Let's Get Started!

What Just Happened to Townhouse Prices?

Surrey Townhouse Market Update (2026): Prices, Sales & What It Means for Buyers and Sellers

Townhouses have quietly become one of the most important housing types in Surrey.
  • More affordable than detached homes
  • More space than condos
  • Lower maintenance for families
For many buyers in Surrey and the Fraser Valley, they are now the default option.So what’s actually happening in the townhouse market right now?

Prices: Holding Up Better Than Detached Homes

Across Surrey’s key areas:
  • South Surrey / White Rock: up slightly month-to-month, but still ~8% down year-over-year
  • Cloverdale: down ~8%
  • Surrey (central): down ~8%
  • North Surrey: roughly flat, down ~7%
Key takeaway:
  • Townhouses are holding value better than detached homes
  • Detached homes have seen larger declines
This creates an interesting dynamic:
  • It’s actually a better time to upsize than in a rising market

Long-Term Trend: Why Townhouses Matter More Than Ever

Looking at the bigger picture:
  • Townhouses lagged during early 2010s
  • Exploded in demand around 2016
  • Became a core family housing option post-2020
Today:
  • They are no longer “step-up” housing
  • They are primary housing for many families
Especially in areas like Surrey, where affordability continues to be a challenge.

Sales Activity: Still Weak Overall

Recent trends:
  • Some areas (like North Surrey) showing strong increases
  • Others (like central Surrey) lagging badly
But zoom out:
  • Sales are still near historic lows
This means:
  • The market has improved slightly
  • But it is still far from strong

Inventory: Where the Pressure Is Coming From

The biggest issue right now:
  • Inventory is stacking up—especially in central Surrey
Why?
  • That’s where most new townhouse construction is happening
Key points:
  • More listings = more competition
  • More competition = downward pressure on price
Meanwhile:
  • North Surrey is relatively undersupplied
  • Cloverdale is closer to balanced

Months of Supply: Still a Buyer’s Market

Current conditions:
  • Surrey: ~8 months (buyer’s market)
  • North Surrey: ~8 months (buyer’s market)
  • South Surrey: borderline buyer’s market
  • Cloverdale: closer to balanced
Important insight:
  • Even in a buyer’s market, some areas are seeing price increases
  • That usually means:
    • Strong demand for specific product types
    • Buyers competing for “good” listings

Pricing Reality: Sellers Need to Understand This

Two critical stats:

Original List Price vs Sale Price

  • Most homes sell around 95–97% of original price

Current List Price vs Sale Price

  • Most homes sell within 2–3% of asking
What this means:
  • Buyers are not massively lowballing
  • Sellers are simply starting too high

Why Some Homes Sell (And Others Don’t)

In today’s townhouse market:
  • Well-priced homes → sell quickly
  • Overpriced homes → get ignored
Buyers today:
  • Know the market
  • Recognize value instantly
  • Skip overpriced listings entirely

Days on Market: The Most Important Number

Right now:
  • Average: ~35 days to sell
Here’s the rule:
  • If your townhouse hasn’t sold in ~35 days → it’s overpriced
At that point, your options are:
  • Improve condition (rarely the issue)
  • Improve marketing (sometimes helps)
  • Adjust price (almost always required)

Why Townhouses Are More Stable

Compared to detached homes:
  • Less variation between properties
  • More “cookie-cutter” comparables
  • More end-user buyers (less investor speculation)
Result:
  • Tighter pricing
  • More predictable outcomes

What This Means for Buyers

Right now:
  • More selection than usual
  • Less competition overall
  • Ability to be selective
But:
  • Good properties still sell fast
  • Pricing still matters

What This Means for Sellers

If you’re selling in Surrey:
  • You have more competition than before
  • Pricing strategy is everything
  • Buyers will not “test” overpriced listings
And most importantly:
  • The market will tell you quickly if you’re wrong

Final Thought

The townhouse market isn’t crashing—but it isn’t strong either.
  • Prices are down modestly
  • Sales are still slow
  • Inventory is elevated
But:
  • Demand is still there
  • The best properties are still selling
And in markets like Surrey:
  • Townhouses have become the backbone of family housing

Written by:
Steve Karrasch PREC
Karrasch Real Properties Team
Macdonald Realty