The Fraser Valley residential real estate market is on a tear and while there is rising concern it may not last, October certainly didn’t show any signs of it slowing. Total monthly sales set another new record, benchmark prices continued their upward trajectory and active listings remained well below historical averages.
October sales across all home types hit 2,370 which is 71% higher than the 10 year average! The increase is comprised of a 10% month-over-month increase for townhomes and a 4% and 5% month-over-month increase for condos and detached homes. Remarkably, monthly sales of detached homes were 61% higher than October 2019 and, similarly, 55% higher for townhomes.
Month-over-month, active listings fell for condos, townhomes and detached homes between 5% and 9%, landing total listings at only 90% of the 10 year average. Contributing to this is another monthly drop in new listings ranging from 9% to 13%, depending on home type. Incidentally, new listings, year to date, are tracking almost perfectly with 2019.
Sale prices continue to edge closer to list price, indicating persistent competition among home buyers. Average days on market increased again for all major home types but this is typical for the time of year and aside from condos, homes are still selling 25% to 33% faster than this time last year.
Enormous sales volume, historically low levels of listings and strong competition among buyers continues to drive HPI Benchmark prices of townhomes and detached homes up in nearly every municipality in the Fraser Valley. Most notable is the 1.4% month-over-month increase in detached homes which represents a 10% increase over last year. While the condo segment appears to pale by comparison, the Benchmark price still remains over 7% higher than this time last year. Similarly, townhomes sit 5% above October 2019.
What does this mean for development land in the Fraser Valley?
The short answer is: enormous competition and rising prices for townhouse and single family development land throughout the Fraser Valley, particularly in Surrey and Langley. With a limited supply of developable land and a general reluctance to sell it, there are hordes of buyers chasing a limited quantity of sites. The past month has seen an increased frequency of conversations containing mild concern that this market trajectory may not last but purchasing behaviour has yet to reflect that concern.
The condo land market continues to lag mildly but not by much, as end product sales continue to strengthen and rising townhome prices widen the price gap between the two home types. If townhome prices continue their trajectory, it is only a matter of time before the selling prices of condos begin to rise and that segment of the land market heats up.
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 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.