OCTOBER 2022 FRASER VALLEY PRE-SALE REAL ESTATE MARKET INSIGHTS
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In our November 2022 episode of the Fraser Valley Presale Pulse, President of MLA Canada, Ryan Lalonde, and Managing Director for the Fraser Valley, Brittany Reimer, dive into the latest pre-sale and resale data that are affecting the real estate market today.
SALES REMAIN FLAT THROUGHOUT THE FRASER VALLEY
The Fraser Valley market followed a similar trend as Greater Vancouver and was impacted by rising interest rates and economic uncertainty as buyers continued to hold on to purchases. This past month, we saw a shift in the pre-sale and resale markets. Although conditions were relatively stable, price and sales activity shifts were less than we saw over the months prior. Nevertheless, the numbers coming out of October indicate that market activity is starting to moderate from the sharp declines seen in previous months, even as overall demand continues to dampen. We saw just over 900 resales – a 54% decrease from the frenetic activity we saw in October 2021 and a 0.4% increase month over month. The composite benchmark pricing also fell 1.6% month over month.
In the previous months of September and August, we saw prices decline by 3% and 4.5% per month. Although overall demand in the Valley seems compressed, October's results suggest that the rate of decline is beginning to moderate. Sellers are resisting listing their properties in a down market, as listings fell 3.8% compared to September. The resale market landscape can be characterized as a struggle between Buyers and Sellers – as both sides strive to hold off on decision-making in favour of holding for a potentially better deal in the future. The Fraser Valley Real Estate Board has summarized the state of the market as "a holding pattern" in many ways as both buyers and sellers continue to grapple with an uncertain outlook.
RECENT PRE-SALE PROGRAMS TAKE CENTRE STAGE
Many pre-sale programs launched in early 2022 are now well-absorbed into the market. We're seeing developers choose to close their Presentation Centres waiting to release the remaining inventory closer to completion. This has opened the door for programs launched over the last quarter to take centre stage, supporting overall absorptions for active programs in the market.
There were a few notable projects active in the Fraser Valley throughout October. Highstreet Village by Wall Financial, located in Abbotsford, features 157 spacious townhomes and eight multi-phased mid-rise condominiums slated to bring over 700 homes to market over the life of its buildout. They hosted a realtor event at the end of October with just under 400 realtors RSVP. The program will then take suite request forms until Nov 6th. Like many auxiliary markets, Abbotsford has received a significant amount of interest over the pandemic and experienced heightened levels of appreciation across product forms. Still, many pre-sale products launched in 2021 and 2022 were limited – less than 500 homes in 2021 and less than 100 homes in 2022. The gap in launch activity, even in a shifting market like we're in, is likely what's helping drive attention to programs such as Highstreet. As a result, Abbotsford will continue to be a market to watch. If the inventory remains low, pre-sale programs that launch in its market will likely continue to see outsized interest relative to other markets.
Looking at Langley's market – Creekside is a collection of just 66 1, 2, & 3-bedroom residences offering both creek and town-side homes in Aldergrove's first master-planned creekside town centre. Aldergrove's Creekside is now marketing as 70% sold. They came in strong this past month with their 'Autumn Harvest Festival' a $20,000 incentive on all homes and a 0% assignment fee.
For the latest real estate market data on Greater Vancouver, watch the newest video featuring Ryan Lalonde and Suzana Goncalves.
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