Velocity of price increases slows as homes still sell for $1.7m in Langley – Aldergrove Star

The price of a typical home in Langley remained above $1.7 million in March, but more homes are coming on the market in the area, according to data released Monday, April 4, by the Fraser Valley Real Estate Board. (FVREB).

In Langley, the benchmark price – the average price of a “typical” single-family home – reached $1,768,600, a 2.6% increase from the February benchmark price.

The price is now 38.2% higher than it was just a year ago, when a benchmark home in Langley sold for $1.27 million.

In March 2019, before the low interest rates and pandemic buying frenzy that began in 2020, a benchmark home in Langley cost $986,700.

Year-over-year price increases were similar for townhouses and condominiums in Langley.

A benchmark townhouse was selling for $877,600 in March, up 38.1% from $635,500 a year ago. A benchmark condo was selling for $599,800, up 38.2% from $434,100 the previous year.

In March 2019, benchmark townhouse prices were $487,800 and benchmark condos were $416,900.

It’s getting harder and harder for buyers to qualify for a mortgage, noted local realtor Tammy Evans.

She noted that condo prices today are townhouse prices a year or two ago.

In general, this forces people to consider smaller living spaces.

“I think the buyer’s expectations are somewhat lowered,” Evans said.

She knows people with two children living in two-bedroom homes that would not have been considered a few years ago.

Evans said no one seems to know what will happen next, but ventured a prediction.

“Do I see a dramatic correction? I don’t,” she said. But she sees a natural shift as more homes come on the market and interest rates rise in the coming year.

FVREB president Sandra Benz pointed to the fact that March marked the third consecutive month of increases in the number of homes for sale.

“We hope this will help slow price growth, which is good news for homebuyers,” she said. “Other encouraging signs, such as fewer open houses and fewer multiple offers, may help us achieve a more balanced market, but until the fundamental problem of lack of supply is solved, we will not see not that happening anytime soon.”

The need for increased supply is often presented as a need for new housing construction, with real estate agents, home builders and the provincial government all claiming to want to increase housing supply in recent years.

However, a recent report from the Union of BC Municipalities indicates that, based on available data, housing supply has kept pace with BC’s population growth over the past five years. .

The report says that British Columbia has built more housing in the past three years than in any three-year period in the past 20 years, and that no province or territory except the Yukon , has only experienced higher growth in the total number of dwellings over the past five years.

More than 40,000 homes were completed in British Columbia in 2021 and 2020, all-time highs, according to data from Canada Mortgage and Housing Corporation.

The report attempted to refute claims that municipal red tape is the biggest obstacle to building even more homes – it notes that skilled labor shortages and supply chain issues are also major factors, and that provincial and federal regulations also need to be updated.

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