FRASER VALLEY

Valley sales continue upwards; prices edging up  

Following a sharp uptick in sales in February, the Fraser Valley posted its second consecutive month of residential sales growth in March. While still below seasonal averages, the Valley’s market is showing positive signs of recovery after a lengthy period under inflation-related financial constraints. March sales reached a total of 1,550, nearly 73% higher than the preceding month and the first time in the last seven months that the sales volume has reached above the 1,000 mark. However, the Valley’s full recovery from the market’s slump since last spring still has a way to go. While a positive sign that vitality is returning, last months sales figure is close to 40% lower than one year ago, and nearly 25% below the ten-year average. The current signs of recovery suggest that market stability has returned after a year of rising mortgage interest rates. However, the next Bank of Canada rate announcement scheduled for today (April 12) will be an important signal in this regard. (This newsletter is produced before today’s announcement so be sure to watch today’s news.) While economists have widely predicted no further rate increase will occur, especially in light of recent bank failures in Europe and the USA, there is growing concern that Canada’s recent large spending budget along with currently high employment figures may push inflation upwards again, causing another rate increase by the central bank. For residential markets just beginning to recover, new listings are still lagging historical numbers for the season as sellers wait and watch price trends. While Fraser Valley new listings in March reached a total of 2,559, a significant 32% increase over the preceding month, they were still more than 44% lower than in the same period one year ago, and well below the 10-year average. The total available inventory of homes at the end of March was 3.5% below last year for the same month, with the consequence that price prices edging upwards at present, even in the climate of high mortgage rates. The combined benchmark price for a residential property in the Fraser Valley at the end of March was $965,100, a 2.0% increase over the preceding month. Market watchers should recall, however, that the Valley’s combined benchmark price moved above $1 million before Covid and is currently close to $180,000 below Metro’s Vancouver’s benchmark.

Please look at the selection of benchmark prices for homes in each property type in the Fraser Valley below. The selection is a guide to the most recent prices changes recorded at the end of March for comparable homes listed in different geographical areas of the Valley. Keeping in mind that benchmarks are averages, you can glean an insight into the range of prices composing each benchmark by noting the extremities of the averages as provided. Also included are the three closest prices on each side of the benchmark which can guide you in the terms of the neighborhood that may best suit your budget. For more detailed information, please don’t hesitate to call me. I can provide buyers with the most up to date listing prices of a home in the area of their choice. And if you are considering selling your home, I can produce a Customized Market Analysis for your property and recommend an optimal asking price in the current market. I love to help my clients. Please call me with any questions you may have.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of March was $1,390,600, an increase of 1.9% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,805,400 and Mission at $950,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,424,100, an increase of 0.4% from the preceding month; Cloverdale at $1,445,900, an increase of 3.4% from the preceding month; and Langley at $1,485,400, an increase of 1.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were:  North Surrey at $1,366,800, an increase of 0.7% from the preceding month; North Delta at $1,281,600, an increase of 3.1% from the preceding month; and Abbotsford at $1.93,800, an increase of 2.7% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of March was $794,400, an increase of 2.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $925,100 and Abbotsford at $608,200. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $796,400, a decrease of 0.6% from the preceding month; Cloverdale at $805.400, an increase of 2.8% from the preceding month; and Surrey at $811,800, an increase of 3.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $742,600, an increase of 5.0% from the preceding month; Mission at $628,200, a decrease of 0.5% from the preceding month; and Abbotsford at $608,200, an increase of 0.2% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of March was $521,800, an increase of 2.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $591,600 and Abbotsford at $414,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $542,400, an increase of 1.5% from the preceding month; North Delta at $551,400, an increase of 0.7% from the preceding month; and Langley at $565,300, an increase of 1.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $492,500, an increase of 1.7% from the preceding month; Mission at $418,100, a decrease of 4.0% from the preceding month; and Abbotsford at $414,600, an increase of 5.2% 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.