FRASER VALLEY

Spring home shoppers love the Fraser Valley:  opportune time for buyers.    

With the long-awaited Spring season now upon us, there are clear signs that home buyers are getting out to look at Fraser Valley properties. February 2020 sales across all property types rose above the 10-year average. This was also 39 per cent higher than the preceding month of January and close to the same increaseover this period from one year ago. Prices across the Valley for all property types are continuing to move upwards, through still moderately. However, this situation may not last. The recent prime rate drop of 50 basis points by the Bank of Canada has already brought down mortgage rates; shaving half a percent off a mortgage means significant savings. This mortgage rate cut combined with an easing of national mortgage stress test rules will surely be an incentive for serious home shoppers to purchase a home at this time. I strongly encourage prospective buyers to move quickly though, to avoid the possibility of a sharper increasein prices with likely increasein demand arising from the financial incentives now in place. There is also still some seasonal slowness in new listings at this time. February listings in the Fraser Valley reached 2,557, but this was still down 15 per cent compared with one year ago.  Nonetheless, there were sill 5,741 active listings at the end of February so shoppers still have ample choice. However, homes in the three main property types sold last month on average six days faster than they did one year ago, another indicator of increasing demand. Across the Valley in February, the average time for a single family detached residence to remain on the market was 37 days; townhouses on average sold in 33 days; and condominiums in 35 days.

The composite benchmark price for a Fraser Valley property at the end of March was $847,300, anincreaseof 1.6 per cent from the preceding month. Compared to the comparable benchmark in Metro Vancouver of over $1-million, it is easy to see why so many young families and singles are finding a quality home at an affordable price in this region. Although there is still some sluggishness in new listings on average across the Valley, it is well worth the effort to check out specific areas, particularly for condominium sales, which may exceed the norm for availability. I will be happy to help any home shopper with details on their specific requirements. Please also take a look at my monthly comparative benchmark changes for each property type in the selected areas below. And if you are contemplating listing your Valley home for sale now, please give me call. This is an excellent time to sell without undue delay, and I can assist you in setting the optimal price for current market conditions in your area.

Detached Homes 

The benchmark price for a single-family detached home in the Fraser Valley at the end of March was $988,500, an increase of 1.8 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,319,900 and Abbotsford at $825,600. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $1,026,600 an increase of 2.4 per cent from the preceding month; Surrey at $1,029,200, an increase of 1.6 per cent from the preceding month; and Cloverdale at $1,053,700 an increaseof 2.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $975,600, an increase of 2.5 per cent from the preceding month; North Delta at $930,700, an increase of 1.5 per cent from the preceding month; and Abbotsford at $825,600, an increase of 1.4 per cent from the preceding month. 

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of March was $549,600, an increase of 0.7 from the preceding month. The extremities of this average were South Surrey/White Rock at $640,700 and Abbotsford at $455,400. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $551,400, a decrease of 1.9 per cent from the preceding month; Langley at $561,300, an increaseof 0.4 per cent from the preceding month; and North Delta at $562,400, a decrease of 2.3 per cent  the preceding month.  The two municipalities closest to the benchmark on the lower side of the average were: Mission at $456,100, an increase of 1.0 per cent from the preceding month; and Abbotsford at $455,400 a decrease of 0.3 per cent from the preceding month.

Condominiums 

The benchmark price for a condominium in the Fraser Valley at the end of March was $423,200, an increase of 2.1 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $481,400 and Abbotsford at $320,800. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $425,500, an increase of 3.2 per cent from the preceding month; Surrey at $429,600, an increase of 2.0 per cent from the preceding month; and Cloverdale at $474,600, an increase of 2.1 per cent from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $415,200, an increase of 2.0 per cent from the preceding month; North Delta at $389,900, an increase of 3.4 per cent from the preceding month; and Mission at $342,700, an increase of 0.9 per cent increase from the preceding month.  

Let me help: New mortgage stress test can assist buyers

You will now find it easier to qualify for a mortgage. New national mortgage stress test rules will help many potential buyers who did not meet previous criteria for a mortgage. The recent reduction in the Bank of Canada’s prime lending rate is another incentive for home shoppers. These two changes make it an excellent time to purchase your dream home. With several years in banking and finance, I can also help you understand your mortgage requirements. I am happy to help. Please feel free to call me. 

 

 

 

 

If you have been concerned about your financial ability to purchase a home in the Great Vancouver area, I have some exciting news for you. There is a rare opportunity for home buyers starting in April. Perhaps you were previously unable to qualify for a mortgage because of the mortgage stress test introduced by the federal government in 2018. For the past two years, these difficult rules have sidelined many hopeful buyers. I know many of my clients are prospective first-time buyers who had saved for a down payment – only to be told that you did not have quite enough to meet the necessary minimum under the stricter rules. I’m sure many of you felt this was somewhat unfair, but you were also glad to see measures that eased demand and brought down prices in an overheated market – one that has now dropped to levels not seen since 2017. After two years of watching prices return to an affordable range, your patience is to be doubly rewarded.

