Fraser Valley Condo Assignment Listings Hit Record High

Steve Saretsky -

The building boom which has transpired across Greater Vancouver and into the suburbs of the Fraser Valley remains rather intriguing. As is typical in housing booms we typically see a drive to qualify, a phenomenon where buyers get priced out of the city and are forced to drive further out in order to qualify for a purchase. Further, investors or speculators who see lower or more affordable prices begin to speculate on the next boom town.

As we can see in the Fraser Valley, prices were stagnant for years before seeing a meteoric rise over the last few years.

Fraser Valley condo prices
MLS benchmark price for Fraser Valley Condos

However, following a couple years of unprecedented price growth, Fraser Valley condos have begun their descent, dropping 5.1% year-over-year in March.

Fraser Valley condo prices
Year-over-year change in Fraser Valley Condo prices

This drop has been spurred on by a large drop in sales, but also a big increase in inventory, particularly in the new construction segment where a building frenzy is still currently underway. New construction condo inventory listed for sale on the MLS has risen 47% year-over-year in March and currently sits at the highest total since August 2013.

New construction condo inventory
New construction condo inventory in Fraser Valley.

A large chunk of this inventory is investors trying to exit their pre sale obligations. Monthly assignment listings are on the rise, hitting record highs. A theme we have not seen since the last boom just prior to the financial crisis. Developers and investors alike would be wise to proceed with caution.

Fraser Valley assignments
Monthly Assignment listings in the Fraser Valley


Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022