Fraser Valley Real Estate Market Is Once More Divided With Some Areas and Property Types Lagging

After recovering somewhat in October, home sales in the Fraser Valley were down again in November, both month over month and year over year, according to Fraser Valley Real Estate Board (FVREB) figures released December 2. fvreb-stats-nov-2016-crop

The region’s residential resale transactions were nearly 15 per cent lower than in October and nearly 30 per cent down year over year. However, this is compared with the very high resales of November 2015 and marks a return to more “familiar territory,” according to the board.

Charles Wiebe, president of the board, said, “Through the past four months, we’ve seen a slow but steady return to a more normal market for sales and listing activity. Because of that, the pressure that was previously placed on buyers has been thankfully alleviated, and transactions can be made without the need for hasty decisions dictated by intense competition.”

New home listings and active listings were also both down on an annual and a monthly basis, as sellers remained hesitant in the face of uncertain market conditions.

The board’s benchmark home price (all housing types combined, including commercial and industrial) in November was $633,200, a slight 0.5 per cent fall from October’s $636,500, and an increase of 29.7 per cent compared with November 2015.

Sales and Listings

The Fraser Valley saw 1,111 home sales in November, down 29.3 per cent compared versus November 2015 and down 14.7 per cent compared with the slight recovery seen in October this year.

The annual decline was primarily led by a 47.9 per cent year-over-year drop in sales of detached home, of which just 472 exchanged hands in November. This was also down eight per cent from October. The average number of days a Fraser Valley detached home took to sell was 37 days in November, more than the 31 in October but the same as in November 2015. The shortest time recorded was 17 days in June this year.

After improving considerably in October, sales of attached Fraser Valley townhomes and other attached properties also fell in November compared with the previous month. Total attached-home transactions were down 25.2 per cent to 291 sales, which was also a year-over-year drop of 24 per cent.

Some 348 condo-apartment units exchanged hands in the Fraser Valley in November. That is a leap of 23.4 per cent compared with November 2015’s 282 units, but a drop of 14.7 per cent compared with October’s strong showing of 400 units.

New home listings were very similar to the same month last year, totalling 1,443 in November, up 0.1 per cent. However, this was a drop of 20.6 per cent compared with October’s new listings.

At the end of November there were 3,716 active MLS® residential listings, which is 0.7 per cent below November last year, and 10.3 per cent fewer than the 4,141 active listings in October.

The fluctuating sales-to-active listings ratio fell again to 22 per cent in November, after having risen to 24 per cent in October from 20 per cent in September. A balanced market is achieved when the ratio has been between 12 and 20 per cent for several months, according to analysts.

Benchmark Prices

The benchmark sale price of a typical Fraser Valley home (all residential property types combined) in November was $633,200, a very slight drop of 0.5 per cent compared with October, and an increase of 29.7 per cent over November last year.

As with the previous month, November’s slight month-over-month decline in the overall Fraser Valley benchmark home price was entirely caused by a drop in the typical price of a detached house, now at $860,800. This benchmark is 1.3 per cent lower than October, although still a rise of 30.5 per cent compared with one year previously.

The townhome or other attached property typical price increased 0.7 per cent over October, to $424,300. This was a rise of 33.1 per cent compared with November 2015’s $318,800.

The price of a typical condo-apartment in the region rose 1.7 per cent over the previous month, to $258,600, which was a boost of 24.9 per cent year over year.

Prices in the Fraser Valley differ by city, neighbourhood and property type. To see home prices, sales and listings broken down by community, please contact: Gino Pezzani.

 

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