RE/MAX Canada is anticipating healthy housing price growth in 2021
Move-up and move-over buyers are expected to continue to drive activity in many regions across the Canadian housing market.
Surrey and 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 by 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.
Surrey & 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.
Who’s Driving Demand for Fraser Valley Real Estate?
Move-up buyers are currently driving demand in the Fraser Valley real estate market. This is due to an uptick in the number of people coming from Vancouver.
The most popular property type among move-up buyers is 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.
Singles, Students, Young Couples
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.
Blended Families in the Luxury Market
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.
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.”
“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.”
– Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.
What about Vancouver Real Estate?
Vancouver real estate is expected to continue as a seller’s market in 2021.
A healthy supply is anticipated for the downtown core.
Low interest rates will continue to impact housing activity.
Trends are showing that Buyers are looking for larger properties in suburban areas, rather than buying in the downtown core in 2021.
Need more info on South Surrey Real Estate?
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