It's been a tough few years for potential first-time home buyers in Metro Vancouver and the Fraser Valley. Runaway price increases during the pandemic, coupled with historically low active listings, meant fierce competition for decent properties. Thankfully, for first-time buyers, market conditions may be shifting in their favour.
There is less demand (and therefore competition) to buy properties at the moment. However there is still an issue of relatively low inventory of active listings, although it is better than in early 2022. Plus mortgage costs are now higher. The offset is that prices have come down meaningfully in most Fraser Valley markets including North Delta, Surrey, Langley and Abbotsford.
High prices mean that first-time homebuyers may have to really stretch to find something affordable. Having said that, there are at least a couple of good possible options for buyers. If your goal is to get on the property ladder then you have to start somewhere.
I would suggest getting a foothold on the ladder should be one's first goal. From there, build equity in your home for a few years, then consider trading up. For example, there is nothing wrong with starting in an apartment or condo. A few years later, you may be in a position to use your built-up equity to trade up to a townhouse. This will give you more space and privacy. Depending on your work and life circumstances, you could consider trading up again, to a detached house. The most important thing is taking the first-step to get a start in the market.
The good news right now, at the time of writing, is that there is hope and there are options for buyers. If you need a lower price point to get started then consider the following for affordability:
Prices as of January 2023
1) Abbotsford Condos: Average Price $367,000
2) Mission Detached Houses: Average Price $848,000
3) Chilliwack Detached Houses: If you can go further East, then there are plenty of single-family detached houses in the $600's to $700's range.
All real estate is local. There may be pockets of opportunity for new or first-time home buyers in the Fraser Valley. Contact me today to discuss options, if you are in the market for an entry-level home. I can help find you a home within your budget.