Hot condo market continues to drive annual growth as prices keep rising
The Fraser Valley saw 1,879 property sales in August – all types, including residential, commercial and industrial – according to Fraser Valley Real Estate Board (FVREB) statistics released September 5.
That figure is 3% lower than July, but an annual increase of 10.9%, said the board.
In terms of purely residential sales in the region, the sector performed even better, with 1,704 homes exchanging hands in August. Although this figure is 2.3% below July’s home sales, it is 13.6% higher than one year ago, which makes it the second busiest-ever August for home sales on FVREB’s records, after 2005.
The Fraser Valley benchmark home price (all types combined) stands at $740,400, which is up 15.2% higher than August last year and another 1.8% increase in a single month, after July’s price jump of 3.8%.
New home listings last month, at 2,249 units, were down 21.5% compared with July, and 7.4% lower than August last year.
With the shortage of new supply and an annual increase in sales, this pushed total active listings down to 3,908, which is a monthly decline of 5.7% and a year-over-year drop of 7.2% – and that’s compared with what were considered to be low listings at the time.
Gopal Sahota, FVREB president, said, “It’s not surprising to see demand like this still so late into the summer; the Fraser Valley has never been a better place to live than it is now. Our communities are thriving, and there are still affordable options throughout our region. Also, it doesn’t hurt that removing the bridge tolls gives us even greater access to the Lower Mainland.”
Home Type Breakdown
There were 686 single-family houses across the Fraser Valley in August, down 8.9% compared with July. Although this was the only home type to see a monthly decline, its generous share of market meant this was enough to pull the region’s total home sales 2.3% lower than the previous month. Detached home sales in August were nevertheless 8.2% higher than August 2016.
Townhouses, duplexes and row homes saw 470 sales in August, up 14.4% year over year and a healthy 5.1% rise after July’s sluggish performance in this property type.
There were 548 Fraser Valley condos exchanging hands in August, just four units, or 0.7%, higher than July, and a leap of 20.4% compared with August 2016.
Continued scorching condo sales meant that total active condo listings as of the end of the month were down 13.6% compared with a year ago, at 649 units, which is also 10.6% down from the previous month.
Single-family houses and townhomes also saw month-over-month and year-over-year decreases in both new listings and active inventory as of the end of August.
Prices by Property Type
Home prices just keep rising in the Fraser Valley, with the benchmark price of a typical Fraser Valley home (all types combined) now at $740,400, 15.2% higher than August last year and a month-over-month rise of 1.8%.
Once again, this overall increase was driven largely by the ever-rising price of condos, which jumped 32.8% year over year and 2.4% in a single month. However, at $349,300, this benchmark price is still extremely affordable compared with Greater Vancouver.
The benchmark price for a detached home in the Valley rose 1% in a month to $976,000, which is 10.2% above that of August 2016.
At $491,900, the benchmark price for a townhome in the Fraser Valley is up 1.2% over July 2017, and a rise of 16.6% since August 2016.
For a visual overview of Fraser Valley real estate market statistics for August 2017, see our detailed infographic below.
To see home prices, sales and listings broken down by community, see the FVREB August 2017 statistics package.