FRASER VALLEY

Home sales still slow, attractive prices; possible demand surge coming

Continuing the trend seen over the previous three months, the Fraser Valley experienced another decline in its residential market activity in November. The present downturn in sales and new listings, however, should not mask the Valley’s popularity as a highly attractive living region with excellent purchase opportunities at this time. The slowing pace of sales, which last month’s total of 839 represented a 6.9% decrease from the preceding month, was more significantly a 57.5% decline from one year ago. This has been the anticipated result of the Bank of Canada’s aggressive series of interest rate hikes since last Spring. Compounded now with the holiday season’s normal persuasion to other market activities, the current decline in home sales is not surprising. In fact, it offers an opportunity to assess the Valley’s residential market’s potential as it rebalances from its pandemic-period buying spree. To be sure, the central bank’s inflation-fighting program has sidelined many prospective buyers with challenging mortgage qualifications. However, price drops that have accompanied the market’s cooling pace of sales have created excellent purchase opportunities at this time. Similarly, the reduced sales volume has required fewer new listings to maintain an ample housing stock. For example, while the 1,703 new listings last month was a 5.0% decrease from the preceding month, the total inventory of  5,330 properties at the end of November was 75.0% greater than one year ago. The combined benchmark price for a residential property in the Fraser Valley at the end of November was $975,400, a decline of 2.0% from the preceding month, and  16.5% down from six months ago. Now that the its composite benchmark is again under $1-million, and more than $150,000 lower than Metro Vancouver’s current comparable benchmark, home buyers can find excellent price opportunities at this time. A surge in demand next year owing to Canada’s large immigration targets may well see upward prices in near future.

In the selection of comparative benchmark prices below, you will be able to month-over-month price changes for similar homes in different areas of the Fraser Valley. This selected areas are based on the three closest benchmarks on each side of the composite average. The extremities of each composite average is provided so you can get see the range of specific prices in the average. This is a guideline only, and home shoppers often find the home they are seeking at the particular price point that want. Please call me if you would like more detailed information on any neighborhood. I can provide you with the most up-to-date information for you home search. And for anyone wanting to list their home, I can provide a Customized Market Analysis to help you to determine your optimal asking price. The Fraser Valley remains a highly desirable living region for young families and first time home buyers. New listings normally sell quickly. Last month single family detached homes were sold on average within 34 days on the market; townhouses on average within 28 days; and condominiums within  27 days. Please don’t hesitate to call me if you even if you have not decided to buy or sell your home at this time. I am always happy to provide market insights and help my clients in any way.   

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of  November was $1,404,900, a decrease of 2.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,849,800 and Mission at $941,200. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,425,300, a decrease of 3.3% from the preceding month; Surrey at $1,426,200, a decrease of 3.9% from the preceding month; and Langley at $1,609,000, a decrease of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,399,000, a decrease of 0.9% from the preceding month; North Delta at $1,272,600, no change from the preceding month; and Abbotsford at $1,106,800, a decrease of 1.3% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of November was $799,400, a decrease of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $917,000 and Abbotsford at $639,800. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $802,200, a decrease of 0.2% from the preceding month; North Delta at $827,900, a decrease of 2.2% from the preceding month; and Langley at $833,200, a decrease of 2.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $792,900, a decrease of  1.3% from the preceding month; North Surrey at $737,400, a decrease of 0.6% from the preceding month; and  Abbotsford at $636,800, a decrease of 1.7% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of November was $518,400, a decrease of 1.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $578,000 and Abbotsford at $426,7000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $529,400, a decrease of 3.0% from the preceding month; North Delta at $544,000, a decrease of 2.3% from the preceding month; and Cloverdale at $551,500, a decrease of 4.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $478,500, a decrease of 2.4% from the preceding month; Mission at $443,300, a decrease of 1.9% from the preceding month; and Abbotsford at $443,300, a decrease of 1.9% from the preceding month.

I can help

These are challenging times for home buyers and homeowners. With Bank of Canada interest rates still 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.