FRASER VALLEY

New listings on upswing; market cooling and prices declining

Amid a continuing drop in Fraser Valley home sales in May, now accompanied by  declining prices in all property types, new listings are on the rise, more than tripling the supply of available home since the end of 2021. Valley sales volume for the month of May dipped nearly 17% from the preceding month, and was down close to 54% lower than the same period one year ago. The overall cooling of the Valley market is the aim of the Canada’s current inflation-fighting effort, which saw the Bank of Canada raise its key policy interest rate to 1.5% on June 1. With more rate hikes to come this year, causing commercial mortgage lenders to raise their rates in tandem, housing sales have moved off the frenzied pace seen during the pandemic for the past two years. With the end of the sellers’ market, home buyers now not only have a more relaxed environment when making a purchase offer, but a larger inventory from which to choose as well. The total supply of available Fraser Valley homes at the end of May reached 6,183, an increase of 14.8% from the preceding month, and up 5.4% from the same period one year ago. As the market rebalances to more typical pre-pandemic levels, home buyers are also welcoming the price declines currently being seen. With higher mortgage rates impacting their capacity to borrow, prospective buyers can now find market corrections that help to off-set higher mortgage rates. I encourage clients to look at my monthly selection (below) of comparative benchmark prices for all property types across the Fraser Valley. You will find (bolded) significant price benchmark price decreases in each category.

The combined benchmark price for a Fraser Valley home at the end of May was $1,167,300, a 2.1% decline from the previous month. It was also the first time  that Fraser Valley benchmark prices for all three property types decreased month-over-month since September 2019. In May, the methodology for benchmark prices was also updated to better reflect home features of a “typical” home comparison. The new methodology is based on the rolling average of prices for comparable homes that sold the most in the past five year. The change from the previous method of linking prices to historical benchmark attributes will keep benchmark comparisons up to date in years to come. In my monthly selection below of benchmark prices for all property types, I provide a general guide for home shoppers by comparing aa cluster of benchmarks around the average price for each property type in different areas of the Fraser Valley. This moth the  number of price decreases in each category is noteworthy. The selected clusters are intended as guide for your purchase budget, or your listing price if you are thinking about selling. Please feel free to contact me for more details on any property type and neighborhood you are considering. I can advise prospective home buyers on excellent listings; and if you are thinking of listing your home for sale, I can advise you on an optimal listing price in the current market, and prepare a Customized Market Analysis for your property. Please don’t hesitate to call if I can help in any way.        

 

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of May was $1,712,500, a decrease of 2.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $2,133,400 and Mission at $1,193,600. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,714,700, a decrease of 2.6% from the preceding month; Cloverdale at $1,737,800, a decrease of 3.2% from the preceding month; and Surrey at $1,753,100, a decrease of 2.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Abbotsford at $1,420,200 a decrease of 3.3% from the preceding month; North Delta at $1,589,200, a decrease of 3.1% from the preceding month; and Langley at $1,838,900, a decrease of 1.8% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of May was $918,900, a decrease of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,030,700 and Abbotsford at $751,000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $922,800 a decrease of 3.4% from the preceding month; Cloverdale at $927,100, a decrease of 3.1% from the preceding month; and Langley at $946,500, 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 $835,100, a decrease of 2.9% from the preceding month; Mission at $762,000, an increase of 1.6% from the preceding month; and Abbotsford at $751,000, an increase of 1.3% from the preceding month.

 

 

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of May was $581,400, a decrease of 1.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $642,900 and Mission at $488,700. The three benchmarks closest on the higher side of the average were: Surrey at $618,600, a decrease of 1.1% from the preceding month; Cloverdale at $625,200, a decrease of 2.3% from the preceding month; and both Langley and North Delta at $640,500, a decrease of 0.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $533,600, a decrease of 1.4% from the preceding month; Abbotsford at $490,300, a decrease of 1.6%from the preceding month; and Mission at $488,700, an increase of 3.1% from the preceding month. 

 

Let me help

 

These are challenging times for many home buyers and homeowners. With Bank of Canada interest rates now rising, 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.