The housing recovery in the Fraser Valley looks set to continue, with June home sales* up 25.1 per cent from a year ago and up 5 per cent from May, according to Fraser Valley Real Estate Board(FVREB) figures released July 3. Detached house prices hit a new high as well.
The entire Lower Mainland experienced a slump in home sales starting in 2012, but it started later in the Fraser Valley lasted several months after the Greater Vancouver region recovered. Healthy spring sales indicate that the end is in sight.
Ray Werger, president of the FVREB, said, "Recent news reports indicate that consumer optimism about real estate is at its highest level in a number of years, and we're experiencing that at the ground level.
"Over the last three months, we've seen a surge in demand, specifically for single-family homes and townhomes in most of our communities. Our number-one buyer is families with children and they're taking advantage of ultra-low interest rates combined with more affordable, stable prices in the Fraser Valley."
Sales and Listings
Last month's real estate sales were 7 per cent below the 10-year June average, but the highest for June since 2010.
Of the 1,492 home sales, 872 were detached houses, 378 were attached properties mostly townhouses and 242 were apartments.
Meanwhile, there's been no huge rush of new listings, and sales have kept the active inventory down. The sales-to-active-listings ratio is 20 per cent, which the FVREB considers at the top end of a balanced market.
Even so, some housing types are selling faster than others.
"We're essentially seeing two markets right now, so it's important to get advice dependent on what you're listing or buying," said Ray Werger. Competitively priced, midrange single family homes are being snapped up quickly, on average in a little over a month, whereas condos and higherend, executive homes in our region are taking as long as three months on average to sell."
Fraser Valley: What's Up, What's Down May/June 2014 June 2014/June 2013 Overall Home Sales +5.1% + 25.1% - Detached +2.5% +21.4% - Townhouse +16% +42.1% - Apartment -0.4% +16.3% New Listings -7.4% +16.9% Active Listings -0.8% -7.6%
MLS® Benchmark Prices
In June, the benchmark price of an average residential home detached, townhome and apartment combined in the Fraser Valley was 1.3 per cent higher than June 2013.
Detached house prices hit their highest level since the MLS® Housing Price Index (HPI) began in January 2005. At $568,600 the price rose 3 per cent compared to June 2013.
HPI benchmark prices for both townhomes and condos have fallen slightly since June 2013. They're being held back by the availability of newly built product (which doesn't usually show up on the MLS® and is not recorded in the real estate boards' monthly statistics).
On top of that, townhomes have become so popular that they're affecting condo sales. The Fraser Valley was the focus of a recent Urban Development Institute panel of real estate industry experts, including Colin Scott of Fifth Avenue Marketing, which markets new developments.
"We believe that the townhome is the new de facto single family home for this generation," he said. "We used to see first-time buyers [buying a condo] as a couple, getting married, getting pregnant and moving out with a baby screaming in about one year. Now what they're doing is they're buying into that townhome and staying there for seven or eight years.
"Townhouse prices have become so attractive that the hardest thing to market right now is probably a two-bedroom wood frame apartment between 800 and 900 square feet, because I can get a 1200-square-foot townhouse for $249,000 or $269,000."
Fraser Valley MLS® Benchmark Prices, % Change June 2014 May 2014 June 2013 Detached $568,600 +0.4% +3.0% Townhouse $298,300 +0.2% -0.3% Apartment $197,000 -0.6% -2.7%
For more details on local markets, see the Fraser Valley Real Estate Board statistics, broken down by community. FVREB comprises North Delta, North Surrey, Surrey, Cloverdale, South Surrey White Rock, Langley, Abbotsford and Mission.
* FVREB's overall sales numbers include all types of property including commercial, agricultural and industrial. The statistics given in this article are strictly residential, covering detached houses, townhouses and apartments.
See also:
Fraser Valley Set For Strong Household Growth
First-Time Home Buyers Driving Surrey Market
Vancouver Home Sales Up 29% Year Over Year: REBGV
BC Home Sales, Prices Predicted to Continue Rise: Report
