Affordability for homebuyers continues to drive real estate decisions in Metro Vancouver and the Fraser Valley, according to Re/Max Canada.
An Aug. 22 report from the real estate firm says prices for detached houses in Metro Vancouver, the Fraser Valley and Toronto saw upward momentum in the first half of the year, but average prices fell short of those seen last year in most neighbourhoods.
The report tracked average price and sales activity in the freehold segment in 82 districts within the Toronto Regional Real Estate Board, Real Estate Board of Greater Vancouver and the Fraser Valley Real Estate Board.
Roughly 93 per cent of detached homes across all three regions declined in value in the first six months of the year compared to the same period in 2022. Nine communities in Metro Vancouver and two in the Fraser Valley saw single digit decreases in this period.
Only two markets within Metro Vancouver saw increases in prices, with the Gulf Islands reporting a 13 per cent increase and West Vancouver-Howe Sound by 1.9 per cent.
Many potential buyers who are driven by affordability are looking for detached homes that have the potential to build equity, said Elton Ash, executive vice-president of Re/Max Canada.
“When you get out to the Fraser Valley you have that opportunity, and so the combination of potential and affordability is really what has been the interesting aspect of this report. And how the Fraser Valley and Langley specifically is benefitting from that,” he said.
The number of detached home sales in Langley increased by 7.9 per cent in the first six months of 2023, compared with the same period in 2022, according to the report. This is the only community within both the Fraser Valley and Metro Vancouver that saw an increase in unit sales.
Homebuying in the region increased in the second quarter of 2023 when compared to the first quarter of the year and the last quarter of 2022, said Ash. However, he said the most recent Bank of Canada rate hike in July has caused instability from a buyer perspective.
“As we look forward, instead of seeing a seasonal increase to market activity in mid-September through October, we're bound to see pretty much balanced market conditions,” he said.
“From a pricing perspective, I don't see prices going up. I don't see them dropping either because there's such slow inventory … It's an unusual set of circumstances compared to historical norms when you go through these cycles.
The report says buyers looking for a foothold in the Vancouver market are driving demand for detached homes in the Gulf Islands, with growing appeal from buyers who work remotely.
Preferences towards work from home are influencing homebuying in the Fraser Valley and Langley where buyers can save without having to worry about long commute times, according to Re/Max.
– With files from The Canadian Press
