeowners. With the Bank of Canada interest rate now rising, you may need to adjust your financial strategy for your home purchase.  Variable rate mortgages will rise with each incremental increase in the central bank’s key rate, and fixed rate mortgages will likely have higher rate when they are renewed. If you need help in managing your home ownership plans, I can help. I have formal education at the post-graduate level in business along with years of experience in both banking and real estate, and 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.