FRASER VALLEY

Sales volume still increasing in Fraser Valley; Some early signs of prices inching upwards.  

We’ve seen another month of strong sales activity in the Fraser Valley. No doubt the lovely weather in October was part of the reason for home shoppers to get out, but the excellent price levels across all property types is a more likely the primary reason for the robust sales volume. October saw an increase in sales of close to 19 per cent more than in September this year. And on a yearly comparison, this was nearly 40 per cent higher than one year ago. I have been encouraging home seekers to take advantage of the market stability for several months now. When prices are relatively stable, the sales transaction for both the buyer and seller is more relaxed. We can recall the frenzied market before government measures took effect to cool the rapidly escalating prices. In those conditions, competing bids made purchasing a home very stressful for the buyer. If you are a home seeker, it’s a great time to make an offer.

I want to point out, however, that the Fraser Valley market is currently lagging a bit in new listings. During this past October there were 7,398 active l listings – still an excellent supply – but new listings during the month were down close to 7 per cent from September. On a simple supply and demand basis, this could exert some upward pressure on prices since demand shows signs of remaining strong.  Declining prices, as we’ve seen for the past year, created a general division between two groups of sellers. There are those sellers who list their property early in the decline period for fear the price drop will cost them too much. There are other who wish to sell, but who decide to wait until the “price bubble” returns to a more historical level and then wait for price increases to begin again. This can result in price changes moving in opposite directions in different areas, and this requires a close analysis of changes from month to month. I believe that for some property types, prices have already begun to inch upwards. For example, benchmarks for single family detached homes in all but two municipalities in the Fraser Valley showed increases from September to October.  I encourage you to watch the monthly changes I track for you in this newsletter. There are still relatively small price fluctuations each month, but they can become the key indicators for price direction over a period of time. If you would like detailed analysis for any specific property type and area, please let me know.  Below you can find a comparison of leading benchmarks across the Valley.    

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of October was $952,600, a decrease of 0.3 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,318,300 and Mission at $639,700. The three municipalities closest to benchmark on the higher side of the average were: Langley at $983,500, an increase of 0.1 per cent from the preceding month; Cloverdale at $996,500, an increase of 1.1 per cent from the preceding month; and Surrey at $1,005,200, an increase  of 0.2 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average of were: North Surrey at $937,600, a decrease of 0.4 per cent from the preceding month; North Delta at $886,800, a increase of 1.3 per cent from the preceding month; and Abbotsford at $786,700, a decrease of 0.6 per cent from the preceding month.  

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of October was $516,000, a decrease of 0.8 per cent from the preceding month. The extremities of the average were South Surrey/White Rock at $640,300 and Abbotsford at $381,200. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $544,00, a decrease of 1.7 per cent from the preceding month; North Delta at $547,800, a decrease of 1.5 per cent from the preceding month; and Surrey at $558,700, a decrease of 1.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $484,100, a decrease of 0.4 per cent from the preceding month; Mission at $435,400, an increase of 1.3 per cent from the preceding month; and Abbotsford at $381,200, a decrease of 0.2 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of October was $405,100, a decrease of 0.1 per cent from the preceding month. The extremities of the average were South Surrey/White Rock at $474,800 and Abbotsford at $308,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $410,400, an increase of 2.1 per cent from the preceding month; Cloverdale at $453,500, an increase of 0.7 per cent from the preceding month; and South Surrey/White Rock at $474,800, a decrease of 3.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $399,700, a decrease of 0.1 per cent from the preceding month; North Surrey at $397,900, an increase of 0.9 per cent from the preceding month; and North Delta at $372,100, an increase of 1.8 per cent from the preceding month.

Let me help

I love to help clients and I can assist in many different ways. I have a strong background in banking and finance and can offer expert advise on your mortgage and your budget. Some clients are thinking about renovations, either to add value to their home before listing it for sale, or simply for their living comfort. I can recommend reputable and reliable tradespeople who do quality work for reasonable rates. I can also provide you with a customized analysis of homes and prices in any area you may be interested in. Please let me know if you have any questions about anything to do with your real estate needs.