The Fraser Valley real estate market continues to recover from the tightening of mortgage rules introduced in spring of 2012. The effects of tougher credit rules took hold last July and ushered in a year of historical lows for sales, and noticeable decreases in listings. Then, this July, sales started picking up again and coming within range of the 10-year average.
September sales continued that trend and gave us the biggest year-over-year increase so far in 201338.7 per cent for residential properties and 32 per cent for all properties, including commercial, industrial and agricultural.
View year-over-year charts for sales, listings and months of inventory.
Ron Todson, president of the Fraser Valley Real Estate Board says, "It can take a year or more for the market to recover from regulatory changes such as last year's tightening of mortgage rules introduced by the federal government. Although we are seeing evidence of first-time buyers returning to the market, we have to keep in mind that it is more challenging now for them to get financing, so although we're witnessing a recovery to a balanced market, it is gradual."
Sales and Listings
Throughout the Fraser Valley, 1,003 houses, townhouses and condos* sold on the MLS® in September, compared to 723 in September of 2012a 38.7 per cent increase. Residential sales dropped by 11.8 per cent from August's 1,136. September usually sees an increase in sales and listings because it's traditionally the beginning of a "second season." But this year the market was stronger than usual during the summer.
New listings increased from 1,948 in August to 1,998 in September. Meanwhile active listings decreased from 7,393 in August to 7,264 in September. This is the lowest number of homes for sale since March. Normally a decrease in active listings would be the result of increased sales, but sales dropped from month to month. That indicates that some property listings expired or the listings were taken off the market.
See detailed Fraser Valley Real Estate Board statistics, broken down by community.
What's Up, What's Down - At a Glance Sept/ August 2013 Sept 2013/ Sept 2012 Overall Home Sales -11.8% +38.7% - Detached -11.3% +35% - Townhouse -10.5% +65.2% - Apartment -14.5% +22.1% New Listings +2.6% -5.6% Active Listings -1.8% - 6%
Fraser Valley real estate sales y/y september 2013
Fraser Valley y/y real estate sales September
Fraser Valley active listings y/y september
Fraser Valley real estate months of inventory y/y september
MLS® Benchmark Prices
Benchmark prices have been stable despite a year's worth of lower-than-normal sales and inventory levels.
Fraser Valley MLS® Benchmark Prices, % Change Sept 2013 Aug 2013 Sept 2012 Detached $552,900 +0.3% +0.6% Townhouse $296,200 -0.7% -1.4% Apartment $203,100 -0.4% -1.9%
For detached houses, benchmark prices are up in all FVREB areas over six months ago. The areas with the biggest six-month increases2.5 to 2.9 per centare North Delta, Cloverdale, South Surrey White Rock, Langley and Mission. Compared to a year ago, all areas except South Surrey White Rock have seen MLS® benchmark prices remain at or slightly above September 2012 levels.
Benchmark prices for townhouses have dropped slightly over six months ago, except in Cloverdale and Langley. In most cases the drops have been negligible, but Abbotsford prices fell by 4.5 per cent in six months and 5.6 per cent in one year. Townhouse prices were down in general over a September 2012, with only North Surrey, Cloverdale and Langley on the positive side, but, again, we're talking about differences of 2 per cent above or below zero.
Apartment benchmark prices have fallen from a year ago everywhere but Cloverdale and South Surrey White Rock. Over six months, they've risen in North Surrey, Surrey, Cloverdale, South Surrey White Rock and Langley. Abbotsford, again, had the largest price drops, with benchmark condo prices 10.1 per cent lower than six months ago and 8.2 per cent lower than a year ago.
Slow and steady recovery is the big picture for the Fraser Valley right now.
You can view the full FVREB statistics package for September, 2013 here.
Greater Vancouver Real Estate Market: September 2013
