FRASER VALLEY

Composite benchmark price again below $1-million; small uptick in sales

Residential market activity in the Fraser Valley in October showed little change from the preceding month, with a slight increase of 0.4% in sales over the preceding month. However, the sales total of 901 properties was 53.5% down from the same period one year ago, an indicator of the ongoing impact of higher  mortgage rates as the Bank of Canada continues its inflation-fighting policy with a series of key interest rate hikes. The most recent increase by the central bank with 50 basis points added in late October brought the central bank’s policy rate to 3.75%. the highest it has been in 16 years. As Canada’s consumer inflation rate is  still close to 7.0%, the bank is expected to make at least one more rate increase in December. The effect of these rates hikes has been slow in bringing Canada’s inflation rate to the 2.0% target, although it is has had major impact on the residential markets. Typical mortgage rates on five-year fixed terms are now around 5.0% and variable rate mortgages on 25- or 30-year terms around 4.75%. The slight sales uptick from last month is nonetheless an optimistic sign that buyers are still entering the market. Fraser Valley home prices over the past six months have dropped an average of 11.7% providing many good purchase opportunities, but many prospective sellers may be watching signs of upward price movements again. New listings in the Fraser Valley last month were down by 3.8% from the preceding month, with a total of 2,186 for October. However, with slower sales, the Valley’s inventory reached 5,646 properties at the end of the month, still providing a large choice for prospective buyers. The combined benchmark price for a residential property in the Fraser Valley at the end of October was $995,400, a decrease of 1.6% from the preceding month.   

In my monthly selection of price comparisons below, you will find the most recent benchmark changes for each property type in different areas of the Fraser Valley. Notably, the only increases occurred among townhouses and condominiums and these were in Surrey, North Surrey, and North Delta, where many of my clients are looking to live. While these monthly fluctuations cannot be seen as setting a trend at present, they do inform where recent activity has been strong. It is important to remember, however, that benchmarks are averages and it is useful to examine the extremities of each average to get a better idea of the range of prices for comparable homes in each area. If you would like more detailed information on a specific neighbourhood, please don’t hesitate to call. And if you are considering listing you home for sale, I can prepare a customized market analysis to guide you in setting your optimal asking price. Fraser Valley homes are still selling on average after only a relatively short time on the market. Last month detached home sold on average within 34 days; townhouses on average in 27 days; and condominiums on average in 31 days. If you have any questions about your housing needs, please call me. I love to help my clients in any way I can.     

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of October was $1,436,400, a decrease of 1.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,895,900 and Mission at $969,800. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,473,900, a decrease of 2.4% from the preceding month; Surrey at $1,483,700, a decrease of 2.1% from the preceding month; and Langley at $1,528,100, a decrease of 1.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,412,100, a decrease of 2.6% from the preceding month; North Delta at $1,273,100, a decrease of 2.0% from the preceding month; and Abbotsford at $1,121,300, a decrease of 2.54% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of October was $809,800, a decrease of 1.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $923.100 and Abbotsford at $650,800. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $846,500, a decrease of 3.7% from the preceding month; Langley at $852,600, a decrease of 2.2% from the preceding month; and South Surrey/White Rock at $925,100, a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $803,500, a decrease of 1.5% from the preceding month; Cloverdale at $800,700, a decrease of 1.0% from the preceding month; and North Surrey at $742,000, an increase of 0.9% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of October was $527,900, a decrease of 0.5% from the preceding month. The extremities of this average were Langley at $588,900 and Mission at $451,900. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $545,700, an increase of 1.4% from the preceding month; North Delta at $556,800, an increase of 0.4% from the preceding month; and Cloverdale at $574,900, a decrease of 3.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $490,400, an increase of 0.8% from the preceding month; Mission at $451,900, a decrease of 2.9% from the preceding month; and Abbotsford at $434,800, a decrease of 2.6% from the preceding month.

Let me 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.