A housing supply shortage coupled with high demand continues to drive up property prices, as the Fraser Valley Real Estate Board (FVREB) reports unusually high November sales for the second year in a row.
The FVREB processed 1,972 sales of all property sales in November, its second highest sales figure of all time for the month, second only to second only to 2020’s numbers.
“Lack of supply continues to be the biggest factor impacting the market. To see sales increase from October to November, even slightly, is unusual,” said Larry Anderson, president of the board.
“Typically, as the weather changes and the holiday season approaches, we see sales start to decline, but not this year.”
This November’s sales were a 9.2 per cent decrease from 2020’s record numbers, and a 1.8 per cent increase from October’s sales numbers.
The board saw 2,096 new listings last month, a 4.2 per cent decrease compared to October and a 5.5 per cent decrease from November, 2020.
The 3,048 active listings FVREB had at the end of the month were a decrease of 11.6 per cent compared to October, and a decrease of 47.9 per cent year-over-year.
They say that their inventory levels would be more than double this in a typical November.
“We’re seeing a number of factors at play, including historically low interest rates fueling purchases, with buyers aware that rates are likely to increase next year,” said Baldev Gill, FVREB’s chief executive officer.
“Our province has seen a strong economic recovery in most sectors through this pandemic, and this strength bolsters home purchasing decisions.”
The FVREB has seen record-breaking sales the last two years, yet the housing supply has dwindled since July, decreasing every month except September. They have previously called it the “worst supply shortage in 40 years.”
It took an average of 24 days to sell an apartment in November, 16 days to sell a townhome and 24 days to sell a single-family detached home.
Benchmarks
Single Family Detached:
At $1,448,000 the Benchmark price for a single family detached home in the Fraser Valley increased 3.7 per cent compared to October and, increased 36.4 per cent compared to November 2020.
Townhomes:
At $740,100, the Benchmark price for a townhome in the Fraser Valley increased 2.7 per cent compared to October and increased 29.8 per cent compared to November 2020.
Apartments:
At $530,400, the Benchmark price for apartments/condos in the Fraser Valley increased by 3.2 per cent compared to October and increased 21.7 per cent compared to November 2020.