FRASER VALLEY

Balanced market, but still cooling; new listings sell quickly

Home sales in the Fraser Valley in September continued the downward trend seen over the past six months, showing a decrease of 11.8% from August. While the market’s cooling is still primarily attributable to the higher mortgage interest regime that has seen rate hikes ongoing since last spring, Valley prices also fell with the declining sales volume as demand by prospective buyers lessened under more onerous mortgage qualification requirements. However, a rise in new listings in September appears to signal that prospective home buyers are again becoming comfortable with the new price levels taking shape. Recent new listings increased more than 11% over August’s figures, bringing the Valley’s available inventory to over 5,800 properties at the end of September. With the rising available housing supply, just 1.1% below the preceding month of August, the Valley’s residential market had an overall sales-to-active ratio of 15%. This is squarely in the mid-range of a what is called a balanced market, defined with the ratio between 12% and 20%. The current inventory level offers prospective buyers an excellent selection with a wide variety of homes, notably over 53% higher than in the same period one year ago. September’s demand for a Valley home translated into 897 sales transacted in the month, with purchases fairly evenly distributed across all property types, and new listing being sold with relatively little time on the market. Single family detached homes sold on average within 34 days; townhouses on average within 32 days; and condominiums within an average of 30 days. Some further slowing in sales is expected while the market continues to settle into a state of normal upward price movement; however, there are still excellent purchase opportunities at this time for buyers eager to get into a Valley home.

The combined benchmark price for residential property in the Fraser Valley at the end of September was $1,011,100, a decline of 3.0% from the preceding month. Notably, the biggest declines were seen in detached homes, with benchmark prices in this category now at levels recorded one year ago. In the section below, you will find the benchmark prices for each property type in Fraser Valley at the end September along with the high and low ends of the average as an indicator of the range of prices composing the benchmark. Clustered around each benchmark are the closest prices for comparable properties in different areas of the Fraser Valley. Each price shows the average price change from the previous month, a general indicator of the current demand in a particular area. It is important to remember that benchmarks are average prices for comparable homes and can be useful as a general guide to a price in a specific area. However, I encourage you to call me if you would like more detailed information on a neighborhood of your choice. I am also able to prepare a Customized Market Analysis for your home if you are considering selling. Please don’t hesitate to call.  I want 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 September was $1,462,000, a decrease of 3.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,897,500 and Mission at $993,900. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $1,298,200, a decrease of 3.5% from the preceding month; Langley at $1,556,000, a decrease of 4.1% from the preceding month; and South Surrey/White Rock at $1,897,500, a decrease of 2.9% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,449,300, a decrease of 3.5% from the preceding month; North Delta at $1,462,000, a decrease of 3.4% from the preceding month; and Abbotsford at $1,150,500, a decrease of 6.4% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of September was $822,400, a decrease of 2.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $924,900 and Abbotsford at $446,500. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $871,700, a decrease of 1.9% from the preceding month; North Delta at $554,500, a decrease of 2.2% from the preceding month; and South Surrey/White Rock at $924,900, a decrease of 1.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $815,900, a decrease of 2.0% from the preceding month; Cloverdale at $808,500, a decrease of 1.8% from the preceding month; and North Surrey at $735,600, a decrease of 4.5% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of September was $530,400, a decrease of 2.2% from the preceding month. The extremities of this average were Langley at $599,800 and Mission at $465,300. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $538,000, a decrease of 2.3% from the preceding month; North Delta at $554,500, a decrease of 2.2% from the preceding month; and Cloverdale at $555,300, a decrease 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 $486,500, a decrease of 1.3% from the preceding month; Mission at $465,300, a decrease of 2.2% from the preceding month; and Abbotsford at $446,500, a decrease of 1.2% 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.