Starting April 6, the federal government is making it easier for you to qualify for your mortgage. I will briefly describe how the new rules will change in this paragraph, but if you wish to skip over the technical jargon, please just give me a call. In simple terms, I can assure you that the bottom line will mean a big benefit to you – if you act now! Basically, under the rules of the past two years, your ability to meet monthly mortgage payments was tested using the five-year interest rate posted by Canada’s big banks. With some minor variability, this rate has recently been around 5 per cent. As of April 6, there will be a new stress test formula for calculating your mortgage rate. It will be the weekly median five-year fixed and insured mortgage rate based on mortgage insurance applications, plus two per cent. It’s not imperative that you are familiar with the technical issues in this new formula.  What you need to understand is that this new formula will create a means for the rate to change in response to market changes much more quickly than was happening with the big bank rates. Some financial analysts have accused the big banks of delaying changes to their rate when it favoured them. The bottom line for the new rules is that they should help more people qualify for a mortgage.

But wait! There’s more. (That sounds like late night TV commercial – but it’s true!) You’ve probably heard the news that Canada’s Central Bank has recently lowered the nation’s prime lending rate to keep our financial markets liquid. In plain English, this means that the Bank of Canada is ensuring there is enough money available for credit buying as the world’s financial system is under stress. By lowering the prime rate – that is, the interest rate which is provided to the commercial banks for their borrowing, the big banks can then lower their lending rates to stimulate the economy. This applies to mortgages, of course, so at this time there is an even better reason for you qualify for your mortgage. With the lower rates you will have lower monthly payments, and with the eased stress test rules, you can qualify with a smaller down payment. However, I am encouraging you to move now. The market is a dynamic place, and when a lot of potential buyers decide to start buying, it can push prices higher. That’s why I am really encouraging you to take advantage of this double benefit without delay.

If you want to get an idea of how low a mortgage rate you can get at this time, go to:  https://www.ratehub.ca

At the time of this writing, the lowest mortgage for a five-year fixed term was 2.24 per cent. Add 2.0 per cent to this figure to see the rate you would have under the new stress test rules. You have not had a bargain like this for a long time.

Please feel free to call me. I can work with you for your particular financial capacity, and help you get into that long-awaited home with no further delay.

FRASER VALLEY

Spring home shoppers love the Fraser Valley:  opportune time for buyers.    

With the long-awaited Spring season now upon us, there are clear signs that home buyers are getting out to look at Fraser Valley properties. February 2020 sales across all property types rose above the 10-year average. This was also 39 per cent higher than the preceding month of January and close to the same increase over this period from one year ago. Prices across the Valley for all property types are continuing to move upwards, through still moderately. However, this situation may not last. The recent prime rate drop of 50 basis points by the Bank of Canada has already brought down mortgage rates; shaving half a percent off a mortgage means significant savings. This mortgage rate cut combined with an easing of national mortgage stress test rules will surely be an incentive for serious home shoppers to purchase a home at this time. I strongly encourage prospective buyers to move quickly though, to avoid the possibility of a sharper increase in prices with likely increase in demand arising from the financial incentives now in place. There is also still some seasonal slowness in new listings at this time. February listings in the Fraser Valley reached 2,557, but this was still down 15 per cent compared with one year ago.  Nonetheless, there were sill 5,741 active listings at the end of February so shoppers still have ample choice. However, homes in the three main property types sold last month on average six days faster than they did one year ago, another indicator of increasing demand. Across the Valley in February, the average time for a single family detached residence to remain on the market was 37 days; townhouses on average sold in 33 days; and condominiums in 35 days.

The composite benchmark price for a Fraser Valley property at the end of February was $833,400, an increase of 1.2 per cent from the preceding month. Compared to the comparable benchmark in Metro Vancouver of over $1-million, it is easy to see why so many young families and singles are finding a quality home at an affordable price in this region. Although there is still some sluggishness in new listings on average across the Valley, it is well worth the effort to check out specific areas, particularly for condominium sales, which may exceed the norm for availability. I will be happy to help any home shopper with details on their specific requirements. Please also take a look at my monthly comparative benchmark changes for each property type in the selected areas below. And if you are contemplating listing your Valley home for sale now, please give me call. This is an excellent time to sell without undue delay, and I can assist you in setting the optimal price for current market conditions in your area.

