10 Areas Where Home Prices Are Falling FAST In The Fraser Valley

The last year hasn't been so forgiving to the Fraser Valley. In today's report I'm going to be unveiling the 10 most hardest-hit areas and product types in the Fraser Valley. Starting with...

10. Grandview Heights (South Surrey) Townhomes

Grandview Heights (South Surrey) townhomes are down 8.5% year over year on the home price index. This one's actually surprising as townhomes have been the most resilient product type over the last couple years, and Grandview Heights is a highly desirable area.

9. Panorama Ridge (Surrey) Detached

Panorama Ridge Detached has struggled substantially over the last year, down 8.5% on the Home Price Index. This area and product type have experienced extremely sluggish sales and high inventory. This area has a lot of larger homes that need a lot of renovations. Therefore, you have homes that are priced at a higher price point that also need additional capital injections to make them ideally livable. Most buyers today want move-in ready and they dont want to have to worry about doing renovations.

8. Surrey Central Condos

Surrey Central Condos have taken an absolute beating this year, down 8.7% year over year, and I would also argue that it's probably a lot more than 8.7%. That being said, I think if you're a first-time home buyer, this is definitely an area that I would consider. The prices have gotten to a point where it is the most affordable new condo product by far. You have condos in Surrey Central now selling at Abbotsford pricing.

7. Whiterock Detached

Whiterock detached is down a total of 9% year over year. The average price of a home listed in Whiterock right now is $2.7M, and the median price is $2M. I think the issue here is there's just not a tonne of buyers out there right now for $2M+ homes.

6. Cedar Hills (Surrey) Detached

Cedar Hills Detached is down 9.2% year over year. This is a very similar situation to Panorama Ridge. You have a lot of bigger, older homes that need a tonne of renovations in this area.

5. Langley City Detached

Langley City detached homes are down over 10% year over year. My estimation as to why this is because Langley City is an investor/developer-focused area when we talk about detached homes. That being the case, there are pretty much no investors or developers looking to purchase in this market right now.

4. Bear Creek (Surrey) Detached

Bear Creek detached homes are down 10.6% year-over-year. Again, this is another area that's going to be similar to Panorama Ridge and Cedar Hills. A lot of 1990s to early 2000s homes that are 3,000 to 4,000 square feet big but need a lot of work. These homes aren't cheap to purchase, and they're also not cheap to renovate

3. Abbotsford-West Apartments

Apartments in West Abbotsford are down 10.7% year-over-year. Now I don't believe that all apartments in Abbotsford are down over 10%. However, I do believe the product that is down this much is likely your older 1970s to 1990s apartments. West Abbotsford has a lot of this product with bad floor plans located in bad stratas.

That being said, if you had a brand new two-bed, two-bath condo in West Abbotsford, it's probably not down 10.7%. The ongoing trend here is that the less desirable the product, the bigger the bloodbath.

2. Guildford Townhomes

Guildford townhomes are apparently down 11.9% year over year on the home price index. I don't believe this to be entirely accurate as Guildford Townhomes has very little sales volume, and that has the tendency to skew the data.

That being said, I could believe it because Guildford also has a lot of townhomes that were built in the 1970s and 1980s. Just like West Abbotsford, this type of product is the type of product that is getting hit the hardest right now.

1. Whiterock Condos

Whiterock condos are down 17.6% on the home price index, which is insane. Now again, this is a smaller subarea with not a tonne of product or sales. And again, that tends to skew the data.

However, I did go look at a couple of listings in Whiterock, and what I found was that you have older condos listed at $430,000 that are tax assessed at $560,000. Another similar story to West Abbotsford, this area is completely filled with older 1970s condos. A lot of these condos don't have in-suite laundry and underfunded contingency funds. Again, this is the type of product that you would see getting hit the hardest in a market like this.

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