Langley Housing is Outperforming the Real Estate Market

One real estate market in the Fraser Valley is currently outperforming almost all the others.It’s not Surrey, the largest market in the area. It’s not Abbotsford. And it’s not even North Delta, despite being closer to Vancouver.It’s Langley.Don't get me wrong. Langley real estate prices are still down from where they were a year ago. But when you look beyond prices and dig into inventory, sales activity, days on market and the percentage of listings actually selling, Langley stands out from much of the surrounding Fraser Valley market.Even more interesting is what happens when we break Langley down into individual neighbourhoods.Because Langley City, Willoughby, Walnut Grove and Brookswood are currently behaving very differently.

Langley Is Holding Up Better Than Its Neighbours

Across all property types, Langley's Home Price Index is down approximately 6.3% over the past year.That doesn't exactly sound like great news.But price declines are only one piece of the puzzle.Months of inventory gives us a much better idea of the balance between buyers and sellers. The lower the number, the stronger the conditions generally are for sellers. The higher it gets, the more negotiating power shifts toward buyers.Currently, Surrey is sitting at approximately 9.4 months of inventory, North Delta at 8.6 months and Abbotsford at 7.7 months.Langley is sitting at approximately 5.5 months.That's a substantial difference and puts the overall Langley market much closer to balanced conditions than many surrounding communities.

But There Isn't One "Langley Market"

This is where things get interesting.Langley includes both the City and Township, and within those areas are very different neighbourhoods and property types.For this comparison, I focused on four of the areas residential buyers are most likely to consider:Langley City, Willoughby, Walnut Grove and Brookswood.I left out areas dominated by acreages because those properties are much more specialized and can skew the numbers dramatically.Once we break Langley into these four areas, we can see where the real strength is coming from.

Willoughby Has Become the New Fleetwood

Willoughby continues to amaze me.For years, Fleetwood was one of those Surrey neighbourhoods that seemed to attract almost everyone. Young families, established families, new Canadians, people moving out from Vancouver and buyers from almost every demographic wanted to live there.In my opinion, Willoughby has increasingly taken over that role.The Township of Langley has directed enormous amounts of new development into Willoughby, particularly condos and townhouses, and buyers have responded.Sales activity remains extremely strong compared with the rest of Langley.At the peak of the market, Willoughby recorded around 162 sales in a month. Recently, it was still producing around 118.That's impressive considering what has happened to sales volumes across much of the Fraser Valley.There is also an advantage for buyers: supply.If you miss a townhouse or condo you love in Willoughby, there's a reasonable chance another similar property will come onto the market.But I wouldn't necessarily expect that next property to sell for less.Willoughby appears to be maintaining values considerably better than many surrounding markets.

Walnut Grove May Be Even Stronger

If Willoughby is the high-volume market, Walnut Grove may be the tightest.Walnut Grove has always been one of Langley's most desirable family-oriented communities. It's farther away from much of the density and activity of central Langley, while offering established neighbourhoods, schools and relatively limited housing supply.That limited inventory matters.Walnut Grove is moving toward conditions that could favour sellers again.Approximately 35% of its active listings are currently selling each month.Think about that.Even in today's slower Fraser Valley real estate market, roughly one in three Walnut Grove listings is selling each month.Compare that with markets where closer to one in 10 listings is selling and you begin to understand just how different the conditions are.If you're a buyer waiting for the perfect opportunity in Walnut Grove, you may find yourself competing sooner than you expect.

Brookswood Continues to Do Its Own Thing

Brookswood is a different market again.There simply aren't as many properties available, and historically the neighbourhood has been dominated by detached homes and larger lots.Brookswood's HPI also tends to be higher because of that housing mix.The neighbourhood is beginning to densify, so we'll likely see its housing stock change over time. But for now, it continues to move along relatively consistently.It's not producing the sales volume of Willoughby or the tight inventory conditions of Walnut Grove, but it's also a much smaller market.For buyers specifically looking for the Brookswood lifestyle, there simply aren't as many alternatives.

