How the Fraser Valley land market is reacting
The Fraser Valley development land market was steady in March, interrupted only mildly by Spring Break vacations in the second half. Demand is extremely high for development land as prevailing sentiment holds that the future of the market is bright, supported by consistent positive trends in the resale and new home markets.
In March, the lending environment began to show signs of life, with a handful of brokers and developers sharing experiences that there is once again capital available for land financing. This is a stark contrast to just a few months ago when borrowers were sharing fears of truly not being able to obtain financing. I don’t mean financing was difficult or simply required less desirable private loans, there were borrowers who could not obtain any financing options. Obviously, interest rates remain elevated, and we are hearing lender’s scrutiny is at an all-time high but this shift is bolstering confidence among developers and investors as they pursue their next acquisition. The result is increased competition for well-priced, well-located development sites.
We are, unfortunately, back to struggling to find available developable land in the Fraser Valley. The lack of availability is a combination of patient vendors reluctant to sell at what feels like a discount compared to prices from 2 years ago, or those with a land base above current market who are holding out, hoping for land values to climb.