The Fraser Valley residential real estate market came roaring back in June! We haven’t seen this magnitude of growth in the Real Estate Board’s key metrics in years. Total sales volume doubled and nearly reached the 10 year average while active listings remained well below historic levels. Benchmark Prices saw continued month-over-month increases and competition among buyers drove sale prices up closer to list prices.
Month-over-month the quantity of townhouse sales jumped 102%, condos 113% and single family homes saw an incredible increase of 127%. This represents a 24-38% increase over last year and put total monthly sales less than 7% below the 10 year average for June.
The HPI Benchmark Price of a townhouse increased by 0.8% in June. Condo and single family both increased by 0.4% and all home types sit well above prices from June 2019.
Active listings increased in June by 10-16% depending on home type, but are still down as much as 28% over this time last year. Total active listings finished the month at approximately 80% of the 10 year average, which, with so much buyer competition, helps explain the increases in HPI Benchmark Prices.
Competition among buyers continues to build causing sale prices to edge closer to list prices and days on market to stay strong. Townhomes lead these metrics in the Fraser Valley with sale price as a percent of original list price increasing by 0.8% over last month and average days on market dropping by 19%.
What does this mean for development land in the Fraser Valley?
The rising home prices, resurgence in sales volume and resilience shown by the Fraser Valley market continues to restore faith in the market. In addition to the MLS data reported by FVREB, reports from new project sales centres are also showing healthy absorption rates. As a result, we have seen enormous increases in demand for land in the past 3-4 weeks.
Constrained land supply has developers hesitant to dispose of existing sites, concerned they won’t be able to replace it, which compounds the land supply issue. The recent spike in demand from developers and builders is already resulting in more competitive and compressed deal terms but land prices are holding steady, for the time being.
Check out our curated summary of the Fraser Valley Real Estate Board’s June stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for June 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.