Residential sales at record highs; new listings still in decline
Home sales in the Fraser Valley continue to rise even as temperatures drop, reaching well beyond typical seasonal norms. The past month of November saw the second highest sales volume across all property types on record for the Valley. November’s 1,922 home sales, while down by 9.2% from the same month last year, increased by 1.8% over the preceding October this year. The November volume is a strong sign of the continuing high demand for a home in this region. Normally, sales begin to taper off as fall turns into winter, and home shoppers turn their attention to festive activities and other types of purchases for the holidays. Low mortgage rates continue to make home purchases an attractive investment for many buyers, but the high demand also continues to push prices upward. The combined benchmark price for a residential property in the Fraser Valley at the end of November was $1,143,600, a 3.3% increase over the preceding month. This is one of the largest monthly jumps in recent times.
Recent comments from the Bank of Canada suggesting that interest rates may rise in the new year are also fuelling the current high demand. From the perspective of Canada’s economic recovery from its Covid 19 induced contraction, the ongoing demand in the housing has been favourable to overall GDP measurement, but for Canadian home shoppers it is now the challenge of affordability that confronts many looking to find a home within normal budgetary constraints. Add to the demand-driven price escalation that new listings have been declining in the Fraser Valley for several months and the upward pressure on prices increases even more. November’s new listings across all property types in the Fraser Valley decreased by 11.6% from October, with a resulting total inventory of 3,048 at the end of November, a decrease of nearly 48% from one year ago. In the current high demand market, the average number of days to sell a newly listed single family detached home in the Fraser Valley was 24 days; townhouses were on the market for an average of 16 days; and condominiums for an average of 24 days. In my monthly selection below of benchmark prices for the three property types around the Fraser Valley, I created a guide for buyers to search for homes within their budget and desired geographical area. However, it is important to remember that Benchmarks are simply average prices for comparable homes. These averages are shown with their high and low extremities which often have a wide range. With some of the biggest benchmark price jumps in recent months, it is notable to see one-month increases such a 6.6% for a detached home in North Delta; a 4.6% one-month increase for a townhouse in North Surrey, and a one-month increase of 4.2% for a condominium in Langley. If you need assistance in your home buying for any reason, please contact me.I will be happy to provide you with more detailed information on any property type in a particular neighbourhood. I can also advise prospective sellers on the optimal price for their listing.
Detached Homes
The benchmark price for a detached home in the Fraser Valley at the end of November was $1,48,000, an increase of 3.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,8228,200 and Mission at $1,027,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,499,600, an increase of 3.9% from the preceding month; Langley at $1,519,890, an increase of 4.3% from the preceding month; and Cloverdale at $1,527,300, an increase of 1.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,438,300, an increase of 3.3% from the preceding month; Abbotsford at $1,252,200, an increase of 3.6% from the preceding month; and Mission at $1,027,400, an increase of 2.8% from the preceding month.
Townhouses
The benchmark price for a townhouse in the Fraser Valley at the end of November was $740,100 an increase of 2.7% from the preceding month. The extremities of this average were South Surrey/White Rock at $889,400 and Abbotsford at $617,300. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $753,000, an increase of 2.6% from the preceding month; Surrey at $755,700, an increase of 3.0% from the preceding month; and Cloverdale at $781,100, an increase of 3.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $726,400, an increase of 4.6% from the preceding month; North Delta at $725,700, an increase of 3.6% from the preceding month; and Mission at $618.300, an increase of .1% from the preceding month.
Condominiums
The benchmark price for a condominium in the Fraser Valley at the end of November was $530,400 an increase of 3.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $607,600 and Abbotsford at $415,300. Only two municipalities were on the higher side of the average: Cloverdale at $558,600, an increase of 2.4% from the preceding month; and South Surrey/White Rock at $607,600, an increase of 2.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $527,000, an increase of 4.1% from the preceding month; Langley at $506,900, an increase of 4.2% from the preceding month; and Mission at $443,720, an increase of 2.6% from the preceding month.
How can I 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. If you are thinking about selling, I can also advise you on the optimal listing price in this high demand market. Please feel free to call.