Can you believe this market we are having? With the most sales EVER for the month of September, 2020 is certainly leaving it's mark on the real estate market.
For four months in a row the market has performed much higher than expected as demand for housing continues to grow in the Fraser Valley. September 2020 saw 2,102 sales, which exceeds any September in the history of the Fraser Valley Real Estate Board. It has only been 11 times that there have been more sales in a single month, and all 11 of those months happened between 2015 to 2017. September 2020 saw 66% more sales than September 2019 and 9% more than August 2020, and was 77% higher than the 10 year average for the month of September.
The trend of the attached homes dominating the marketplace that we have seen over the last several years appears to be on a decline as 47% of sales in the Fraser Valley were detached homes. This is also reflective in the average increase in prices as single family homes (also includes homes with a suite or two) have gone up 8.7% in the last year! Apartments are second with a 4.7% increase and townhomes have gone up an average 4% year over year.
One important difference I have noticed between this market and the crazy market of 2015-2017, is that things are going a little bit slower now than they were back then. Homes are averaging about 31 days on the market before selling, where 2017 was seeing averages of below 14 days in some months. In my opinion this is certainly a good thing, as everyone has time to breathe and think things over in order to make a good decision without feeling panicked or rushed. Multiple offers are still happening on some properties, but it is not happening on most homes and certainly not inflating prices the way it did before.
The angle of the price curve is also much flatter than it was in 2015 through 2017, which likely is a sign of upcoming stability. I did predict that September was going to be a more normal month, but as I'm sure you've gathered by reading this far, that was certainly not the case. I do still believe that we will see stability in the market in the coming months as we head into winter. I also expect the spring market to be a very healthy market where we will likely see another 4-5% increase in price which is pretty close to the average annual increase most markets like ours expect to see in any given year.
Interest rates are still historically low making it more and more attractive for buyers to get into the market, and this is also not likely to change into the near future. Whether you are buying or selling, it could be a great time to make that move happen. If you are thinking about making a move, let me know and we will start making a plan, even if you are thinking you may want to move in a year or so it is never too early to start planning!
I would love to hear from you with any questions you have, whether it be about the market as a whole, or a specific area and property type, I am always here for you. If you are thinking, even a little bit, about buying or selling, give me a call or get in touch with me today! I will never pressure you into making a decision one way or another, instead I believe in giving you the facts you need to make an informed decision yourself.
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