Fraser Valley real estate prices continued to rise this fall as the number of buyers continued to outpace the number of sellers. Although the reported 3.9% more sales in October than September, home sales decreased a staggering 18.2% year over year for the month of October. However, the catalyst behind the yearly decrease in listings is not buyers’ willingness/ability to buy, but rather a drastic decline in new listings. As the Canadian economy recovers from the damage caused by the Covid-19 pandemic, supply shortages and loose monetary policy are causing price increases for all goods and services. The Fraser valley real estate market is no exception. The number of new listings decreased 29% year over year for the month of October and decreased 6.6% from one month prior. When considering the total number of homes on the market, the month of October saw homes on the market decline 49.8% year over year. Overall, home sales are slowing down slightly compared to a year ago, but not enough to keep up to the drastic decline in homes on the market.
This strong decline in home listings has placed significant pressure on home prices, making it a challenge for new and first-time buyers. The average price for a single family detached home was $1,396,700 in October an increase of 33.4% year over year, and a 2.5% increase compared to the month prior. Town homes increased 26.6% in the last year, with a 1.9% increase compared to the month prior. Their average price was 720,500. Apartments increased 18.3% year over year and increased 1.9% as well compared to the month prior. Their average selling price was $514,200 in October. The drastic increase in home prices over the last year happened because the supply of homes could not keep up to the demand for homes in the Fraser Valley. This has left buyers with drastically diminished options when it comes to buying a new place.
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