October was another strong month for the Fraser Valley residential real estate market with a massive increase in sales, a decline in active listings and an increase in the benchmark price of a detached home – the first in 6 months.
Total sales in October were 14% above the 10 year average with year-over-year increases between 29% and 42% depending on home type. The increase in sales was accompanied by a decline in active listings across all home types, ranging from 5% and 9% depending on home type. Total active listings ended the month at only 89% of the 10 year average for October.
Average days on market held constant month-over-month for detached homes and townhomes but dropped dramatically for condos, which were down 17% over September. Similarly, sale price as a percent of original list price rose for all major residential home types, implying increased competition among buyers.
Despite the enormous increase in buyer activity, growing demand and stable active listings, – the HPI Benchmark price of townhomes and condos continued to decline slightly. Single family detached homes, on the other hand, increased 0.3% over September. This increase comes on the heels of 5 months of decreases, so we’ll be watching carefully to see if this shift is an anomaly or the beginning of a new trend. With that said, the typical winter lull of December and January may make it difficult to accurately identify if this is the beginnings of a change in pricing.
What does this mean for development land in the Fraser Valley?
Another month of strong residential resales, coupled with healthy absorption at new projects has encouraged a noticeable increase in demand for residential development land with most buyers eager to acquire their next site. Land prices have corrected, deal terms have relaxed and, despite the renewed eagerness, buyers are still exercising healthy amounts of caution. At the risk of sounding repetitive, the bulk of the requests we are receiving are for serviceable townhouse land.
Check out our curated summary of the Fraser Valley Real Estate Board’s October stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for October 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.