A and Y November How the Fraser Valley land market is reacting
To borrow an over-used real estate market clich, it has been the tale of two markets this Fall in the Fraser Valley. On one hand, there are owners of development sites being buried by expensive debt with little to no equity left in the land, while at the same time, there are multiple offers showing up on other sites. It’s a fascinating dichotomy which makes it a difficult market to navigate and challenging to determine how much demand there will be for any particular development site; however, these are the demand themes we are seeing currently:
- The greatest demand is for medium-sized infill townhouse sites in Surrey and Langley, where the asking price is reflective of recent increases in construction costs and development fees.
- There is healthy demand for single-family and duplex, but it may be due to the lack of availability more than an outsized amount of demand as there is slightly less faith in the absorption rates of the relatively more expensive single-family and duplex home type.
- Land with long and/or unknown development timelines is low on the demand list unless it is priced very well, then it can get multiple offers.