The strong residential market in the Fraser Valley carried on into December, showing little sign of the typical seasonal trends. Instead, December’s statistics from the Fraser Valley Real Estate Board are reporting enormous year-over-year increases in sales, low active listings, increases in benchmark prices and steady buyer-competition.
One statistic that stayed with the seasonal trend was a month-over-month decline in sales, but that didn’t keep sales from finishing as high as 71% above December 2018 for single family homes. Townhouses and condos also saw incredible year-over-year increases at 34% and 47% respectively. Total sales finished the month 19% above the month’s 10 year average.
A lower than normal number of new listings (down approximately 30% over November and only 80% of the 10 year average) contributed to significant reductions in active listings for all major residential home types. This likely contributed to sale price as a percent of list price increasing by 0.9% for detached homes and holding flat for townhomes, which is also unusual for the month of December. Days on market increased slightly but still only reached 92% of the 10 year average for December.
This healthy buyer demand coupled with low active listings contributed, at least in part, to an uncharacteristic month-over-month increase in benchmark prices. The HPI Benchmark price of a detached home and a condo increased by 0.2% and townhome prices remained flat from November.
What does This Mean for Development Land in Fraser Valley?
These strong market statistics are fueling the developer confidence that has been growing over the past 4 months, pulling nearly every developer and investor off the sidelines to search for their next land acquisition. We are even beginning to see multiple offer situations on readily developable multi-family land opportunities in the Fraser Valley. This resurgence in demand has brought us back to the days where the challenge is simply finding the developable land.
Check out our curated summary of the Fraser Valley Real Estate Board’s December stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for December 2019 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.