Fraser Valley real estate to continue as a seller’s market in 2021, prices to increase by 2%
Fraser Valley real estate is expected to continue as a seller’s market in 2021. Fraser Valley saw an uptick in move-up buyers coming from Vancouver as many are looking for larger properties outside of the city. The average selling price in Fraser Valley increased 6.9% to $701,031 in 2020 (Jan. 1 – Oct. 31) compared to $656,067 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Fraser Valley real estate in 2021 is an increase of 2% to approximately $715,051.62.
Who’s Driving Demand for Fraser Valley Real Estate?
Move-up buyers are currently driving demand in the Fraser Valley real estate market, due to an uptick in the number of people coming from Vancouver. The most popular property type among move-up buyers are single-detached homes.
First-time homebuyers in Fraser Valley are typically young couples looking for condominiums and one-bedroom apartments ranging in price from $400,000 to $500,000. If interest rates remain low and people adjust to the new normal surrounding COVID-19, it may be easier for first-time homebuyers to enter the market, however, this is not a guarantee.
The move-up buyer market in Fraser Valley is driven primarily by families. There has been some hesitation from move-up buyers looking to enter the market in 2020. Some potential buyers are more hesitant because they are comfortable where they are at but are still moving ahead with a purchase.
The condominium market in Fraser Valley is currently driven mostly by single homebuyers, students, and young couples. The average price for condominiums in Fraser Valley in 2020 was $408,403. The Fraser Valley condo market has seen a falling demand for condominiums because of COVID-19, which is expected to continue into 2021.
The luxury market in Fraser Valley has been driven primarily by established families, with the typical starting price for a luxury home in Fraser Valley being approximately $1,500,000. Pre-pandemic, luxury housing prices were lower, but due to the pandemic, many people are looking for larger homes with more space, which has resulted in an active luxury market. Many families that are purchasing luxury properties are blended families or families made up of multiple generations.
Fraser Valley’s Hottest Neighbourhoods
Fraser Valley’s top selling neighbourhoods in 2020 were City Centre (Surrey) and Chilliwack, as well as Abbotsford. Surrey has become urban, while Chilliwack is seeing first-time homebuyers and people needing more space. Chilliwack is expected to continue to be the most popular neighbourhood in 2021.
Fraser Valley New-Home Construction
Fraser Valley’s new-home construction market is low compared to demand and could use more new-construction builds to meet the current demand. New-home sale prices are like those of re-sale properties in Fraser Valley.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
.Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”
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