FRASER VALLEY

Valley benchmark price drops; robust inventory; BoC cuts lending rate

Fraser Valley residential sales saw a slight month-over-month uptick to 1,517 transactions in May, up 3.0% from the preceding month, while new listings of 3,760 were a drop of 5.0% for the same period. Overall, the result was the strong inventory of available homes. The Valley’s active listings at the end of May totalled 7,904, the highest level of available homes in nearly five years. Although sales continued to be slow on a seasonal basis, down 11 percent for the same period last year and 21% below the 10 year average, the Valley’s market moved into greater balance with sales-to-active listings ratio of 19% still within the balanced range of 12% to 20%. Along with the robust inventory and slower sales, there is a moderating influence on rising prices and price flattening seen across all property types. In its current market condition, the Fraser Valley is poised well for an expected rise in activity following the first of the Bank of Canada’s long-awaited interest rate cuts announced last week. The drop of the country’s key policy rate from 5.0% to 4.75% is the first rate cut in the central bank’s fight on inflation since it began raising rates in March, 2022. Commercial mortgage rates during this period have been a record highs, sidelining many prospective buyers. With Canada’s consumer price index inflation rate at 2.7% in April this year, the central bank believes its can reach its target of 2.0% inflation while beginning its policy rate cuts at this time. Several economic predictions see the central bank making further rate cuts to 4.25% by the end this year. As commercial banks follow with lower mortgage rates, pent-up demand in the real estate market can no doubt be expected, bringing with it upward pressure on prices again. While more new listings may help to moderate the rate of price rises, the strong supply in the Fraser Valley at present makes this an opportune time for home shoppers. At the end of May, the combined benchmark price for a residential property in the Fraser Valley was $1,006,300, notably a decline of 0.2% from the preceding month.

In the section below you will find our monthly selection of comparative benchmark prices for different areas in the Fraser Valley at the end of May. Please review these prices and use this selection as a guide to where you might like to focus your home search. Each property type has its own overall benchmark price along with three of the closest average prices on each side of the benchmark average. Benchmarks are average prices for comparable properties, so you should also note the extremities of the averages, which will give you an idea of the range of prices in each category. I can supply up-to-date information on any area you may be interested in, so don’t hesitate to call me. And if you are considering selling your home, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market conditions. Last month, detached family homes in the Fraser Valley sold on average within 25 days on the market; townhouses sold on average within 20 days; and condominiums on average within 23 days.  Please call for any assistance you need. I love to help my clients.             

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of May was $1,530,200, an increase of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,946,600 and Mission at $1,046,700. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,531,200, an increase of 0.6% from the preceding month; Surrey at $1,575,900, an increase of 1.2% from the preceding month; and Langley at $1,650,200, an increase of 0.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,517,200, an increase 0.8%  from the preceding month; North Delta at $1,439,900, an increase of 1.3% from the preceding month; and Abbotsford at $1,240,900, an increase of 0.3% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of May was $853,800, a decrease of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $977,100 and Mission at $674,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $858,800, a decrease of 0.3% from the preceding month; Langley at $874,400, an increase of 0.8% from the preceding month; and Cloverdale at $874,700, a decrease 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 $798,800, an increase of 0.6% from the preceding month; Mission at $674,600, an increase of 0.8% from the preceding month; and  Abbotsford at $669,900, an increase of 0.7% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of May was $555,100, a decrease of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $644,100 and Mission at $452,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $573,500, an increase of 3.0% from the preceding month; North Delta at $591,500, a decrease of 0.9% from the preceding month; and Cloverdale at $607,400, 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 $573,500, a decrease of 0.9% from the preceding month; Mission at $452,300, a decrease of 0.5% from the preceding month; and Abbotsford at $451,800, an increase of 0.1% 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.