The August real estate market in the Fraser Valley bucked seasonal trends, posting record sales figures. This was despite the quantity of active listings being nearly half of the 10 year average for the month. As you may have guessed, the insatiable demand for housing, combined with the rock bottom quantity of listings has prices back on the rise, and it is only August – a month typically dampened by summer vacations.
New listings in August dropped again by 6-16% depending on home type, exacerbating the already low level of active listings. Active listings ended the month at only 52% of the 10-year average and approximately half of levels at this time last year.
Total sales for the Fraser Valley tallied to 135% of the 10-year average following month-over-month increases in all major home types. Interestingly, condo sales in August were 42% higher than last year, while townhouse and single-family sales were down 1% and 11%, respectively.
Typical for the height of summer, average days on market crept up by a few days for each home type but on average still sits at less than 70% of the 10-year average and at 7-20% lower than this time last year. Uncharacteristically for August, sale price as a percent of original list price increased for all home types, with single-family pushing up to 102.1% of the list price, townhomes up to 101.9% and condos nearing 100% again.
HPI Benchmark prices returned to their upward trajectory with month-over-month increases between 1% and 1.3%, depending on home type. Single-family detached now sits 31% higher than this time last year, with townhomes at 24% above and condos at 14% above.
What does this mean for the development land market in the Fraser Valley?
The residential development land market is experiencing a similar inventory challenge, with a severe lack of available development land. This, combined with the overwhelming confidence in the market, is maintaining upward pressure on land prices and compressing deal terms. Land values appeared to be flattening in July; however, that appears to have just been temporary. It’s not hard to point to a land transaction in most Fraser Valley markets that set a new record price for that land type in August.
I hope you were able to take a break in August because, if these most recent stats are any indicator, we’re in for another hectic Fall market.
Check out our curated summary of the Fraser Valley Real Estate Board’s August stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for August 2021 here.
This representation is based in whole or in part on data generated by the Fraser Valley Real Estate Board which assumes no responsibility for its accuracy.