FRASER VALLEY

Slow sales continue into autumn; fixed mortgage rates rise; prices softening

The Fraser Valley’s trending residential sales decline eased up in September, though still showing a slight decline. The Valley’s 941 home sold  last month amounted to 2.0% drop from the preceding month, following August’s steep 14% decline. September was also 4.0% below the same month one year ago. The autumn slow down comes as no surprise following a subdued summer as many  prospect buyers remain on the sidelines in an increasingly uncertain economic climate. As Canada races to fortify its economy against the onslaught of US tariffs, there are clouds on the immediate horizon for many small businesses as well a looming bleak outlook for increased unemployment. September marked the second consecutive month of an employment contraction, with a net loss of 68,000 jobs following 42,000 jobs lost in August, bringing the national unemployment rate to 6.5%. The weaking labour market takes some pressure off inflation, and the Bank of Canada maintains its policy rate at 2.25% while core inflation remains in the central bank’s target range of 2.0%. However, the Canada’s commercial banks have already raised their fixed mortgage rates, rising above the 4% level, moving ahead of the Bank of Canada’s next rate announcement scheduled for October 28. Five-year variable rates, linked to the central bank’s policy rate, are still available in a range of 3.5% to 4.5%. But there is currently no consensus among Canada’s large commercial banks on the economic outlook through 2027. For prospective home buyers, the Fraser Valley remains a buyer’s market, where it has been for the past two years, so there are excellent purchase opportunities at this time. New listings in September were up in 19% in September over August, with 2,818 newly listed homes bringing the total inventory at the end of September to 9,763. This is 31% above the 10-year seasonal average, making for an excellent selection of homes across all property types. Valley prices have also continued to decline, and buyers can find much greater affordability now with prices 7% lower than one year ago. At the end of September, the combined benchmark price for a residential property in the Fraser Valley was $861,300, a 1.0% decline from the preceding month.

In the section below, I present my monthly guide to benchmark prices in different areas of the Fraser Valley. Along with the overall benchmark average price for each property type, you will find a cluster of the three closest benchmark prices on each side average in different geographical areas. Monthly price fluctuations serve as indication of typical changes arising from recent sales activity. You should remember, however, that benchmarks are averages. I can provide you with the most up-to-date price listings for any neighbourhood, so b please give me call if you are interested in exploring any particular neighbourhood. And if you are considering listing your home for sale, I can prepare a Customized Market Analysis and advise you on the optimal listing price in the current market conditions. Across the Fraser Valley in September, the average number of days to sell a single-family detached home was 45 days; for condominiums, it was also 46 days; townhouses  sold on an average of 38 days.

Detached Homes

The benchmark price for a detached home in the Fraser Valley at the end of September was $1,300,000, a decrease of 1.5% from the preceding month. The range of the average extended from $1,612,500 in South Surrey/White Rock to $889,200 in Mission. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,304,100, a decrease of 1.4% from the preceding month; Cloverdale at $1,317,200, a decrease of 1.7% from the preceding month; and Langley at $1,471,100, a decrease 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 $1,252,600, a decrease of 0.8% from the preceding month; North Delta at $1,159,600, a decrease of 2.3% from the preceding month; and Abbotsford at $1,087,000, a decrease of 2.7% from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of September was $745,300, a decrease of 0.7% from the preceding month. The range of this average extends from $802,600 in Langley to $592,600 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $1,304,100, a decrease of 1.4% from the preceding month; Cloverdale at $754,300, an increase of 0.4% from the preceding month; and South Surrey/White Rock $797,100, a decrease of 2.8% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $780,400, a decrease of 0.2% from the preceding month; Mission at $618,000, a decrease of 0.6% from the preceding month; and Abbotsford at $592,600, a decrease of 0.7% from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of September was $461,800, a decrease of 0.9% from the preceding month. The range of the average was from $525,900 in South Surrey/White Rock to $370,200 in Abbotsford. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $479,100, a decrease of 1.3% from the preceding month; Cloverdale at $506,700, an increase of 0.2% from the preceding month; and Langley at $525,900, 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 $460,200, a decrease of 0.6% from the preceding month; Mission at $411,500, a decrease of 0.7% from the preceding month; and North Surrey at $398,900, a decrease of 0.6% 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.