Homebuyers pulling trigger in Fraser Valley and beyond

B.C.’s real estate market is showing extraordinary resilience in extraordinary times, with wild increases in sales across the province.

“The Fraser Valley continues to be a magnet for families because of its affordability and lifestyle,” said Chris Shields, president of the Fraser Valley Real Estate Board.

“I think a lot more people are telecommuting as the work environment has changed.”

With head offices sprinkled around the region, people can live in Abbotsford and work for a company headquartered in Burnaby, he said.

Home sales came roaring back in the Fraser Valley in June, dragging prices of detached homes, townhouses and apartments higher.

More than 1,700 properties sold last month, a 113 per cent increase from May and a 31 per cent increase from last year at this time. Sales were just a shade below the ten-year average for June.

Very low interest rates and pentup demand drove much of the rebound, said Shields. Detached homes were selling after an average of just 31 days on the market.

People may also have been motivated to pull the trigger before tighter mortgage insurance rules took effect July 1, said Shields. People are also feeling more comfortable with social distancing and virtual tools in the sales process.

“June’s numbers clearly indicate that the market is functioning in this challenging new environment and we’re returning to more typical activity levels,” he said.

Prices rose the most for detached homes (3.6 per cent), followed by apartments (3.3 per cent) and townhouses (1.9 per cent).

People who were wary of buying in the Okanagan during the pandemic were picking their spots to buy in June. Townhouses that sold in the North Okanagan last month had been on the market for an average of 106 days, nearly 50 per cent longer than usual.

Likewise for Shuswap, where townhouses sold in June averaged 111 days on the market.

Prices for detached homes rose between one and 3.5 per cent across the entire region, while apartment prices were up between 3.5 and 4.9 per cent.

Home sales rebounded by more than 64 per cent in June compared to May in Greater Vancouver, though sales volume was about 20 per cent below the ten-year average. Steep price declines predicted by some pundits failed to materialize despite the disruption caused by COVID-19.

“Last summer home prices bottomed out after a three-year decline and since then they have levelled out,” said Colette Gerber, president of the Real Estate Board of Greater Vancouver.