FRASER VALLEY

Prices decline in extended sales slump; inventory up over one year ago

Residential sales in the Fraser Valley continued their lengthy decline for a fifth consecutive month in November with one of the lowest sales volumes in the last ten years. November’s total of 891 sales transactions was down from the 970 sales recorded in the preceding month, a month-over-month drop of 8.1%. This ongoing downward slope of Valley sales began last July as prospective home buyers put purchases on hold during Canada’s high mortgage rates regime. While the Bank of Canada held its policy rate to 5.0% again with its most recent  announcement December 6. Following the central bank’s announcement, as of December 7, the lowest mortgage rates offered by Canada’s major banks were a 5-year fixed rate at 5.69% and a 5-year variable rate at  6.7%.  On a year-to-date basis, Fraser Valley sales are down only 4.7% from 2022, illustrating the current decline has come off a relatively strong demand in the first half of 2023 prior to the BoC’s policy rate hitting 5.0%. While the Fraser Valley market is now in an overall balanced condition with the sales-to active listings ratio at 14% ending November, new listings have continued to decline in recent months. November saw 2.030 new listings, a drop of 20% from October, and 43% below this year’s peak of 3,533 new listings last May. The active Valley inventory at the end of November totaled 6,254 homes, a decline of 5.0% from the October, and on a year-to-date basis was down 9.4%. However, the current supply is a substantial  17% higher than the same period one year ago. Anyone wanting to find a Valley home now has therefore a relatively good selection. Demand for townhouses and condominiums remains slightly elevated over single family detached homes. The 12% sales-to-active ratio has moved detached home into a buyer’s market at present and prospective buyers are encouraged to make offers in this segment as prices continue to trend downwards. During November, single family detached homes were on the market, on average, for 36 days, while townhouses and condominiums sold on average within 29 days. At the end of November, the combined benchmark price for a residential property in the Fraser Valley was $1,003,900, a decline of 1.1% from the preceding month.     

My monthly selection of comparative benchmark prices below serves as guide to relative prices in different areas of the Fraser Valley at the end of November. Each of the property types has a cluster of benchmark prices on each side of the overall average for the area. The month-over-month price changes also provide a general guide to the market activity in each area. Remember that benchmarks are average prices for comparable homes. There may be specific prices that are more aligned with your budget. I keep a close eye on the market so please let me know if your would like more detailed information on any area. Notably this past month, there is predominance of price declines as the market adjusts to the cooling effect of higher interest rates. If you are interested in exploring further any particular area, I will be happy to assist you with the most up-to-date market data. And if you are considering listing your home for sale, I can prepare a Customised Market Analysis and advise you on the optimal listing price in the current market conditions. Please feel free to call with any questions you may have.    

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of November  was $1,489,100, a decrease of 0.9% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,950,800 and Mission at $991,900. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,523,500, decrease of 2.5% from the preceding month; Langley at $1,622,100, a decrease of 0.6% from the preceding month; and Abbotsford at $1,161,600, an increase of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,477,700,  no change from the preceding month; Cloverdale at $1,472,200, a decrease of 0.6% from the preceding month; and North Delta at $1,363,500, a decrease of 0.8% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of November was $837,200, a decrease of 1.0% from the preceding month. The extremities of this average were South Surrey/White Rock at $971,800 and Abbotsford at $648,500. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $850,400, a decrease of 1.0% from the preceding month; Surrey at $842,500, a decrease of 1.0% from the preceding month; and Langley at $862,800, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $752,100, a decrease of  4.5% from the preceding month; Mission at $671,500, an  increase of 1.1% from the preceding month; and Abbotsford at $646,500, a decrease of 0.2% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of November was $545,300, no change from the preceding month. The extremities of this average were South Surrey/White Rock at $647,000 and Abbotsford at $442,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $556,100, a decrease of 0.8% from the preceding month; Cloverdale at $586,800, an increase of 0.8% from the preceding month; and Langley at $604,900, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $576,000, a decrease of 0.4% from the preceding month; Mission at $452,300, a decrease of .1% from the preceding month; and Abbotsford at $442,400, an increase of 0.9% 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.