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of February 2020 was $971,300, an increase of 1.1 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,304,200 and Mission at $669,400. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $1.002,600, an increase of 0.7 per cent from the preceding month; Surrey at $1,012,700, an increase of 0.5 per cent from the preceding month; and Cloverdale at $1,029,100, an increase of 2.1 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $951,900, an increase of 1.4 per cent from the preceding month; North Delta at $916,600, no change from the preceding month; and Abbotsford at $814,000, an increase of 1.9 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of February 2020 was $523,200, an increase of 1.0 from the preceding month. The extremities of this average were South Surrey/White Rock at $617,100 and Abbotsford at $382,100. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $561,900, a decrease of 1.8 per cent from the preceding month; Surrey at $561,900, an increase of 1.7 per cent from the preceding month; Cloverdale at $571,100, an increase of 3.7 per cent from the preceding month.  The three municipalities closest to the benchmark on the lower side of the average were: Langley at $503,700, an increase of 1.7 per cent from the preceding month; Mission at $444,100 an increase of 1.1 per cent from the preceding month; and Abbotsford at $382,100, an increase of 0.4 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of February 2020 was $414,500, an increase of 1.5 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $482,400 and Abbotsford at $313,400. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $421,200, an increase of 2.3 per cent from the preceding month; Cloverdale at $465,100, an increase of 1.7 per cent from the preceding month; and South Surrey/White Rock at $482,400, an increase of 1.3 per cent from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Langley at 412,200, an increase of 1.6 per cent from the preceding month; North Surrey at $407,300, an increase of 1.9  per cent from the preceding month; and North Delta at $377,200, a 1.9 per cent increase  from the preceding month. 

Let me help: New mortgage stress test can assist buyers

You will now find it easier to qualify for a mortgage. New national mortgage stress test rules will help many potential buyers who did not meet previous criteria for a mortgage. The recent reduction in the Bank of Canada’s prime lending rate is another incentive for home shoppers. These two changes make it an excellent time to purchase your dream home. With several years in banking and finance, I can also help you understand your mortgage requirements. I am happy to help. Please feel free to call me.  

Last year the federal government introduced its First Time Home Buyers Incentive.  The idea behind the program was to provide financial assistance for families across the country to buy their first home. This was to be done with the federal government becoming an equity partner in the home by providing an interest-free load up to 10 per cent of its purchase price. The federal financing reduces the down payment for the first-time buyer and thus creates an incentive to buy a home with lower monthly mortgage payments. As an equity partner, the government is then entitled to receive a return on its investment when the home is eventually sold, within a period of 25 years. The government is therefore betting that the value of the home will increase over time (a safe bet in Canada), and its percentage of ownership will provide a return to the government greater than its initial investment. For many Canadians who would not otherwise be able to afford to purchase a home, this is a very good idea, even it means that they will return part of their ultimate sale price to the government. For the many years that a family can enjoy the benefits of their home, it is a deal that they see is well worth making.  While there are some specific criteria for qualifying for the program that need to be checked out in some individual cases, three general rules are as follows: 1) that your household income is under $120,000; (2) you have sufficient cash for the minimum down payment. The current program sets this at 5 per cent of the first $500,000 of the purchase price of a new home, and 10 per cent for any amount above that, with a ceiling of 20 per cent of the home’s purchase price; (3) the total amount that you can borrow toward the home purchase is less than four times your income.   For example, if your want to buy a new home for 500,00, you could receive a loan of $50,000 toward the down payment. (If you are buying home that is not new, then the amount of the load would be 5 per cent, or $25,000, on a $500,000 price.)

For prospective home buyers in Greater Vancouver, there is another important rule that needs to be noted: The maximum price for a home purchase under the incentive program is $565,000. This is huge problem for Canadians who live in the Greater Vancouver region. Last month the composite benchmark home price listed on the Multiple Listing Service by the Greater Vancouver Real Estate Board was $1,008,700. Note that each of the following benchmarks for each different property type is beyond the maximum allowable for the program: At the end of January 2020, the composite benchmarks for single detached homes was $1,431,200; for townhouses, $782,500; and condominiums, $663,200. This is a regional inequity that must be remedied soon.

When the federal government announced the program in its 2019 budget, it promised it would help 100,000 new home buyers in Canada. According to a recent report by the Western Investor, there were only 29 applications approved for Metro Vancouver since the launch of the program in September 2019. Of these, the average loan was $18,000 which represents an average home price of about $350,000. Obviously, this price range precludes the housing needs of the vast majority of home buyers in Greater Vancouver. The federal government has indicated it is looking into adjusting the maximum eligible home price for large urban areas like Vancouver. It is imperative that the government moves quickly to remedy this unfair regional differential. It must create an incentive that works for expensive real estate markets like Vancouver, and to do so without delay. There are many home seekers who are forced to sit on the sidelines while residential property prices continue to rise.   

FRASER VALLEY

Fraser Valley listings surge in January; excellent time for prospective buyers.

