The price of a typical house in Langley has broken through the $1.5 million level for the first time, according to statistics released last week by the Fraser Valley Real Estate Board (FVREB).
A benchmark home in Langley cost $1.519 million in November, up from $1.457 million in October, a 4.3 per cent jump in prices in just a month.
That’s a staggering 36.3 per cent increase from the same month in 2020, when a benchmark home was going for $1.115 million.
It’s also almost double what a single family home in Langley sold for just five years ago. In November 2016, the benchmark price was $871,600.
Prices for townhouses and condos were also up. The benchmark price for a townhouse hit $753,000, up 2.6 per cent from a month before, up a full 30 per cent from the $579,200 it would have cost a year before.
Condos were selling for $506,900, up 4.2 per cent in a month and 27.4 per cent from the $398,000 they were going for in the same month last year.
In 2016, the benchmark price for a townhouse in Langley was $437,100, and for a condo it was $265,800.
Although prices are up sharply, sales in Langley were down compared to a year ago. There were 113 sales of single-family homes in Langley in November, down 21 per cent from the same month a year ago, and 94 townhouses changed hands, down 22.3 per cent year-over-year. Condo sales saw an increase, with 137 selling in November, compared to 127 a year before, a 7.9 per cent difference.
READ ALSO: Few homes for sale in Langley as house prices hover near $1.4 million
The other big change was that there were far fewer homes on the market at all.
There were 127 houses listed for sale in Langley last month, down 23 per cent year over year, just 71 townhouses were listed for sale, a 61.8 per cent annual decline, and a mere 118 listed condos, a 65.9 per cent drop.
Regionally, this November saw the second-highest sales in that month ever, while the supply of housing continued to be tight, according to FVREB president Larry Anderson.
“Lack of supply continues to be the biggest factor impacting the market,” Anderson said.
He also noted that sales were up slightly from October, which is unusual. In a normal year, the winter months around Christmas see the lowest sales activity, with people going house hunting again in the spring.
Langley realtor Leo Ronse said he’s concerned that some government responses, such as a proposed “cooling off period” for buyers, may do more harm than good.
Cutting red tape and fees for builders would help, Ronse said, by adding more homes.
He said that prices need to stop rising.
“It needs to level off, and have some normalcy,” Ronse said.
“We’re seeing a number of factors at play, including historically low interest rates fueling purchases, with buyers aware that rates are likely to increase next year,” said Baldev Gill, CEO of the FVREB.
There has been speculation for months about when the Bank of Canada may raise interest rates, which were slashed to the bone when the pandemic upended the economy in 2020.
He also cited B.C.’s strong economic recovery from the pandemic as a reason why there are still people buying homes.
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