What a year! 2021 was the busiest year in 100-year history in terms of number of sales processed. It beat out 2016’s hot market by 15.5% more sales. What is interesting is that even though we had the busiest year in 100 years, we still cannot keep up with the demand. That speaks volume about how fast buyers are snapping up properties.
Across all levels of homes (detached, townhome and condos), the valley is generating sales/active ratios of over 100%. Let me remind you that any sales/active ratio over 20% is classified as a “Sellers Market”. Looking at Fraser Valley townhomes for the month of December, the sales/active ratio was 216%. I have never seen numbers this high – we are in an extreme sellers market…we literally cannot keep supply on the shelves.
Detached homes in the Fraser Valley increased 39% in price over one year. Now, unfortunately I cannot see into the future, but I would be hard pressed to find the market continuing to increase at this pace. I for one hope it does not. It is not healthy for this type of price growth in such a short period of time. Even though rates are low and it is cheap to borrow money, I do not think anyone would have predicted growth of that magnitude in one year.
Townhome prices have increased 32.9% in one year, and condos increased 25.3% in one year.
Predictions for 2022
I think that condos are going to thrive in 2022 and here is why:
The price gap between detached homes and townhomes is large. Fraser Valley detached homes have a benchmark price of $1,500,000; townhomes have a benchmark price of $765,800. That is a price difference of $734,200. Alternatively, the gap between townhomes and condos is only $216,600. For those that want to become home owners, the reality is that more and more buyers will have to turn towards condos simply due to affordability.
The Inside Scoop
I listed a 2 bed / 2 bath townhome in Langley (Willoughby). The home was build in 2003. We listed the home at $769,900 and after one week of showings, we sold for $840,000. That same townhome would have sold for around $525,000 a year ago. It seems surreal that prices in Langley for a 2 bedroom home have hit this price level.
Due to the high demand that I see daily, I do not foresee prices falling off. I do however hope that the rate at which prices are rising slows down and that more supply becomes available to alleviate upward pressure on pricing.