The Fraser Valley continues to attract home buyers, as shown in sales for the first month of this year. At the end of January, Valley sales jumped 21.9 per cent over the preceding month, reaching nearly 1,000 purchases across al property types. This would be a strong start to the year under in any circumstances, but considering the inclement weather for most of January, it is particularly noteworthy and bodes well for sales activity in 2020. It’s also worth noting that January sales were almost 25 per cent higher than for the same period one year ago. With a composite residential benchmark price of $823,600, still well under the $1-million mark of Metro Vancouver, affordable, quality homes are still a big draw for home buyers. Single family detached homes led January with 363 sales, followed by 241 sales of townhouses and 248 condominiums. The breakdown of benchmark prices for each of these property types is provided in my comparative sample of various areas below. Prices tend to be inching up overall, but the market is still stable and there was good news in January on the supply side. During the month of January, there were 2,216 new listings, a 234 per cent increase over the number of new listings in the preceding December. This brought the closing inventory at the end of January to 5,143 active listings, almost 10 per cent higher than it closed at the end of 2019.  

As the weather continues to improve, there are sure to be more home shoppers in the Spring. I therefore recommend that if you are seriously looking for a Valley home, you should make a bid

at this opportune time. While the recent surge in new listings may be attracting prospective buyers, there is no guarantee that the supply will continue to increase at this rate. Compared with new listings one year ago, the rate is still a 15 per cent decline. I will be tracking new listings for you in this newsletter each month and I urge to you take note of this statistic because lower inventory could begin an upward pressure on prices. For anyone thinking about listing at this time, there is ample demand to warrant that decision now. During the month of January, single family homes remained on the market for an average of 60 days before selling. Townhouses sold on average in 47 days, and condominiums on an average of 49 days. Please take a look below at the property type of your choice to get a sense of the benchmark prices in different areas of the Fraser Valley. If you have any questions about a specific neighborhood, I will be happy to give you a more detailed analysis.    

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of January was $960,800, an increase of 0.8 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,300,500 and Mission at $653,100. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $995,500, a decrease of 0.1 per cent from the preceding month; Surrey at $1,007,500 an increase of 0.8 per cent from the preceding month; and Cloverdale at $1,008,400, a decrease of 0.1 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $938,700, an increase of 0.6 per cent from the preceding month; North Delta at $916,600, an increase of 0.6 per cent from the preceding month; and Abbotsford at $798,900, an increase of 1.4 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of January 2020 was $518,000, an increase of 0.6 from the preceding month. The extremities of this average were South Surrey/White Rock at $616,400 and Abbotsford at $380,600. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $550,600, a decrease of 1.8 per cent from the preceding month; North Surrey at $552,800, an increase of 0.1 per cent from the preceding month; and North Delta at $564,100, an increase of 2.7 per cent from the preceding month.  The three municipalities closest to the benchmark on the lower side of the average were: Langley at $495,500, an increase of 1.1 per cent from the preceding month; Mission at $439,300, an increase of 0.2 per cent from the preceding month; and Abbotsford at $380,600, an increase of 1.2 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of January 2020 was $408,400, an increase of 0.7 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $476,400 and Abbotsford at $312,000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $411,800, an increase of 0.6 per cent from the preceding month; Cloverdale at $457,400, an increase of 1.9 per cent from the preceding month; and South Surrey/White Rock at $476,400, an increase of 0.1 per cent from the preceding month; The three municipalities closest to the benchmark on the lower side of the average were: Langley at 405,900, a decrease of 0.3 per cent from the preceding month; North Surrey at $399,800, an increase of 1.1  per cent from the preceding month; and North Delta at $370,300, no change from the preceding month. 

Other ways I can help

I am here to help you, whatever your housing requirements, I bring experience in banking and finance to assist you in your mortgage planning. If you are thinking about listing your home for sale, I can also advise you on the optimal price for the current market conditions. And in case you are thinking about home renovations that will increase your home value, I can recommend reputable tradespeople who do excellent work at fair rates. Please don’t hesitate to call me. It gives me great pleasure to help my clients. 

Fraser Valley offers affordable, quality homes; declining supply could push prices up.

The start of 2020, both as a new year and a new decade, brings several attractive features for a quality lifestyle in the Fraser Valley. Affordability is still a bid draw, especially for young families and first-time home buyers.  The combined benchmark price for all property types across the region at the beginning of January was 818,000. This is 2.0 per cent less than it was one year ago, and well under the $1-million mark of Metro Vancouver. Across the municipalities in the Valley, prices are currently stable, and despite a declining inventory at present, it is an excellent time to enter the market.  Even with the listing decline last year, there were still over 30,500 new Valley listings in 2019, and 4,600 homes available for sale at the end of December. With buyers now more confident in normal market dynamics, I expect to seer a rise in the rate of sales in the coming year. And with greater home purchasing activity this could create an upward movement in prices, so I recommend you get into the market as early as you can this year.

