November Statistics are out from the Fraser Valley Real Estate Board and it’s another extended Fall market rather than the historically expected beginning of a winter lull. Sales remain incredibly strong and competition among home buyers is fierce, resulting in massive increases in Benchmark Prices, commonly cited to be driven by a general lack of housing supply.
Total Sales in November increased for both detached homes and condos. Given recent months, this trend isn’t surprising. The anomaly, however, is that this is happening in a month that historically experiences double-digit declines in sales, while active listings didn’t even reach half of the 10-year average. Townhome sales pulled back slightly which can be partially attributed to the quantity of active townhouse listings being down almost 63% over this time last year.
What’s astonishing is that average days on market continues to fall and sale price as a percent of original list price continues to rise all while home prices skyrocket. For context, the 10-year average for sale price as a percent of list price in November is 96.8%; however, this November it was 102.4% to 105.8% depending on home type. Those are peak Spring market figures.
The HPI benchmark price for a detached home rose by 3.7% in November, with similarly increases seen for condos at 3.2% and townhomes at 2.7%. Langley continues to outperform the averages, posting a massive 4.3% increase in detached homes and 4.2% in condos.
What does this mean for the development land market in the Fraser Valley?
In short, the frenzy we saw in September and October has spilled into November and doesn’t appear to be pulling back, even as we roll into the beginning of December. However, buyers are looking to obtain longer due diligence periods to cover the blackout period over the holidays, but sentiment is persistently bullish and land prices continue to rise at what feels like a weekly rate. It’s an exciting market to play in but certainly stressful if you’re trying to purchase land.
Additionally, the sustained market strength along with the massive success of a handful of new high-rise project launches in Surrey City Centre and Willoughby caused a noticeable increase in appetite for high-rise development sites. Consequently, land prices in this segment are rising and deal terms are being compressed.
Check out our curated summary of the Fraser Valley Real Estate Board’s November Stats in our infographic below.
View the Fraser Valley Real Estate Board’s entire stats package for November 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.