Langley City Is Having a Tougher Time

Langley City is the outlier.While areas like Walnut Grove and Willoughby have remained relatively stable at points over the past year, Langley City has continued to experience more downward pressure.Months of inventory is sitting at approximately 7.7, putting it much closer to what we're seeing in Abbotsford and other slower Fraser Valley markets.Only around one in 10 listings is selling each month.There could be several reasons for this, but one important factor is competition from Willoughby.Historically, buyers looking for more affordable condos and townhouses in Langley naturally gravitated toward Langley City. Today, Willoughby offers an enormous amount of newer housing, and I believe some buyers who previously would have considered Langley City are instead moving north.For buyers looking specifically for value and negotiating opportunities, however, that weakness could create opportunities.

New Listings Are Starting to Decline

Another encouraging sign across Langley is that new listings are declining.Active inventory is beginning to come down as well.Some of this is normal seasonality. Real estate inventory generally rises through the spring and summer before declining toward winter.But fewer properties competing for buyers is still good news for existing sellers.Willoughby has considerably more inventory today than it did historically, but that's partly because Willoughby itself has grown so dramatically. Acreages have been redeveloped into large communities containing condos, townhouses and detached homes.More listings don't necessarily mean the neighbourhood is struggling if buyers are absorbing that additional supply.And in Willoughby's case, they largely are.

What Are Sellers Actually Negotiating?

One of the other interesting things about Langley is how close properties are selling to their current asking prices.There's an important distinction between the original list price and the current list price.A seller might originally ask $1 million, reduce to $950,000 and eventually sell for $925,000. Comparing the sale with the original $1 million price tells us something about the seller's initial expectations. Comparing it with $950,000 tells us much more about the actual negotiation that occurred.Once sellers in these Langley neighbourhoods adjust their prices to market conditions, we're generally seeing final negotiations within approximately 2% to 3% of the current asking price.That's a fairly normal real estate market.It also means buyers shouldn't assume that because the broader Fraser Valley is struggling, every Langley seller will accept an aggressive lowball offer.

How Long Should It Take to Sell in Langley?

Days on market have increased throughout Langley compared with the extremely fast conditions of a few years ago.On a 12-month rolling basis, the neighbourhoods we're looking at are generally averaging approximately 34 to 40 days on market.That doesn't mean sellers should panic if their home hasn't sold in two weeks.But it does mean you should pay attention.If you're approaching a month on the market without meaningful interest or offers, there's a good chance your property isn't positioned correctly against the competition.That could mean presentation, marketing or simply price.In this market, sellers need some patience, but patience can't become an excuse to ignore what buyers are telling you.

What This Means for Langley Buyers

For buyers, Langley is sending some mixed signals.If you're shopping in Langley City, you may find considerably more negotiating power and potentially better deals.If you're looking in Walnut Grove, it's almost the opposite. Inventory is tighter, a much higher percentage of properties are selling and you may need to make decisions faster.Willoughby sits somewhere in between.The good news in Willoughby is that there's considerably more product. If you miss one property, another similar home may become available.The bad news, at least if you're hoping for dramatically lower prices, is that there are enough buyers interested in Willoughby that you shouldn't necessarily expect the next comparable property to sell for less.

What This Means for Langley Sellers

If you already own real estate in Willoughby or Walnut Grove, you're currently in one of the stronger positions in the Fraser Valley.That doesn't mean you can ask any price you want.Buyers remain educated and price-sensitive, and days on market have increased.But compared with many neighbouring markets, a much larger percentage of Langley properties are actually selling.That's ultimately what matters.You don't need every buyer to want your home. You need enough demand relative to your competition to create a successful sale.Right now, certain parts of Langley have exactly that.

Langley Is Bucking the Fraser Valley Trend

The broader Fraser Valley real estate market remains challenging. Prices are down, sales are weak and many communities continue to favour buyers.But Langley demonstrates why I constantly say there really isn't one "real estate market."Surrey can be sitting around 9.4 months of inventory while the entirety of Langley is closer to 5.5. Within Langley itself, Langley City can favour buyers while Walnut Grove approaches seller's-market conditions.Those are completely different markets only a short drive apart.Right now, Willoughby and Walnut Grove appear to be two of the strongest residential markets in the area, while Langley City is providing more opportunity for buyers looking for negotiating leverage.Whether you're buying or selling, that's why understanding the neighbourhood—and not simply the latest headline about the Canadian or even Fraser Valley real estate market—is so important.Written by:
Steve Karrasch PREC
Karrasch Real Properties Team
Macdonald Realty