Demand in Fraser Valley remains strong; slowing new supply may push prices up in new year

Cooler fall weather has had little effect on the temperature of The Fraser Valley’s residential market. Valley homes remained in hot demand during the month of November, the fifth consecutive month of record-breaking activity. Both sales and new listings reflect the ongoing demand for a Fraser Valley home. November sales across all property types reached a total of 2, 173, an increase of nearly 55% over the same month one year ago. Similarly, November’s 2,217 new listings were over 18% higher than for November 2019. While both sales and new listings did decline compared to the previous month of October –  8.3% for sales and 28% for new listings – the comparison is to one of the busiest Octobers ever in the Valley market. The current inventory of close to 6,000 homes at the end November still provides a good selection of homes across all property types. Much of November’s sales volume was driven by demand for single family detached homes and townhouses where the sales to active listings ratio was more than 50%. The Valley has always been a favorite location for young families and the November sales in family homes reached its highest level in the Fraser Valley Real Estate Board’s 99-year history. Several reports indicate that the Covid-19 epidemic has created a renewed desire among many families wanting to live outside of densely populated rural areas. The current regime of low mortgage rates is also making it possible for families to sell their urban home and migrate to a more spacious property at an affordable price in the Fraser Valley.

The combined benchmark price across all property types in the Fraser Valley at the end of November was $878,100, an increase of 0.7% from the preceding month.  Still well under the $1-million benchmark price in Metro Vancouver, an affordable home for families and first-time home buyers continues to attract buyers, along with the Valley’s many family- oriented communities and quality modern lifestyle. Below, you can find a monthly comparison of average sales prices for each property type in my selection of geographical areas. The comparison shows the price changes for homes which are above and below the local benchmark price based on recent sales activity. It is important to remember that a benchmark is an average price and only a general guide. By examining the particular prices in your desired area, you may often discover a good price that meets your budget requirements more precisely. I am always happy to provide a detailed market comparison for any property you my be interested in. Please feel free to call me for assistance in your decision making, or even if you are just interested in exploring opportunities in the Fraser Valley real estate market. I have extensive experience in all aspect of real estate and am happy to help you in any way I can.         

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of November was $1.061,500, an increase of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,447,700 and Mission at $739,000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,109,300, an increase of 2.0% from the preceding month; Langley at $1,115,200; an increase of 2.2% from the preceding month; and South Surrey/White Rock at $1,447,700, an increase 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 $1,035,900, an increase of 2.0% from the preceding month; Cloverdale at $1,109,300, an increase of 2.0% from the preceding month; and North Delta at $983,800, an increase of 1.2% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of November was $570,100, an increase of 0.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $674,800 and Mission at $476,800. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $579,200, an increase of 0.5% from the preceding month; North Delta at $581,800, an increase of 0.2% from the preceding month; and Surrey at $586,000, an increase of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $560,400, an increase of 0.2% from the preceding month; Abbotsford at $480,900, an increase of 1.0% from the preceding month; and Mission at $476,800, an increase of 1.3% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of November was $435,900, an increase of 0.3 % from the preceding month. The extremities of this average were South Surrey/White Rock at $507,200 and Abbotsford at $398,000. The two municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $469,400, a decrease of 1.1% from the preceding month; and South Surrey/White Rock at $507,200, an increase of 2.7% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $427,600, no change from the preceding month; North Surrey at $415,500, an increase of 0.3% from the preceding month; and Langley at $398,000, an increase of 0.1% from the preceding month. 

 

How can I help?

Please let me know if you need specific information for a market comparison in any property type. I am happy to prepare a customized market analysis for your home if you may be thinking of selling. And don’t forget, if you are preparing your home for a listing, or just making renovations to enjoy yourself, I can recommend excellent and trustworthy trades people for whatever your needs, whether plumbing, electrical work, carpentry, or general renovations. I am also able to advise you on the optimal investment to maximize your home’s value in the event you are planning to sell. And for prospective buyers, I have the financial experience to advise you on mortgages and fees associated with a home purchase. I am always happy to help in any way I can.