FRASER VALLEY REAL ESTATE BOARD RELEASE - aUGUST 2019
Fraser Valley housing market continues to stabilize as sales pick up compared to last year
SURREY, BC – For the second month in a row, home sales in the Fraser Valley surpassed 2018 levels bringing the market closer to historical norms.
The Fraser Valley Real Estate Board processed 1,297 sales of all property types on its Multiple Listing Service® (MLS®) in August which represents a 12.3 per cent increase compared to the 1,155 sales in August of last year.
Darin Germyn, President of the Board added, “Inventory has stopped growing as demand has picked up, which is why we’re also seeing prices moderate. Last month, prices of typical homes in the Fraser Valley were on par with prices from six months ago.”
HPI® Benchmark Price Activity
Single Family Detached: At $954,100, the Benchmark price for a single‐family detached home in the Fraser Valley decreased by 0.3 per cent compared to July 2019 and decreased 5.4 per cent compared to August 2018.
Townhomes: At $521,400, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley increased 0.1 per cent compared to July 2019 and decreased 4.9 per cent compared to August 2018.
Apartments: At $409,200, the Benchmark price for apartments/condos in the Fraser Valley decreased by 0.1 per cent compared to July 2019 and decreased 7.7 per cent compared to August 2018.
With summer typically bringing lower sales totals, we’re cautiously optimistic that this uptick in activity signifies the slowdown that began in late 2018 is largely behind us. As sales continue to gain momentum in the residential resale market, we expect minimal price declines for the next 3-6 months with stabilization in 2020. Being as development land is ultimately based on new home sale demand, we would expect developers to slowly regain confidence in the marketplace, especially with the strong possibility of an interest rate decrease in late October. As the Federal election approaches quickly, we’re also beginning to see campaign promises from both the Conservatives and Liberals that would increase purchasing power and ultimately create more demand.