FRASER VALLEY

Buyer’s market with decade-high supply; economic uncertainty slows sales  

Fraser Valley home sales in March inched higher for the third consecutive month, 12.6% above the preceding February, but remained substantially down from historical averages, at 26% below this period last year and 50% below the 10-year average. At the same time, new listings last month increased 22% from February with 3,800 homes, boosting the Valley’s overall inventory at the end of March to a robust 9,219 homes across all property types, the highest level in a decade – 49% above the same time last year and 59% above the 10 year average. This paradoxical situation has sellers eager to enter the market while prospective buyers are holding back in what is technically a buyer’s market with a sales-to-active listing ratio of 11%. Overall prices are stable, and while such a large inventory would normally provide more negotiating leverage for buyers, sales have not yet risen to the usual activity level seen in the spring. The broad consensus among market analysts is that this atypical market behaviour is largely due to economic uncertainty arising from the global trade war started by outsized U.S. trade tariffs. In addition, as Canadians approach a federal election on April 28, many people are waiting for clear public policies that will affect our national economic outlook. Residential market watchers will also be attentive to today’s policy rate announcement by the Bank of Canada. At the time of writing this newsletter, the BoC’s key policy rate underpinning commercial mortgages was 2.75%, last reduced by 25 basis points in March. If the central bank should respond to a slowing economy with another rate cut, it would further incentivise home purchases with lower mortgage rates following. In any event, prospective home buyers should not ignore mortgage rates currently as low as 4.0% for variable and slightly higher for fixed rates. Fraser Valley home prices are generally still lower than comparable properties in Metro Vancouver making for a good long-term investment. At the end of March, the combined benchmark price for a Fraser Valley residential property was 974,400, a 0.4% increase from the preceding month.

In the section below, I have prepared a guide to benchmark prices in different areas of the Fraser Valley. Each selected benchmark price has the three closest average prices on each side of the benchmark average. This will allow you quickly check prices for comparable properties in different areas. However, remember that benchmarks are averages. With a broad range of prices making up the average, you may find a an actual price is closer to your desired budget. Please contact me if you are interested in any particular area. I can provide you with the latest information on new listings. And if you are interested in selling your home, I can prepare a Customized Market Analysis for your property and advise you on the optimal asking price in the current market conditions. Last month, the average length of time on the market in the Fraser Valley for single family detached home was 31 days; townhouses 27 days; and condominiums 33 days. Please don’t hesitate to call, I love to help my clients in any way I can.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of March was $1,505,500, an increase of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,904,300 and Mission at $1,064,400. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,506,400, an increase of 0.2% from the preceding month; Cloverdale at $1,525,400, an increase of 0.3% from the preceding month; and Surrey at $1,536,900, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $1,393,000, a decrease of 1.7% from the preceding month; Abbotsford at $1,225,500, an increase of 0.9% from the preceding month; Mission at $1,06,400, a decrease of 0.2% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of March was $833,700, an increase of 0.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $946,400 and Abbotsford at $656,100. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $842,100, an increase of 0.2% from the preceding month; Surrey at $843,600, an increase of 1.2% from the preceding month; and Langley at $865,100, a decrease of 0.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $817,600, a decrease of 1.2%% from the preceding month; Abbotsford at $656,100, an increase of 0.3% from the preceding month; and Mission at $668,500, an increase of 0.6% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of March was $540.900, an increase of 0.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $626,000 and Abbotsford at $443,700. The three municipalities closest to the benchmark on the higher side of the average were Surrey at $552.600, an increase of 1.2% from the preceding month; North Delta at $554,500, an increase of 1.1% from the preceding month; and Cloverdale at $592,700, an increase of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $479,100, a decrease of 0.3% from the preceding month; Mission at $456,800, a decrease of 0.6% from the preceding month; and Abbotsford at $443,700, a decrease of1.0% 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.