Because quality of life for homeowners in the Fraser Valley is major attraction, I would impress on potential buyers that the long-term equity in a Valley home be seriously considered. If you were to look at price changes in every municipality for the past three years, you would see significant increases ranging from 15 per cent to over 50 per cent, with the exception of detached homes and townhouses in South Surrey/White Rock. In this high-end area alone, prices had spiralled the highest in the period before new government taxes and stricter mortgage rules took effect. It is understandable, therefore, that the market correction there has taken a bit longer. This year the combined benchmark price in South Surrey/White Rock is a mere 0.7 higher than three years ago, but there are some very attractive prices for buyers wanting a higher priced neighborhood. Across all other Fraser Valley areas, you will find quality homes comparably at most affordable prices. Below I have identified each property type closest to its benchmark price in six municipalities. This guide should give you a good idea of the price stability as it shows the one month change for each benchmark. If you have any questions for your particular needs, please don’t hesitate to call me.  

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of December 2019 was $953,700, an increase of 0.2 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,299,500 and Mission at $644,100. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $996,700, an increase of 0.6 per cent from the preceding month; Cloverdale at $998,100, a decrease of 0.1 per cent from the preceding month; and Surrey at $992,200, a decrease of 0.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $933,400, a decrease of 0.2 per cent from the preceding month; North Delta at $904,600, an increase of 1.6 per cent from the preceding month; and Abbotsford at $787,600, an increase of 0.3 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of December 2019 was $514,900, no change from the preceding month. The extremities of this average were South Surrey/White Rock at $625,000 and Abbotsford at $376,200. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $552,200, a decrease of 0.4 per cent from the preceding month; Surrey at $554,400, no change from the preceding month; and  Cloverdale at $560,700, an increase of 1.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $490,100, no change from the preceding month; Mission at $438,400, a decrease of 0.3 per cent from the preceding month; and Abbotsford at $376,200, a decrease of 0.4 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of December 2019 was $405,500, an increase of 0.3 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $475,800 and Abbotsford at $309,200. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $407,300, an increase of 2.0 per cent from the preceding month; Surrey at $409,300, a decrease of 0.1 per cent from the preceding month; Cloverdale at $451,200, a decrease of 0.1 per cent from the preceding month; and Cloverdale at 448,700, a decrease of 0.6 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $398,700, an increase of 0.6 per cent from the preceding month; Mission at 337,500, an increase of 0.7 per cent from the preceding month; and Abbotsford at $309,200, no change from the preceding month.

Best wishes for a happy and prosperous 2020

May good fortune be your companion throughout this New Year.  Please let me know if I am able to assist you in any of your real estate matters, whether you are planning to buy, to list, or to renovate in the coming year. I am happy to provide detailed market information, or financial expertise on your home or desired area; and can recommend quality, reliable tradespeople if you are thinking about renovations. I enjoy helping my clients in a variety of ways. Please don’t hesitate to call.

FRASER VALLEY

New Year outlook: Opportune time for home buyers   

This is a time of year when many home hunters put their plans of hold for the holiday season. It’s also a time when people wonder what the New Year will bring. So, if you have been thinking about a purchasing home in the Fraser Valley, here’s my analysis of the market as we approach the end of 2019.

As we have observed for nearly two years, housing prices have been in decline since government measures took effect in 2018 to cool soaring prices. The composite benchmark price across all property types was $817,000 at the end of November. This is more than a 20 per cent decline from three years ago, so it’s obvious that new taxes and mortgage restrictions have a great impact on the market. In almost all the Valley’s municipalities, comparable double-digit declines have been seen, except for South Surrey/White Rock, where the benchmark price is very close to what it was three years ago, a mere 0.1 per cent drop in that time frame. This area has always led the Fraser Valley’s highest priced properties, and for that reason has not been the locale with the highest number of sales.  Residential demand in the Fraser Valley is driven largely by young families and first-time home buyers seeking quality homes at prices that are lower than in Metro Vancouver. November sales for Fraser Valley townhouses were over 46 per cent higher than one year ago; Valley condominium sales were up more than 30 per cent for the same period. However, new listings in these property types are not keeping pace with this demand. November’s sales reduced the Valley’s existing inventory of townhouses by about one third, and condominiums by about 29 per cent. If new listings continue to decline, the effect on prices may depend on the specific area of the listing. Increased demand and lower supply as a rule triggers higher prices, but it can also be a test of price stability. Even with the current overall reduced supply, the composite benchmark price for November declined 0.1 per cent from October. So, this will be notable metric to watch in the New Year. I will be following this particular issue closely for you, and I encourage you to check this newsletter in January 2020. 

In actual numbers, it’s important to note that there is still a large supply of properties for sale across the Fraser Valley. At the end of November, there were 6,733 active listings across all property types. This total included 1,877 new listings for the month, and 29,620 new listings over one year. I encourage anyone wanting to purchase a Valley property not to wait for lower prices. There will likely continue to be minor fluctuations in different areas in early 2020, but current market conditions suggest rising prices may be around the corner. Valley properties do not remain on the market for long. Last month, the average length of time to sell a single detached home was 48 days; townhouses remained on the market for an average of 38 days, and condominiums for 40 days. Below you can find comparative benchmark prices for my selected areas across the Fraser Valley in all property types.    

