Fraser Valley real estate market

full steam ahead in January;

In a month that is usually one of the quietest in real estate, Fraser Valley’s

market continued at a breakneck pace, producing the strongest January sales

on record as well as a modest uptick in new listings.

The Fraser Valley Real Estate Board processed a total of 1,718 sales of all

property types on its Multiple Listing Service® (MLS®) in January 2021, an

increase of 76 per cent compared to January 2020 and 18 per cent fewer then

were processed in December 2020. Sales in January set a new, record high

for the month; 72 per cent above the 10-year average, and 28 per cent higher

than the previous record of 1,338 sales set in January 2016.

“Buyers are very motivated right now,” said Chris Shields, President of the

Board, “Lending rates are the lowest they’ve ever been, your housing dollar

goes further in the Fraser Valley and we’ve seen a societal shift in the last year

in how people value their homes. People are asking us to find them more

space.

“I am working with a young couple who want and are able to move up – from

a condo to a townhome – due to interest rates and the equity they’ve gained

over the last couple of years. The challenge is supply. It improved slightly in

January, but we’ve got a long way to go to replenish our housing stock. It

remains a seller’s market.”

The Board received 2,784 new listings in January 2021, an increase of 26 per

cent compared to January of last year. Total active inventory for the month was

4,210, down 18 per cent from last year’s 5,143 active listings, and still 30 per

cent below the 10-year average.

Baldev Gill, Chief Executive Officer of the Board, added, “Homeowners may

be reluctant to sell because of concerns about buying and selling safety

protocols; or the challenge of finding a new home to buy. The industry has

worked hard to make it as easy as possible for you to thoroughly evaluate

homes online first and then, for serious, final consideration, strict regulations

are in place for in-person viewing.”

“And note, we’re already seeing an improvement in supply levels compared

to December, a trend we anticipate that will continue as spring approaches

bringing what is typically one of the busiest markets of the year.”

In January 2021, the average number of days to sell a single-family detached

home in the Fraser Valley was 35, compared to 60 days in January 2020; 28

days on average to sell a townhome and 37 days for apartments, compared to

47 and 49 days respectively, in January of last year.

MLS® HPI Benchmark Price Activity

Single Family Detached: At $1,106,500, the Benchmark price for an FVREB single-family detached home increased 2.5 per cent compared to December 2020 and increased 15.2 per cent compared to January 2020.
Townhomes: At $580,800, the Benchmark price for an FVREB townhome increased 0.8 per cent compared to December 2020 and increased 7.2 per cent compared to January 2020.
Apartments: At $439,800, the Benchmark price for an FVREB apartment/condo increased 0.3 per cent compared to December 2020 and increased 4.4 per cent compared to January 2020.