The Fraser Valley Real Estate Board has published the September stats and it’s a slow start to the fall season. Sales continued to fall and with a typical seasonal injection of new listings, inventory has spiked relative to the extraordinarily low levels of the past two years. Active listings of condos were up 100% year over year and townhouses were up a similar 93%. Interestingly, however, even with such a dramatic surge in inventory these inventory levels were still only at 95% of the 10 year average for the month of September.
The increase in inventory may explain the continued rise in average days on market for all home types. Condos saw the greatest increase in September, up to 34 days from 27. Sale price as a percent of original list price is also down across the board, returning to between 95% and 97%, which is consistent with the 10 year average for the month of September (95.6% to 97.1% depending on product type).
Despite all of this, benchmark prices remain stubborn with the price of a typical Fraser Valley condo down only 1% month over month and a townhouse down only 0.4%. Detached homes decreased the most but they still only saw a 2% decrease month over month.
Are prices lagging behind the increase in supply or was supply so low the past two years that even these spikes will not have a dramatic effect on selling prices?
What does this mean for development land in the Fraser Valley? There appears to be an increase in supply of available development sites throughout the Valley. Prices remain sticky though, as one may expect when end-product pricing remains relatively constant. What appears to be changing, however, are vendor expectations – buyers are obtaining more reasonable due diligence time and healthier completion dates again.
Check out our curated summary of the Fraser Valley Real Estate Board’s September stats in infographics below.