The Fraser Valley Real Estate Board’s (FVREB) statistics are out for the month of December and they’re almost unbelievable. The key metrics are showing continued acceleration, in a month that is historically one of the two slowest months of the year. December typically brings a reduction in Benchmark Prices, sales, and listings as well as sale prices that fall well below list price as buyer competition wains. December 2021 was nearly the opposite, a suitable end to what the FVREB is calling the busiest year in its 100-year history.
Month-over-month, sales volume did decline slightly (between 5% and 11%, depending on home type) but this is a fraction of the typical decrease for the month, between 20% and 30%. Total sales ended the month 51% higher than the 10-year average. Meanwhile, despite massive month-over-month decreases (37% to 45%), new listings managed to end the month 20% higher than the 10-year average.
Average days on market continued to decrease for townhomes and condos while sale prices continued to soar way beyond list prices. Townhome sale prices are averaging 108% of the list price and detached homes aren’t far behind at nearly 107%. This is unprecedented. We didn’t reach these figures even at the peak of the 2016 market.
Demand is off the charts (and we haven’t been able to solve the supply issue) so it was another month of massive increases in Benchmark Prices. Not only did we see enormous month-over-month price increases (approx. 3.5% for all home types), the magnitude of the price increases in December was larger than in November, suggesting that the market is still accelerating.
What does this mean for the development land market in the Fraser Valley?
The land market paused briefly in the second half of December, but as I sit here, in early January, it’s clear that was only driven by the holidays and the typical municipality/consultant closures which limited buyer’s ability to conduct due diligence. It’s full speed ahead, as we roll into what is feeling like an early Spring market.
Land values in readily developable areas are taking huge upward leaps every month. This is somewhat justified by the rapid escalation in end product prices, but the general lack of available land is also a factor as there is an enormous number of potential buyers chasing far too few sites. Most buyers are flush with cash to spend but many owners of development sites are apprehensive to sell for fear of not being able to replace their site, despite the ability to sell at what would likely be a new record price. This apprehension is shared by both mom-and-pop land owners and developers alike.
Check out our curated summary of the Fraser Valley Real Estate Board’s December stats in our infographic below.
View the Fraser Valley Real Estate Board’s entire stats package for December 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.