The Fraser Valley Real Estate Board has published their stats for November 2018. As could be expected for this time of year, the market continues to soften and at a greater rate than October – a month which appeared to be exhibiting signs of leveling out in a few key metrics. Despite continued softening, November’s sales and inventory levels are consistent with historical averages.
The benchmark price of a typical detached home in the Fraser Valley fell by another 1.1%, reaching parity with the benchmark price in November 2017. Townhouse and condo benchmark prices continue to lose more of the gains they made in the past year with month-over-month decreases of 1.0% and 2.4%, respectively, but both home types remain 5-12% above benchmark prices from November 2017
Detached home sales fell 13% from last month, townhouses 21% and condos 2% putting total year-to-date sales for the Fraser Valley at only 70% of 2017. Comparatively, total active listings decreased 5% month-over-month, ending November at 6,328. This represents 91% of the average November inventory for the preceding 10 years.
Buyer urgency continued to wane as average days on market climbed again for all product types. The most significant increase occurred for condos which are now taking an average of 36 days to sell, up from last month’s 31 days. This is the first time since September that condos are reporting longer days on market than townhomes. Similarly, sale price as a percent of list price hasn’t been this low in the townhouse market since early 2013. We have to go back to December 2012 to find a month with detached home prices this far from original list price.
This month, the largest benchmark price decrease, the greatest increase in average days on market and one of the most dramatic drops in sale price as a percent of original list price all took place in the condo market. This was the last segment to take off so it makes sense it would be the last to decelerate.
What does this mean for development land in the Fraser Valley? A combination of increased supply of development sites, the time of year and declining housing market stats has many buyers apprehensive of making purchasing commitments. Demand remains strongest for well-located multi-family land that’s priced to market, particularly if the project will not be selling for 18-24 months as market sentiment is consistently more positive across a medium-term time horizon.
Check out our curated summary of the Fraser Valley Real Estate Board’s November stats in infographics below.