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of November was $952,200, a decrease of 0.1 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,311,500 and Mission at $639,200. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $990,300, an increase of 0.7 per cent from the preceding month; Cloverdale at $998,900, an increase of 0.2 per cent from the preceding month; and Surrey at $1,002,200, a decrease of 0.2 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $935,500, a decrease of 0.2 per cent from the preceding month; North Delta at $890,600, an increase of 0.4 per cent from the preceding month; and Abbotsford at $785,100, a decrease of 0.2 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of November was $514,700, a decrease of 0.3 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $632,000 and Abbotsford at $$785,100. The three municipalities closest to the benchmark on the higher side of the average were: North Delta at $530,700, a decrease of 3.1 per cent from the preceding month; Cloverdale at $552,900, a decrease of 1.1 per cent from the preceding month; and North Surrey at $554,300, an increase of 1.9 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $490,400, an increase of 1.3 per cent from the preceding month; Mission at $439,800, an increase of 1.0 per cent from the preceding month; and Abbotsford at $377,700, a decrease of 0.9 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of November was $404,500, a decrease of 0.1 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $471,100 and Abbotsford at $309,200. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $409,600, a decrease of 0.2 per cent from the preceding month; Cloverdale at $451,200, a decrease of 0.1 per cent from the preceding month; and South Surrey/White Rock at $471,100, a decrease of 0.8 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $399,200, a decrease of 0.1 per cent from the preceding month; North Surrey at $398,200, an increase of 0.1 per cent from the preceding month; and North Delta at $369,100, a decrease of 0.8 per cent from the preceding month.

Merry Christmas and Happy New Year

Your home is a special place and even more appreciated when it can be enjoyed with friends and neighbors this festive season. My family and I wish you a safe and merry holiday season, and best wishes for the New Year. 

FRASER VALLEY

Sales volume still increasing in Fraser Valley; Some early signs of prices inching upwards.  

We’ve seen another month of strong sales activity in the Fraser Valley. No doubt the lovely weather in October was part of the reason for home shoppers to get out, but the excellent price levels across all property types is a more likely the primary reason for the robust sales volume. October saw an increase in sales of close to 19 per cent more than in September this year. And on a yearly comparison, this was nearly 40 per cent higher than one year ago. I have been encouraging home seekers to take advantage of the market stability for several months now. When prices are relatively stable, the sales transaction for both the buyer and seller is more relaxed. We can recall the frenzied market before government measures took effect to cool the rapidly escalating prices. In those conditions, competing bids made purchasing a home very stressful for the buyer. If you are a home seeker, it’s a great time to make an offer.

I want to point out, however, that the Fraser Valley market is currently lagging a bit in new listings. During this past October there were 7,398 active l listings – still an excellent supply – but new listings during the month were down close to 7 per cent from September. On a simple supply and demand basis, this could exert some upward pressure on prices since demand shows signs of remaining strong.  Declining prices, as we’ve seen for the past year, created a general division between two groups of sellers. There are those sellers who list their property early in the decline period for fear the price drop will cost them too much. There are other who wish to sell, but who decide to wait until the “price bubble” returns to a more historical level and then wait for price increases to begin again. This can result in price changes moving in opposite directions in different areas, and this requires a close analysis of changes from month to month. I believe that for some property types, prices have already begun to inch upwards. For example, benchmarks for single family detached homes in all but two municipalities in the Fraser Valley showed increases from September to October.  I encourage you to watch the monthly changes I track for you in this newsletter. There are still relatively small price fluctuations each month, but they can become the key indicators for price direction over a period of time. If you would like detailed analysis for any specific property type and area, please let me know.  Below you can find a comparison of leading benchmarks across the Valley.    

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of October was $952,600, a decrease of 0.3 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,318,300 and Mission at $639,700. The three municipalities closest to benchmark on the higher side of the average were: Langley at $983,500, an increase of 0.1 per cent from the preceding month; Cloverdale at $996,500, an increase of 1.1 per cent from the preceding month; and Surrey at $1,005,200, an increase  of 0.2 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average of were: North Surrey at $937,600, a decrease of 0.4 per cent from the preceding month; North Delta at $886,800, a increase of 1.3 per cent from the preceding month; and Abbotsford at $786,700, a decrease of 0.6 per cent from the preceding month.  

