December 2023 Fraser Valley Real Estate Market Insights
Welcome to the December 2023 Fraser Valley Presale Pulse episode, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, presale, and resale trends over the last 30 days affecting the local real estate market across the Fraser Valley. In this month's episode of the Presale Pulse:
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Affordability and Resilience: Key Launches in Fraser Valley's Presale Landscape
In November, the Fraser Valley presale market exhibited notable activity with seven launches that diversified the market offerings, including a concrete tower and wood frame condos and townhomes. Despite the challenges posed by market seasonality and higher borrowing costs, certain launches stood out. Highstreet Village, for instance, continued its success by releasing its fourth building to VIP registrants, generating substantial demand with close to 100 suite request forms for the 65 available units. The affordability of Highstreet Village, exemplified by a deposit structure that removes barriers to entry, attracted buyers even in a sluggish market. This trend was mirrored in the launch of Walnut Park by Quadra Homes in Langley in early December, where they secured 50 firm deals with 23 in recession, showcasing resilience in demand. The 5% deposit offered by Walnut Park, though a risk to the developer, provided a significant advantage for market engagement. These instances underscore the enduring demand for homes, emphasizing the importance of perceived value and relationship-building in the success of presale projects during challenging times.
Fluctuations in the Fraser Valley Resale Market
In November, the Fraser Valley resale market experienced a decline in sales activity, with 891 sales reflecting an 8% decrease from the previous month but a 13.8% increase year-over-year. Despite this annual increase, November marked the second slowest in terms of sales activity within the past decade, currently standing at 30.4% below the ten-year seasonal average. The impact of interest rate hikes in June and July continued to play out, with purchasers adopting a cautious approach, and waiting for more favourable conditions before reentering the market. On the supply side, there were 6,254 listings, a 5% decrease from October but a 17.7% increase year-over-year. New listings in November totalled 2,030, representing a 20% decrease from October, likely influenced by market seasonality and homeowners opting not to sell during the holidays. Despite this decrease, the figure remains 16% above the ten-year average for new listings in November. Prices reflected the sales slowdown, with benchmark pricing for all product types at $997,085, indicating a 1.1% decline from October. Single-family homes and townhomes contributed to the drop in home values, while condominiums remained relatively stable. Benchmark values are currently 16.1% below the peak pricing in March 2022 but up 3.2% year-over-year.
Presale Projects Covered in this Episode
- Lodana - Circadian Group
- Highstreet Village - AB Wall and Fifth Avenue Properties
- SkyLiving - Allure Ventures
- Piano - Concord Pacific
Links mentioned in this episode:
- December 2023 Presale Pulse Report
- MLA Advisory Services and Sample Reports
- Contact Advisory
- Subscribe to MLA Newswire
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