FRASER VALLEY

New listings abound in Fraser Valley; BoC rate up quarter point  

As welcome as flowers in spring, the Fraser Valley last month delivered a extraordinary number of new property listings. The good news for prospective home buyers comes after months of hesitancy by reluctant sellers as prices have edged upwards with demand remaining high in the popular region. With 3,533 additional homes coming on the market during the month, new listings reached close to 3.0% over the 10-year average, and riose over 40% higher than the number recorded in the preceding April. The total inventory of available homes in the Valley at the end of May, closed at 5, 558, a 20% increase over the preceding month, the highest month-over-month increase in more than a year. While the supply is still below pre-pandemic levels typical of the Fraser Valley market, the recent surge is an optimistic indicator that the market is nearing a full recovery to normal activity after a year’s decline under government-mandated market cooling. May’s new listings also added fuel to home sales with pent-up demand unleashed with a 10.1% increase over the preceding month sales volume across all property type. May’s 1,711 home sales also represented a 25.8% increase over the same month one year ago. However, with rising prices in the Canada’s major residential markets generally, last week’s announcement by the Bank of Canada of an additional 0.25% rate increase in its policy rate was not entirely unexpected. However, with the central bank’s benchmark rate now at 4.75%, it is as high as it was in 2001. There will no doubt be some delayed impact on the market. It remains to be seen what effect it will have on residential sales going forward, but with consumer price inflation trending downward, it may be that the current high rate will be in place for a short duration. Canada’s consumer price inflation fell to 4.4% this spring from 8.1% last June and is still expected to drop to around 3.0% this summer.  The Bank of Canada’s target of 2.0% inflation by next year still appears on track. Meanwhile, despite higher borrowing rates, home prices are still rising at the present time. The combined benchmark price for a residential property in the Fraser Valley at the end of May was $1,019,700, an increase of 2.1% over the preceding month and notably the first time since September last year that it has returned again to over the $1-million threshold.         

In the selection below, you will find benchmark prices across different areas of the Fraser Valley for all property types. These benchmark averages show the month-over-month price changes which typically indicate the relative market activity in each area. Around each benchmark, you will find a cluster of prices on the upper and lower sides of the average. This gives you an idea of prices within the extremities of the range of individual prices making up the average. However, keeping in mind that benchmarks are a useful guide average prices, it is always a good idea to look at particular price listings in your selected area. If you would like more detailed information on any neighborhood, please call me. And if you are interested in listing you home for sale, I can help you determine the optimal listing price. Please don’t hesitate to call. I am happy to help in any way I can. 

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of May was $1,491,700, an increase of 2.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,915,400 and Mission at $1,034,200. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,513,100, an increase of 2.1% from the preceding month; Surrey at $1,535,400, an increase of 2.8% from the preceding month; and Langley at $1,575,000, an increase of 2.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,472,600, an increase of 2.9% from the preceding month; North Delta at $1,383,500, an increase of 1.8% from the preceding month; and Abbotsford at $1,206,800, an increase of 3.6% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of May was $826,200, an increase of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $960,400 and Abbotsford at $625,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $761,400, an increase of 1.5% from the preceding month; Cloverdale at $854,700, an increase of 2.1% from the preceding month; and North Delta at $927,700, an increase of 1.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $821,000, an increase of 1.3% from the preceding month; North Surrey at $761,400, an increase of 0.6% from the preceding month; and Mission at $646,300, an increase of 0.5% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of May was $542,300, an increase of 2.0% from the preceding month. The extremities of this average were Cloverdale at $635.600 and Abbotsford at $426,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $558,600, an increase of 2.0% from the preceding month; North Delta at $581,400, an increase of 1.4% from the preceding month; and Langley at $584,200, an increase 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 $581,400, an increase of 1.4% from the preceding month; Mission at $455,300, an increase of 4.7% from the preceding month; and Abbotsford at $426,100, an increase of 0.6% 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.