FRASER VALLEY

Fall sales down; new listings up; prices declining

Fraser Valley residential sales declined for the third consecutive month in September. The three successive month-over-month declines saw September’s volume of 1,100 sales down 14%, preceded by a drop in August of 6.9% and July’s decline of 30%. While fall sales typically slow down from summer home shopping, the cooling trend which started mid-summer suggests Canada’s high mortgage rate climate is gaining traction as buyers have faced since last spring the compound  challenge of persistent strong demand and rising prices. However, this past September also saw the second month of declining benchmark prices as well as a 9.1% jump in new listings – an additional factor in moderating upward price pressure. The 2,860 new listings in September brought the region’s inventory across all property types to a total of 6,532 homes, just 3.5% below the  ten-year average. This provides an ample supply at present for home shoppers who may be anxious over market signals suggesting the Bank of Canada could announce another rate increase later this month. With the country’s consumer price inflation (CPI) rate still high at 3.8% at the end of September, but down from 4.0% in August, the central bank is under less pressure to announce another policy rate increase on October 25. However, the Bank’s current rate remains at 5.0% has pushed mortgage rates to ten year highs. According to WOWA.ca, the highest weighted category in the CPI index of inflation is Shelter at 28.24%. This compares to Food at 16.65% and Transport at 16.44%.  The market’s current benchmark price declines may also provide some additional room right now for buyers to qualify for mortgages in this high interest period. The previous two months have seen month-over-month benchmarks for the Fraser Valley decline by 0.9% in August and another 0.8% in September. At the end of September, the combined benchmark price for a Fraser Valley residential property was $1,029,200, a 2.1% increase over one year ago.  

Please review my monthly selection below of benchmark prices for each property type across the Fraser Valley. The selected benchmarks represent the municipalities closest to the overall benchmark for the property type. There are three benchmarks on the higher side and three on the lower side of each average. For each benchmark price you can also see the percentage of change for the area from the previous month. This can serve as a genera indicator of the recent market activity in the residential area. The extremities of each average price gives you the range of prices within their composite average. You may wish to use this as rough guide to understand where you might want to search for particular prices more precisely aligned with your budget. Please call me if you would like more detailed information on any neighbourhood. I can provide you with the most up-to-date information on new listings and any price changes.  And if you are considering listing your property for sale I can develop a Customised Market Analysis for your property, and advise you on the optimal listing price in the current market. Please feel free to call me with any questions. I am always happy 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 $1,534,500, a decrease of 0.6% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,988,100 and Mission at $1,050,800. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,584,8 an increase of 0.6% from the preceding month; Langley at $1,636,900, a decrease of 0.1% from the preceding month; and South Surrey/White Rock at $1,988,100, a decrease of 0.5% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Cloverdale at $1,518,900, a decrease of 2.2% from the preceding month; North Delta at $1,391,400, a decrease of 1.2% from the preceding month; and Mission at $1,050,800, a decrease of 0.9% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of September was $848,600, an increase of 0.3% from the preceding month. The extremities of this average were South Surrey/White Rock at $994,600, and Abbotsford at $654,600. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $852,400, a decrease of 1.0% from the preceding month; Surrey at $858,800, an increase of 0.1% from the preceding month; and Langley at $861,200, an increase of 0.6% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $768,000, a decrease of 1.9% from the preceding month; Mission at $673,100, a decrease of 0.1% from the preceding month; and Abbotsford at $654,600 an increase of 0.2% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of September was $545,900, a decrease of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $628,600 and Abbotsford at $447,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $567,700, a decrease of 2.8% from the preceding month; Cloverdale at $582,200, a decrease of 2.5% from the preceding month; and North Delta at $586,500, a decrease of 4.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $493,900, a decrease of 1.2% from the preceding month; Mission at $457,900, a decrease of 0.7% from the preceding month; and Abbotsford at $447,200, a decrease of 1.1% 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.