FRASER VALLEY

Buyers remain on sidelines; Inventory grows while prices decline

Fraser Valley home sales this past September continued another month of lagging behind new listings, as prospective buyers remain on the sidelines while inventory grows and prices decline. September’s sales total of 982 was down 8% from the preceding month, and over 10% below the same period one year ago. At the same time, new listings showed a month-over-month increase of 20.6% – adding 3,352 homes across all property types to the Valley’s supply. The total inventory in the Fraser Valley at the end of September reached 9,045 homes, up 5% from the preceding month, and 39% above the same period one year ago. While home shopping normally falls off in the fall, the current seasonal slow-down marks the second-slowest month in the last 10 years in the Valley’s residential market. With the robust supply at present, the sales slump is raising speculation among market watchers that buyers anticipate further interest rate cuts along with an ongoing downward slide in prices before they are incentivised to make a purchase. There are several factors that may account for this hesitancy. After seeing 10 central bank rate hikes to a high of 5% from 0.25% in 2022, and a tightening a mortgage qualifying rules during a period of high inflation, many buyers retreated from the market. The return to readiness for purchasing requires considerable preparation on financial arrangements not to mention assuredness that inflation will not return. These two factors are particularly important for buyers choosing variable rate mortgages. While Canada’s inflation rate fell to 2.5% this past summer – very close to target of 2%, the Bank of Canada does not expect the national economy to pick up until second half of 2025. Price increases also peaked during the inflationary bubble, and while they trending down at present, it is still a question of affordability for many buyers waiting for further declines. The next Bank of Canada rate decision is scheduled for October 23 with many economists predicting another rate cut then. Prospective buyers should be preparing, however, for the pent up demand signalled with the growing supply of available homes, that a surge in buying could be triggered at any time, reversing the price declines see now. The combined benchmark price for a residential property in the Fraser Valley at the end of September was $978,800, a 1.4% decrease from the preceding month.

Please see my guide below to comparative benchmark prices in different areas of the Fraser Valley. The overall benchmark for each property type at the end of September is shown with a cluster of the three closest average prices on each side of the benchmark. The month-over-over-month price changes shows the relative fluctuation typical of recent market activity. For the most up-to-date information on any neighbourhood you wish to explore for purchasing, please give me call. And if you are considering listing you home for sale, I can prepare a Customized Market Analysis for your property and advise you on the optimal listing price in the current market. During the month of September, a single family detached home sold within 35 days on the market; townhouses sold on average within 30 days; and condominiums on average in 37 days.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of September was $1,501,100, a decrease of 1.5% from the preceding month. The extremities of this average were South Surrey/White Rock at $1,934,500 and Mission at $1,003,400. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $1,507,100, a decrease of 0.2% from the preceding month; Surrey at $1,509,500, a decrease of 2.1% from the preceding month; and Langley at $1,633,700, a decrease of 0.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $1,498,300, a decrease 0.8% from the preceding month; North Delta at $1,468,200, a decrease of 0.4% from the preceding month; and Abbotsford at $1,200,700, a decrease of 1.8% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of September was $834,400, a decrease of 1.4% from the preceding month. The extremities of this average were South Surrey/White Rock at $964,600 and Abbotsford at $657,500. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $850,600, an increase of 0.6% from the preceding month; Langley at $873,100, a decrease of 1.3% from the preceding month; and South Surrey/White Rock at $964,600, 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 $850,600, an increase of 0.6% from the preceding month; North Surrey at $754,700, a decrease of 0.9% from the preceding month; and Mission at $672,000, a decrease of 1.8% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of September was $545,000, a decrease of 0.2% from the preceding month. The extremities of this average were South Surrey/White Rock at $646,900 and Mission at $462,800. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $574,700, an increase of 0.6% from the preceding month; North Delta at $581,300, an increase of 1.0% from the preceding month; and Cloverdale at $605,300, a decrease of 0.2% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $469,000, a decrease of 1.4% from the preceding month; Mission at $462,800, an increase of 0.2% from the preceding month; and Abbotsford at $443,600, a decrease of 2.2% 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.