Bucking typical autumn trends and slumping supply figures, real estate transactions rose in British Columbia’s Fraser Valley last month, pushing the average price of a single-family detached home to more than $1.4 million.

The Fraser Valley Real Estate Board (FVREB) reported a total of 1,972 sales across all property types in November, a 9.2% drop from November 2020 but a 1.8% increase month-over-month following 1,938 transactions in October.

“To see sales increase from October to November, even slightly, is unusual,” said Larry Anderson, FVREB president, in a statement. “Typically, as the weather changes and the holiday season approaches, we see sales start to decline, but not this year.”

While an increase in monthly sales activity isn’t customary late in the year, it’s also surprising given the lack of housing supply around the region, which typically sees inventory levels more than double the current totals.

There were 3,048 active listings in the Fraser Valley at the end of November, 11.6% lower than a month ago and a whopping 47.9% decrease from this time last year.

“Lack of supply continues to be the biggest factor impacting the market,” said Anderson. “This is not an easy market. Buyers and sellers alike are relying on the experience and skill of their realtor to help them navigate a lack of supply, multiple offer situations, and very fast turnaround times.”

Reinforcing a trend across the Lower Mainland, new product isn’t hitting the market fast enough to keep up with demand. The FVREB reported 2,096 new listings in November, a 4.2% decrease from October and 5.5% dip from the 2,217 new listings received in November 2020.

Both apartments and single-family detached homes spent an average of 24 days on the market before selling, while townhomes averaged 16 days on the market.

“We’re seeing a number of factors at play, including historically low interest rates fuelling purchases, with buyers aware that rates are likely to increase next year,” said Baldev Gill, FVREB CEO. “Our province has seen a strong economic recovery in most sectors through this pandemic, and this strength bolsters home purchasing decisions.”

Reduced supply and increased demand continue to push prices higher across all property types in the Fraser Valley. Single-family detached homes averaged $1,448,000 in November, 3.7% higher than October and an increase of 36.4% compared to November 2020.

The story remained the same in the multi-family market, as average townhome ($740,110) and apartment ($530,400) prices rose 2.7% and 3.2% month-over-month, respectively, surging 29.8% and 21.7% year-over-year.

Average Detached Price in BC’s Fraser Valley Hits $1.4 Million by Ryan Garner | Livabl