The November housing market statistics from the Fraser Valley Real Estate Board are showing more of the same trends we’ve been experiencing over the last 4 months: enormous year-over-year increases in sales, historically low levels of active listing, relatively stable prices and very healthy buyer demand.
Despite a typical seasonal month-over-month reduction in sales volume of 10-15%, sales are 30-46% higher than this time last year. These increases put total monthly sales 11% higher than the 10 year average. These sustained sales increases, combined with new listings being down 13-16% month-over-month, saw active listings finish the month at only 84% of the 10 year average.
Over the past 6 months we have seen the month-over-month HPI Benchmark price decreases shrink to the point that detached homes even saw an increase last month. This month, the Benchmark price of a detached home held steady. Townhome and condo HPI Benchmark prices decreased again in November but by a diminishing amount– 0.3% and 0.1% respectively–hinting at growing price stability.
Demand remains strong for well-priced homes, indicated by an averall increase in sale price as a percent of original list price and a smaller-than-usual increase in days on market, considering the time of year. Average days on market in November was at 90% of the 10 year average.
What does This Mean for Development Land in Fraser Valley?
The buyer apprehension the development land market was experiencing due to market uncertainty has almost entirely vanished; most developers and investors we speak with are willing and ready to purchase their next site. Acquisitions are remaining careful and underwriting remains conservative, but demand is certainly back for residential development land in the Fraser Valley. The strongest demand is for multi-family land and we have returned to an environment where finding a suitable site is the challenge, especially if the buyer is after a readily developable townhouse site in Surrey or Langley.
Check out our curated summary of the Fraser Valley Real Estate Board’s November stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for November 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.