Market stats from the Fraser Valley Real Estate Board for December are showing signs of the typical winter lull, but not to the degree we would expect. Sales are down in all categories, which is typical as fewer properties are listed in December, but average days on market, sale price as a percent of original list price and benchmark prices all point to market strength and robust demand unusual for the month. Furthermore, the month-over-month reduction in active listings was far smaller than December 2016, which could indicate there was a push for transactions prior to January’s implementation of the new mortgage rules.
Condos hold the spotlight again as the highest performing product type with the greatest price increase, fastest absorption, and lowest decrease in sales.
The benchmark price for townhomes and condos experienced the largest month-over-month increase since July 2017 at 1.5% and 3.2%, respectively. The benchmark price for detached homes also rose in December but what is significant is not the size of the increase (0.4%) but the month in which it occurred as December has ever only seen an increase in this metric twice in the past decade. Each product type rounded out the year at the following benchmark prices for the Fraser Valley:
- Detached Home: $976,400 (up 14.2% year-over-year)
- Townhome: $513,100 (up 23.0% year-over-year)
- Condo: $388,600 (up 40.5% year-over-year)
It will be interesting to see if December’s activity cannibalized some sales from January or if we’ll see January continue to buck the usual seasonal trends.
Check out our curated summary of the Fraser Valley Real Estate Board’s December stats in infographics here.
View the Fraser Valley Real Estate Board’s entire stats package for December 2017 here.