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of October was $516,000, a decrease of 0.8 per cent from the preceding month. The extremities of the average were South Surrey/White Rock at $640,300 and Abbotsford at $381,200. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $544,00, a decrease of 1.7 per cent from the preceding month; North Delta at $547,800, a decrease of 1.5 per cent from the preceding month; and Surrey at $558,700, a decrease of 1.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $484,100, a decrease of 0.4 per cent from the preceding month; Mission at $435,400, an increase of 1.3 per cent from the preceding month; and Abbotsford at $381,200, a decrease of 0.2 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of October was $405,100, a decrease of 0.1 per cent from the preceding month. The extremities of the average were South Surrey/White Rock at $474,800 and Abbotsford at $308,600. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $410,400, an increase of 2.1 per cent from the preceding month; Cloverdale at $453,500, an increase of 0.7 per cent from the preceding month; and South Surrey/White Rock at $474,800, a decrease of 3.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Langley at $399,700, a decrease of 0.1 per cent from the preceding month; North Surrey at $397,900, an increase of 0.9 per cent from the preceding month; and North Delta at $372,100, an increase of 1.8 per cent from the preceding month.

Let me help

I love to help clients and I can assist in many different ways. I have a strong background in banking and finance and can offer expert advise on your mortgage and your budget. Some clients are thinking about renovations, either to add value to their home before listing it for sale, or simply for their living comfort. I can recommend reputable and reliable tradespeople who do quality work for reasonable rates. I can also provide you with a customized analysis of homes and prices in any area you may be interested in. Please let me know if you have any questions about anything to do with your real estate needs.

METRO VANCOUVER

October an excellent time to explore the market; new listings up 30 per cent in one month

This is a beautiful time of the year, and I know some of my clients are enjoying scenic drives around Metro Vancouver with the colors of autumn decorating residential neighborhoods. Even better, last month saw a surge in new listings to almost 30 per cent over August, so there’s a great selection of homes available right now. With 4,866 new listings, the total inventory of detached homes, townhouses and condominiums rose to almost 13,439. If you’ve been looking but just haven’t found the right home yet, the current selection could hold that special place you’ve been waiting for. But let me point out another reason to do some serious shopping at this time. There were 2,333 residential sales in September, which was close to 50 per cent more than September one year ago, and almost 5 per cent more than sales in August this year. It’s becoming increasingly clear that much of the pent-up demand that formed over the past couple of years is now being released. Sales are increasing as both buyers and sellers regain their confidence in stable prices. One common metric is the ratio of sales-to-active listings.  That ratio is in a sweet spot right now between 12 and 20 per cent. When it drops below 12, we tend to see downward pressure on prices; and above 20, we tend to see upward pressure. With current prices within this range, it’s a comfortable time to make an offer, or to list your home. Let’s look at the trend for the past half a year.

The composite benchmark price for all residential properties in Greater Vancouver at the end of September was $990,600, a slight decrease of 0.3 per cent from the preceding month. The six-month change was a decline of 2.2 per cent which, of course, means $22,000 less on a $1-million listing. But keep in mind that this leaves ample room for some negotiating when making an offer. In an overall climate of price stability, a reasonably priced home will attract offers close to the listed price without a stampede of competing offers driving up the price. That’s why I encourage prospective buyers to get out and take advantage of the current price levels. Remember that the composite benchmark is still below the psychological threshold of $1-million. This situation can contribute to a dynamic market where sales and listings remain in good balance. Take s look at the monthly comparisons I have selected for you below. Whatever your choice of property type and residential area, it’s a good time to find a property with a price that can once again be historically typical for Greater Vancouver.

Detached Homes

The benchmark price for a single-family detached home in Greater Vancouver at the end of September was $1,406,200, no change from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $2,894,400 and Sunshine Coast at $594,900. (Note I include the Sunshine Coast only as a factor in the average, but do not report on housing prices in this area because it is to far away for my clients).The three municipalities closest to the benchmark on the higher side of the average were: Port Moody at $1,047,900 a decrease of 0.9 per cent from the preceding month; Burnaby South at $1,458,500, a decrease of 0.6 per cent from the preceding month; and North Vancouver at $1,463,200 a decrease of 0.8 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were:  Vancouver East at $1,358,700 an increase of 0.9  per cent from the preceding month; Burnaby North at $1,345,000 a decrease of 2.2 per cent from the preceding month; and Coquitlam at $1,157,100, no change from the preceding month.

Townhouses

The benchmark price for a townhouse in Greater Vancouver at the end of September was $767,500, a decrease of 0.6 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,098,900 and Pit Meadows at $595,300. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $843,400, an increase of 0.4 per cent from the preceding month; North Vancouver at $937,100, a decrease of 2.4 per cent from the preceding month; and Vancouver West (not West Vancouver) at $1,098,900, a decrease of 1.5 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $$767,300, a decrease of 1.0 per cent from the preceding month; Burnaby South at $767,100, a decrease of 1.3 per cent from the preceding month; and Burnaby North at $729,500 an increase of 1.1 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in Greater Vancouver at the end of September was $651,500, a decrease of 0.4 per cent from the preceding month. The extremities of the average were West Vancouver at $1,021,200 and Maple Ridge at $348,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $654,500, an increase of 0.9 per cent from the preceding month; Vancouver West at $754,800, a decrease of 0.2 per cent from the preceding month; and West Vancouver at $1,021,200, a decrease of 3.8 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at 627,100, an increase of 0.1 per cent from the preceding month; Port Moody at $627,000, an increase of 0.8 pre cent from the preceding month; and Vancouver East at $548,300 a decrease of 0.7 per cent from the preceding month.

