If the February residential real estate statistics for the Fraser Valley are any indication of the Spring market, we’re in for a busy one! This month’s key metrics from the Fraser Valley Real Estate Board are tracking at – or better than – 10 year averages with another spike in sales, historically low levels of listings, plummeting days on market and significant increases in benchmark prices. It’s becoming apparent that the market is making an impressive rebound after the market correction experienced over the past 18 months. Other economic factors, including the Bank of Canada cutting the overnight rate by 50 basis points and the modification to the stress test, are certain to accelerate the market growth.
Historically, February reports large increases in sales over January and this year is no exception with increases as high as 50% for detached homes. Total sales for the month tracked almost perfectly to the 10 year average.
Active listings were up over January but still didn’t even reach 80% of the 10 year average for the month of February. There was clearly enormous demand for those listings as average days on market dropped off a cliff in February with detached homes selling in 37 days compared to last month’s average of 60 days. Likewise, townhomes and condos sold 26% to 28% faster.
With fewer new listings than typical for the month and such strong buyer demand, it’s no wonder Fraser Valley HPI Benchmark Prices were up 1.0% to 1.5% from last month. The areas that shifted the most, pulling the region’s average Benchmark Price of a detached home up, were Abbotsford and Mission with month-over-month increases of 1.9% and 2.6% respectively. On the townhouse side, Langley outperformed most municipalities with a 1.7% increase over last month. Similarly, sale price as a percent of original list price is quickly creeping up to 100% again with townhomes up to 98.3% and detached homes rising 1.5% to reach 97.4%.
What does this mean for development land in the Fraser Valley?
These extremely strong market statistics this early in the year are bolstering the already healthy level of market confidence held by developers and investors in the Fraser Valley. Purchasers of development land can expect stiff competition as they pursue their next site, particularly if they’re after townhouse or condo development land in Surrey or Langley. Opportunities exist but the list is shrinking quickly as developer purchases pull land inventory off the shelves.
Curiously, fear of broader coronavirus-driven shifts in the economy don’t appear to be tempering the demand or confidence in the Fraser Valley real estate market. It may over time, but we’re certainly not seeing it now.
Check out our curated summary of the Fraser Valley Real Estate Board’s February stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for February 2020 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.