FRASER VALLEY

Sales see uptick but still slow; large supply; interest rates down   

The Fraser Valley saw another month of rising sales volume as October’s sales closed 16.7% higher than September’s. It was the second consecutive month of Valley sales moving upward, and at a significantly higher rate than September’s. The rally comes at the same time home sales in Metro Vancouver went in the other direction for an atypical October normally seeing an uptick before the winter season. While not yet showing sustained sales recovery – still 16% below the same month one year – the Fraser Valley remains an attractive market for first-time buyers and young families. Inventory across all property types is plentiful with 10,121 available homes at the end of October. Though down slightly from the previous month, owing to a 14% month-over-month drop in October’s new listings to 2,967, the total supply closed 15% higher than the same period last year. Prospective home buyers can now take advantage of the lowest mortgage interest rates in over three years. With the last Bank of Canada policy rate announcement on October 29, the central bank’s policy rate was cut to 2.25%, and commercial mortgage rates followed with rates now at their lowest in three years. Five year mortgage rates have dropped below five year fixed term rates, and commercial lenders now offer mortgages as low as 3.45% and 3.70% for variable and fixed respectively. Fraser Valley homes continue to sell under the price levels for comparable Metro Vancouver homes further adding to Fraser Valley market attractiveness. With the Fraser Valley’s combined benchmark price more than $200,000 below Metro Vancouver, the Valley offers great value for money and an excellent long-term home investment opportunity. At the end of October, the benchmark price for a residential property in the Fraser Valley was $919,900, a decrease of 0.7% from the preceding month.

In the section below, I provide my monthly guide to comparative benchmark prices in different areas of the Fraser Valley, For each property type you will find the overall benchmark average along with the three closest benchmarks on each side of this average. The month-over-month price changes are the fluctuations that occur typically from the relative demand in a particular area. And from the extremities of each benchmark, you can gauge the range of actual prices making up the average. Remember  that benchmarks are averages so use the benchmark only as guide for you shopping. There can often find an actual price that is a attractive to your budget  I am happy to provide you with the most up to date information on any neighborhood, so please call me if you are interested in exploring listings in a particular area. And if you are thinking of selling your home, I can prepare a Customized Market Analysis for you property and advise you on the optimal listing price in the current market. During the past month of October, newly listed single family detached homes sold within an average of 42 days; townhouses sold on average in 37 days; and condominiums, 42 days. Please let me know how I can assist you further.      

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Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of October was $1,411,900, a decrease of 0.6% from the preceding month. The extremities of this average were: South Surrey/White Rock at $1,754,000 and Mission at $1,015,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,426,800, a decrease of 0.5% from the preceding month; Cloverdale at $1,429,300, a decrease of 0.3 from the preceding month; and Langley at $1,170,100, a decrease of 1.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,386,700, an increase of 0.4% from the preceding month; North Delta at $1,300,800, a decrease of 1.3% from the preceding month; Abbotsford at $1,170,100, an increase of 1.5% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of October was $786,000, a decrease of 1.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $879,100 and Abbotsford at $634,800. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $789,100, a decrease of 3.1% from the preceding month; Langley at $833,000, a decrease of 0.8% from the preceding month; and South Surrey/White Rock at $879,100, a decrease of 3.4% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $780,700, a decrease of 0.2% from the preceding month; North Surrey at $710,500, a decrease of 4.3% from the preceding month; and Mission at $646,000, a decrease of 1.0% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of October was $506,400, a decrease of 0.8% from the preceding month. The extremities of this average were South Surrey/White Rock at $581,300 and Abbotsford at $415,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $532,600, an increase of 0.1% from the preceding month; North Delta at $548,300, an increase of 0.9% from the preceding month; and Cloverdale at $551,900, a decrease of 1.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were North Surrey at $439,600, a decrease of 1.0% from the preceding month; Mission at $437,300, an increase of 0.1% from the preceding month; and Abbotsford at $415,200, a decrease of 0.2% from the preceding month.

I can help

There are many ways I can help you with your real estate transactions. Please let me know how I can help in these challenging times. You may need help in managing your home ownership plans, or in adjusting your  financial strategy for a home purchase. Perhaps you are thinking of listing your home for sale and want to understand the market to set your asking price. Let me help. I have a 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.