FRASER VALLEY

Home sales steady; abundant supply; lower rates expected to drive prices higher

Fraser Valley homes sales remained strong in November, despite not matching the level of resurgence seen in October after months of market doldrums. While dropping 15% from the previous month, November registered 1,136 sales, notably 28% higher than the same month one year ago. Valley home shoppers can enjoy a good selection of available homes with a total inventory of 8,125 properties at the end of November. While new listings declined by 26% from one month earlier, the supply of homes across all property types remains abundant and is above the 10-year season average. Prospective home buyers will find Fraser Valley prices are currently very attractive with the overall benchmark price below $1-million. Adding to the incentive to purchase at this time are lower mortgage rates making for easier payments as the Bank of Canada continues to cut its key policy rate. Last week, the central bank announced its second consecutive half percentage point reduction, bringing the Bank’s key lending rate to 3.25%. This is Canada’s lowest central bank rate since it raised its key rate in July 2023 to 5.0% and marks five successive interest rate reductions since that time. The policy rate underlies variable mortgage rates offered by commercial lenders and has brought current mortgage interest rates down as low as 4.15% for qualified borrowers of five-year term variable rate mortgages at Canada’s big six banks. However, the lower rates will no doubt increase demand in the coming months so prospective buyers may be well advised not to wait longer. Prices are currently stable in the Fraser Valley, but could rise with increased demand in the coming months. At the end of November, the combined benchmark price for residential property in the Fraser Valley was $969,500, a 0.2% decline from the previous month.   

In the section below, please look at my monthly selection of comparative benchmark prices in different geographical areas of the Fraser Valley. This is a guide to average prices for comparable properties in different neighbourhoods. For each property type, I have clustered around the overall benchmark price the closest average prices on the upper and lower sides of the benchmark. The extremities of each average provides an idea of the range of prices making up the average. Month-over-month prices fluctuations are a general indicator a of market activity based on relative demand. Last month prices showed modest increases and decreases mostly less than one percent. Notable exceptions were condominiums in South Surrey/White Rock with a decrease of 4.5% and townhouses in North Surrey dropping 2.9% for the month. Please call me if you are interested in a particular area; I can provide you with the latest actual prices that may fit you budget. And if you are thinking of selling your home, I can prepare a Customized Market Analysis for your property, and advise you on the optimal listing price in the current marker conditions. Last month, newly Valley listed properties sold on average quite quickly. Single family detached homes sold on average within 43 days; townhouses within 33 days; and condominiums within 36 days. With the Fraser Valley continuing to be an attractive region for young families as well as first time home buyers, it’s value for money is still attracting buyers who want to enjoy a urban home in relaxing rural setting.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of November was $1,482,600, a decrease of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,871,400 and Mission at $1,026,100. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,520,500, an increase of 0.2% from the preceding month; Langley at $1,618,400, an increase of 0.3% from the preceding month; and South Surrey/White Rock  at $1,871,400, a decrease of 1.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,480,400, a decrease 0.9% from the preceding month; North Surrey at $1,463,600, a decrease of 0.8% from the preceding month; and North Delta at $1,426,400, an increase of 1.1% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of November was $835,100, an increase of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $952,100 and Abbotsford at $651,00.. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $835,400, an increase of 2.0% from the preceding month; Cloverdale at $856,700, an increase of 0.3% from the preceding month; and Langley at $867,200, 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 $771,200 a decrease of 2.9% from the preceding month; Mission at $678,300, an increase of 0.5% from the preceding month; and Abbotsford at $651,000, an increase of 0.3% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of November was $536,100, a decrease of 1.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $615,3000 and Abbotsford at $438,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $564,000, a decrease of 1.3% from the preceding month; North Delta at $569,200, a decrease of 2.0% from the preceding month; and Cloverdale at $593,300, an increase of 1.0% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $480,100, a decrease of 0.1% from the preceding month; Mission at $463,3000, an increase of 0.8% from the preceding month; and Abbotsford at $438,400, a decrease of 1.9% 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.