FRASER VALLEY

Sales down in high interest regime;  plentiful inventory; price drops  

Residential market activity in the Fraser Valley declined again in October, down for the fourth consecutive month. October’s total of 970 sales transactions was a drop of 11.8% from the preceding month following previous monthly declines of 14% in September, 6.9% in August and 30% in July. This current downward trend highlights the delayed effect of ten incremental interest rates hikes by the Bank of Canada since March 2022. On a year-over-year comparison,  October’s sales were close to 8.0% higher than the same month in 2022, indicating the current down slope began in July this year after the BoC policy rate rose to 4.75% in June, when Valley sales had reached a 12 month high of 1,935 sales. This peak in sales was reached after the central bank’s rate sat at 4.5% for the first five months of this year. Many prospective buyers could therefore be waiting for a even a slight interest rate reduction to stimulate home purchases. While the Valley market continues to adjust to the current high mortgage cost regime, the overall market remains balanced with sales-to-active listings in a ratio of 15% although single family homes are on the cusp of becoming a buyers market with a 12% ratio at present. New Valley listings in October also saw a decline with 2,535, a drop of 11% from the preceding month. However, with a healthy increase of 2,860 new listings in September, the active inventory in the Fraser Valley was up to 6,580 homes, slightly above the preceding month and more than 17% higher than one year ago. The ample supply provides a good selection at present and is also a factor in declining benchmark prices seen over the past three months. The composite benchmark price for a residential property in the Fraser Valley at the end of October was $1,015,200, a drop of 1.4% from the preceding month.

Below you will find my monthly guide using comparative benchmark prices in the six areas closest to the overall benchmark for each property type. Note that the extremities of each benchmark which will give you the range of prices making up the benchmark average. There are three delected benchmarks grouped on the higher side and three on the lower side of each average. For each benchmark price you can also see the percentage of the price change from the previous month. This can serve as a general indicator of the recent market activity in the residential area. However, keep in mind that benchmarks are just a guide with averages for comparable properties in a particular area. There may be particular prices within a range that fit your budget more precisely. There are some significant prices declines this month, particularly in the detached homes category, so I urge prospective buyers to take a close look. If you are interested in exploring an area, please give me a call. I can provide you with the most up-to-date information on any neighbourhood you like. And if you are considering selling you home, I can prepare a Customized Market Analysis of your property and advise you on the optimal listing price for the current market. I am happy to help in any way I can.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of October was $1,503,300, a decrease of 1.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,946,700 and Mission at $1,004,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,561,700, decrease of 1.5% from the preceding month; Langley at $1,632,100, a decrease of 0.3% from the preceding month; and South Surrey/White Rock at $1,946,700, a decrease of 2.1% 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 of 2.5% from the preceding month; North Surrey at $1,478,000, a decrease of 1.0% from the preceding month; and North Delta at $1,374,600, a decrease of 1.2% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of October was $845,300, a decrease of 0.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $971,600, and Abbotsford at $649,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $850,400, a decrease of 1.0% from the preceding month; Cloverdale at $852,800, an increase of 0.0% from the preceding month; and Langley at $869,600, 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 $787,200, an increase of 2.5% from the preceding month; Mission at $664,600, a decrease of 1.3% from the preceding month; and Abbotsford at $649,600, a decrease of 0.8% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of October was $545,400, a decrease of 0.1% from the preceding month. The extremities of this average were South Surrey/White Rock at $642,700 and Abbotsford at $438,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $560,900, a decrease of 1.2% from the preceding month; North Delta at $578,200, a decrease of 1.4% from the preceding month; and Cloverdale at $580,500, a decrease 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 $489,800, a decrease of 0.8% from the preceding month; Mission at $452,800, a decrease of 1.1% from the preceding month; and Abbotsford at $438,600, a decrease of 1.0% 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.