The residential market in the Fraser Valley just won’t quit, with September posting the highest quantity of sales ever recorded for the month. In addition to record sales, the Fraser Valley Real Estate Board’s monthly statistics are reporting historically low levels of listings, a drop in average days on market and widespread increases in benchmark prices.
The data is also pointing towards a continuation of the consumer trend toward single family with 47% percent of sales from July to September coming from detached homes compared to 43% over the same timeframe last year.
Single family and townhouse sales were up 6% to 8% over last month and 74% to 78% over September of last year. Condo sales increased 14% from August and 34% over September 2019. These enormous increases in sales resulted in total monthly sales coming in 65% higher than the 10 year average for September and, year to date, cumulative sales are 18% higher than 2019.
Active listings for townhouses increased 3.8% from last month but declined for detached homes and condos. Total active listings ended the month at only 86% of the 10 year average for September.
Lower levels of listings and unprecedented sales volume drove average days on market down 15-40% compared to this time last year, resulting in the average sale taking 30% less time to sell than the 10 year average for September. Sale price as a percent of original list price continues to climb as well, indicating increased competition among buyers.
The HPI Benchmark price of a detached home climbed another 1.3% this month putting it almost 9% over last September. Townhomes increased a more typical 0.6%, month-over-month. The average Benchmark price for a condo in the Fraser Valley held relatively constant but rose in Langley and many parts of Surrey by as much as 1.0%.
What does this mean for development land in the Fraser Valley?
Sustained record-breaking stats in the resale market are being bolstered by reports of remarkable increases in absorption at new projects throughout the Fraser Valley. It is hard to ignore the consecutive months of positive news and the land market is responding accordingly with massive demand for readily developable single family and townhouse land. This is leading to shorter deal terms, rising prices, and multiple offers in many situations.
We have yet to see the same spike in demand or notable price growth for wood frame condo land but history would dictate it is likely right around the corner. The condo segment is always last to move but does so once the increasing townhouse prices causes some consumers to be priced out of that market segment and relegated to purchasing a condo instead. The shift in demand from the townhouse market to condo market puts upward pressure on condo prices which, if sustained, is followed by escalation in the value of condo land.
Check out our curated summary of the Fraser Valley Real Estate Board’s September stats in infographics below.
View the Fraser Valley Real Estate Board’s entire stats package for September 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.