FRASER VALLEY

Fraser Valley home sales volume steady, still historically high; new listings up in September

Fraser Valley home sales continued at a brisk pace in September, while slowing somewhat again as has been the trend for several months. However, on a historical comparison, Valley sales are still reaching some of the highest levels ever in the history of the Fraser Valley Real Estate Board. September home sales reached a total of 1,866, a decrease of 10.6% from the preceding month of August, and a 16.4% decrease compared with the same period one year ago. However, these comparisons are showing expected declines from the extraordinary demand fueled by low interest and a desire to relocate to the Fraser Valley in the earlier stages of Covid-19. But looking at the sales volume across the Valley’s peak periods in the past 100 year, this September’s sales reached extraordinary heights, being the second highest level ever. September also brought a welcome increase in new Valley listings, which increased by 11.2% over new listings made in the preceding month of August. Prospective buyers who have been watching prices increase owing in part to lessening supply in the Valley will be happy to see an indication that sellers again see the fall as an opportune time put their homes on the market. With September’s new listings reaching 2,342, the Fraser Valley’s total active inventory at the end of the month closed at 3,812. However, I would caution prospective buyers not to count on new listings returning to their historically high numbers this fall in order to completely remove upward price pressure in the Valley’s housing market. The inventory level at the end of September is still 6.5% lower than the preceding August, and 48.3% lower than it was at this time last year. There is still a need for more residential development to meet the high demand for a Valley home, and this is a need that must be addressed by all levels of government. For home seekers wanting to buy, the fall appears to be shaping up with an good selection across all property types.

The combined benchmark price for a Fraser Valley home at the end of September was $1.083,400, an increase of 1.6% over the preceding month of August. Market watchers reading this monthly newsletter will notice that this month-over-month increase is significantly higher than the 0.2% increase noted in last month’s newsletter. Fraser Valley prices are now on average within $100,000 of the Metro Vancouver benchmark, a clear indication of how much demand for Valley homes has increased over the past year. The Metro Vancouver combined benchmark was $1,038,700 in September 2020. In my monthly selection of comparative benchmarks for each property type around the Fraser Valley, you will find the most recent month-over-month price changes. Notably, some of the biggest price jumps are in detached homes, for example, with a 3.0% increase in Langley and a 3.3% increase in Cloverdale. However, equally notable was the decrease of 1.3% in the average price of a townhouse in Cloverdale for the same period. Please let me know if I can help in your Fraser Valley home search. I will be happy to provide you with more detailed information on homes in any of areas of the Fraser Valley. And if you are considering listing your home for sale, please feel call me for assistance in determining your optimal asking price. I keep a close eye on market activity and can advise you on selling in this high demand environment. Valley homes sell on the whole rather quickly. In September, on average, single family homes sold within 26 days on the market; townhouses sold with 19 days of listing; and condominiums within 26 days.  

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of September was $1,362,200, an increase of 1.9% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,736,800 and Mission at $968,800. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,418,100, an increase of 0.9% from the preceding month; Langley at $1,422,800, an increase of 3.0% from the preceding month; and Cloverdale at $1,449,100, an increase of 3.3% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,355,400, an increase of 2.8% from the preceding month; North Delta at $1,362,200, an increase of 1.9% from the preceding month; and Abbotsford at $1,172,200, an increase of 1.7% from the preceding month.

 

Townhouses

 

The benchmark price for a townhouse in the Fraser Valley at the end of September was $707,300, an increase of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $841,900 and Abbotsford at $604,700. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $719,400, an increase of 1.6% from the preceding month; Langley at $729,100, an increase of 0.8% from the preceding month; and Cloverdale at $740,200, 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 Delta at $689,100, an increase of 1.4% from the preceding month; North Surrey at $677,500, an increase of 1.3% from the preceding month; and Mission at $611.300, an increase of 1.1% from the preceding month.

 

Condominiums

 

The benchmark price for a condominium in the Fraser Valley at the end of September was $505,500 an increase of 1.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $578,000 and Abbotsford at $395,800. Only two municipalities were on the higher side of the average: Cloverdale at $539,500, an increase of 1.4% from the preceding month; and South Surrey/White Rock at $578,000, an increase of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $492,300, an increase of 1.1% from the preceding month; Langley at $476,000, an increase of 0.5% from the preceding month; and North Surrey at $469,700, an increase of 0.9% from the preceding month. 

 

How can I help?

I am here to help you, whatever your housing requirements, I bring experience in banking and finance to assist you in your mortgage planning and can also advise you on pricing your home at the optimal price for the prevailing market conditions. This may include renovations that will increase your home value or simply enhance your own living comfort. I can recommend excellent tradespeople who are reputable, reliable and reasonable in their rates. It gives me pleasure to help my clients. Please don’t hesitate to call me for any real estate advice you may need.