FRASER VALLEY

Second consecutive monthly dip in sales; demand remains high for Valley homes

The Fraser Valley residential market saw its second consecutive month of cooling sales volume in May, decreasing slightly by 2.0% from the preceding month. April was the first month to show decreased sales after a lengthy run of nine months of rising sales a record period of pandemic period buying. The May sales dip is substantially lower than April’s 9.0% drop, and the current two-month downward direction may be welcomed by buyers who have been subjected to demand-driven purchase bidding for several months. However, the current demand for housing in the Valley remains historically high with a sales level 267% greater than the same period one year ago. Supply, therefore, will be a primary factor in continuing price increases, particularly as the summer season typically sees more active buyers. While May experienced a 22% decline in new listings from the preceding month, the overhang of new inventory from the previous three-month surge plus May’s 3,926 new listings has left the Valley with its second-highest volume of new listings ever, 78% higher than one year ago. Despite the modest two-month slowing in sales, however, the ongoing high demand for Valley homes will require more new listings to have a moderating effect on price rises. The total inventory of active listings in the Fraser Valley at the end of May was 3.0% lower than the preceding the month and 9.0% less than at the end of May one year ago. Even if the federal government’s revised stress test for mortgage qualification, effective June 1, eliminates some potential buyers from the market at this time, Valley prices are likely to continue upwards with the projected continuing high demand for the popular region.

The composite benchmark price for a Fraser Valley property at the end of May was $1,044,500, a one-month increase of 2.3%. Having surpassed the $1-million mark in April for the first time, this average price across all Fraser Valley housing types is now 128,000 under Metro Vancouver’s composite benchmark. Many home buyers have been attracted to the Valley’s spacious properties and semi-urban lifestyle during the pandemic and Valley homes offer many amenities for young families as well as first time home buyers. In my monthly selections below, you can find a comparison of benchmark prices in the geographical areas closest to overall benchmark price for each property type. This selection is meant simply as a guide for your shopping or listing considerations. Remember that benchmarks are average prices for comparable properties. If you are an interesting in a more detailed analysis of a particular neighbourhood, please let me know and I will be happy to provide you with additional information. If you are thinking of listing, I can prepare a customized Comparative Market Analysis for your home and can also be able to advise you on the best range for your listing price in this dynamic market. Currently, the average length of time to sell a single family detached home in the Fraser Valley is 14 days; townhouses remain on the market for an average of 12 days; and condominiums for an average of 20 days. Please feel free to contact me. I am happy to help with any of your real estate needs.     

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of May was $1,323,300 an increase of 2.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,731,600 and Mission at $925,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,361,800, an increase of 3.1% from the preceding month; Langley at $1,79,000, an increase of 2.5% from the preceding month; and Cloverdale at $1,389,600, an increase of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,308,700, an increase of 1.6% from the preceding month; North Delta at $1,217,600, an increase of 0.8% from the preceding month; and Abbottsford at $1,143,600, an increase of 2.4% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of May was $670,00, an increase of 2.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $805,800 and Mission at $557,600. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $675,700, an increase of 3.1% from the preceding month; Langley at $680,600, an increase of 2.9% from the preceding month; and Surrey at $685,500, an increase of 2.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $675,700, an increase of 3.1% from the preceding month; Abbotsford at $561,600, an increase of 3.9% from the preceding month; and Mission at $557,600, an increase of 4.7% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of May was $488,500, an increase of 2.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $565,100 and Abbotsford at $371,600. Only two municipalities were on the higher side of the average: Cloverdale at $531,400, an increase of 1.9% from the preceding month; and South Surrey/White Rock at $565,100, an increase of 2.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $475,700, an increase of 1.8% from the preceding month; North Surrey at $459,600, an increase of 1.5% from the preceding month; and Langley at $459,100, an increase of 2.7% from the preceding month. 

 

I can 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.