I can help

Please don’t hesitate to call me for whatever you need in Real Estate advice. I am always happy to provide you with detailed information on the property type and neighborhood you may be interested in. And if you are contemplating listing your property for sale, I can provide you with information on comparable homes sold in your area. In some cases, prospective sellers may want to do some renovations before listing; I can advise on what will make for the most optimal return on your investment. I also refer you to reliable tradespeople who do quality work at reasonable rates.

FRASER VALLEY

Ample supply creates excellent Valley prices at present; but new listings declining.

Autumn is lovely time to explore the delights of living in the Fraser Valley. Beautiful fall colors show off the comfortable lifestyle of Valley communities, and attractive prices continue to make the region a special place for young families and first-time home buyers. With a composite benchmark price of $818,900 for a residential property at the end of September, it’s easy to see why a Valley home is an excellent investment. Home purchases have been steadily increasing for the past three months across all property types, a sign of confidence in the Valley’s renewed market stability. I highly recommend prospective buyers take advantage of the excellent prices in the current market. There is an ample inventory with close to 8,000 active listings at the end of September. However, the rate of new listings in the Valley has decreased over the past four months, with the latest monthly decrease of 1.2 per cent from August. If the Valley’s new listings continue to decline, it is inevitable that prices would begin to move upwards. However, upward pressure has not been occurring yet as evidenced by composite benchmarks, which show a six-month decline of 1.3 per cent and three-month decline of 1.0 per cent. The monthly decline since August was also slight at 0.5 per cent. A sufficiently high existing inventory may account for these monthly declines, but simple supply and demand dynamics could cause a price rise at any time.

The Valley residential market is settling into what many see as its historical long-term stability, which would mean slight price rises with steady demand and new listings. My advice to the prudent buyer is not to take chance for a possible slightly lower price at this time. If you are eager to get into a home, current prices are very good by historical standards. Newly listed properties do not remain on the market for very long. Across the Fraser Valley in September, the average time to sell a single-family detached home was 46 days; for townhouses it was 37 days; and for condominiums it was 41 days. Across the three property types below, I have compared prices for those closest to the both sides of their benchmark averages in the Valley communities. I encourage you to take a look at these excellent choices, and If you would like some additional information on any property, be sure to give me call.

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of September was $950,000, a decrease of 0.4 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,306,800 and Mission at $637,600. The three municipalities closest to the benchmark on the higher side of the average were: Langley at $982,300, an increase of 0.1 per cent from the preceding month; Cloverdale at $985,800, an increase of 0.2 per cent from the preceding month; and South Surrey/White Rock at $1.306,800 a decrease of 1.5 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Surrey at $941,500, an increase of 0.8 per cent from the preceding month; North Delta at $875,500, no change from the preceding month; and Abbotsford at $791,700, a decrease of 1.5 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of September was $520,000, a decrease of 0.3 per cent from the preceding month. The extremities of the average were South Surrey/White Rock at $638,400 and Abbotsford at $382,100. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $553,500, a decrease of 0.3 per cent from the preceding month; North Delta at $556,200, a decrease of 4.2 per cent from the preceding month; and Cloverdale at $564,700, an increase of 1.7 per cent from the preceding month.  The three municipalities closest to the benchmark on the lower side of the average were: Langley at $486,300, a decrease of 0.5 per cent from the preceding month; Mission at $429,700, a decrease of 2.5 per cent from the preceding month; and Abbotsford at $382,100, a decrease of 0.4 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of September was $405,500, a decrease of 0.9 per cent from the preceding month. The extremities of the average were South Surrey/White Rock at $491,300 and Abbotsford at $312,200. There were only two municipalities on the higher side of the average: Cloverdale at  $450,200, a decrease of 0.3 per cent  from the preceding month; and Surrey/White Rock at $491,300, a decrease of 1.5 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Surrey at $402,000, a decrease of 1.5 per cent from the preceding month; Langley at 400,200, a decrease of 2.5 per cent from the preceding month; and North Surrey at $394,500, a decrease of 0.4 per cent from the preceding month.

I am here to help

Please let me know how I can assist you. If you are interested in buying, I can provide you with more detailed market information on your desired region and property type. I am also well experienced in finance and can assist you with your mortgage planning.  In the event that you are thinking about listing, I can advise you on the optimal price range for your property with comparisons to other recent and historical sales in your neighborhood. And for anyone contemplating renovations, I have an excellent list of reliable, quality tradespeople at affordable rates.