Market Update: January 2018

 

 

Another month has come and gone–and that means it’s time for a market update! This month was a strong month for sales in real estate. The market speed was listed as 41%  making it a seller’s market, however, the market speed is down slightly from the previous month. The Greater Vancouver Real Estate Board states that:

“High prices, increasing interest rates and new mortgage rules are all expected to reduce housing demand in 2018.”

With that in mind, let’s take a look at the stats for this month.

Total listings: 2,579 (down from 2,882 the previous year)

Total Sales: 1065 (up 847 from previous year)

Sale Price: 17% increase from the previous year

So what does this mean moving forward? Homes are still selling at an above average rate and at an above average price. This is the perfect time to list your home because the full effect of the mortgage guideline changes have not taken full effect.

Are you or someone you know thinking of selling? Give me a call today: 1.604.720.5353 or info@alyoung.ca

Advertisements

What These New Mortgage Rules Mean For You

NEW_MORTGAGE_RULES_2018

If you are one of the 37% of Canadians who are not aware of the new mortgage rules, then this article is for you!

On January 1, 2018, the Office of the Superintendent of Financial Institutions (OSFI) made significant changes to the B-20 guidelines that have significant impact on those looking to purchase a home.

These new changes indicate that all uninsured mortgage borrowers (those with down payments of 20% or more) must now qualify against the Bank of Canada’s five-year benchmark rate (currently sitting at 4.99%) or at their contractual mortgage rate + 2% additional. For example, if your contract rate is 3.34% you must qualify at 5.34%. The purpose of this is to ensure that borrowers can service their mortgage debts as interest rates rise (as they are predicted to do so in 2018).

As some of you may recall, similar measure were issued in October of 2016. The stress-testing regulations at the time only applies to those with an uninsured mortgage (those with less than 20% down). These new rules and updates to B-20 essentially mean that ALL mortgages will have to abide by stress testing.

 

To better understand how this will specifically affect buyers, we spoke with Mortgage Expert, Geoff Lee of GLM Mortgage Group and he broke it down for us in the table below*

Picture1*based on a dual income family making a combined annual income of $85,000

As you can see, your borrowing power is drastically changed. You are able to borrow $105,000 less with these new changes, meaning you qualify to purchase a home worth $105,000 LESS than before these new rules were introduced.

However, this is not all bad news for first-time buyers. This can effectively cool a relatively hot market here in the Fraser Valley and Vancouver. It can also limit the competition and allow for more buying options for buyers who are able to put the 20% down and pass the stress test.

This announcement also comes at a time when condo and townhome development is at an all-time high, providing affordable, accessible housing options for many buyers.

Buyers can also look to accommodate these changes by laying out a budget and sticking to it! Re/Max has a great layout for this:

  1. Maintain a financial buffer of at least three to six months, to soften the blow of interest rate increases and unexpected bumps in the road.
  2. The mortgage you qualify for and what you can actually afford are two very different things. Look at your lifestyle, now and in the future, and consider how your mortgage payments and ongoing home costs will impact you. When buying a home, you might have to make some compromises on lifestyle in the interest of homeownership.
  3. Buying a home involves more than just mortgage payments. Ongoing expenses include maintenance, home insurance, property taxes, and utilities.

Entering the market in 2018, or looking to purchase a new home need not be a stressful or worrisome experience. We work with some fantastic brokers who can help you get a sharper rate and we can help you find your next home well within your budget. Give us a call today and let us help you: 604-533-3491.

Market Update: December 2017 Stats

Happy New Year Everyone! This year is quickly shaping up to be one of the best ones in real estate yet. The projections are for the Fraser Valley to remain in a seller’s market for the month of January and well into 2018. If you haven’t seen the projections yet, click here to view the Re/Max real estate market outlook.

So what did the market do in December? View the table below to see the month over month and year over year comparison. We have also included the stats for each individual area below.

December 2017 November 2017 December 2016
Number of Listings 2453 3410 2403
Sale Price $701,000 $675,000 $600,000
Total Sales 1205 1532 854
Days on Market 18 16 29

Inventory

If you are interested in learning more about the stats for your specific area/location, please give me an email or call and we would be happy to send them your way.

RE/Max 2018 Housing Market Outlook

2018 is almost here, and with it comes many questions regarding the 2018 Housing Market. The following is an excerpt from RE/Max Canada’s 2018 Housing Market Outlook report. If you would like to discuss more, I would be happy to sit down with you! My email is info@callyoung.com and phone: 604-533-3491

Read through the report and get in touch with us if you have further questions!

RE/Max Report

“THIS PAST YEAR SAW THE SINGLE-FAMILY DETACHED HOME AND CONDO MARKETS DIVERGE ON DISTINCTLY DIFFERENT PATHS IN CANADA’S TWO HIGHEST-PRICED REAL ESTATE MARKETS, GREATER VANCOUVER AND THE GREATER TORONTO AREA, AS REVEALED IN THE 2018 HOUSING MARKET OUTLOOK.

The trend is expected to continue into 2018 as a mix of relative affordability for condo units and price appreciation for detached homes in recent years, combined with government policy changes in both markets, has helped push an influx of buyers toward condo ownership.

In Greater Vancouver, demand for condos continues to outpace supply, resulting in the average price of a condo rising an estimated 16 per cent year-over-year, from $553,604 in 2016 to $643,778 in 2017. The GTA’s condo market also saw price appreciation of 22 per cent in 2017, as the average sale price for a condo rose to an estimated $523,437, up from $429,241 in 2016. As condo prices rose, sales for single-family detached homes declined 25 per cent in Greater Vancouver and 22 per cent in the GTA year-over-year between January and the end of October 2017.

The RE/MAX 2018 average residential sale price expectation for Canada is an increase of 2.5 per cent as the desire for home ownership remains strong, particularly among Canadian millennials.”

Click HERE to read the full report and summary

Market Update: November Stats

The November Fraser Valley Real Estate Stats are in! This November saw a steady stream of listings and the price-points of homes remained stable from October. The market remains to be a SELLERS MARKET with a 45% Home Selling Ratio.

The stats for this month were:

  November 2017 Stats October 2017 Stats November 2017 Stats
Number of Listings 3410 3674 3692
Sale Price 675, 000 668, 000 586, 000
Total Sales 1523 1642 1111
Days on Market 16 16 26

 

The BC Real Estate Association was quoted as saying “The combination of weakening consumer demand and a surge in new home completions next year is expected to induce  more balanced market conditions, producing less upwards pressure on home prices.”

As stated above, a more balanced market is expected to occur in 2018-essentially having prices level off and inventory become more readily available. This is excellent news for buyers wanting to break into the market.

One final consideration for December and 2018: The new mortgage regulations. These new regulations will effect many by reducing their borrowing power up to 20%! They come into full effect as of January 1, making now an advisable time to buy or sell a home!

If you are interested in learning more about the stats for your specific area/location, please give me an email or call and we would be happy to send them your way.

Canada’s National Housing Strategy at A Glance

Canada_Housing_Strategy

Everyone deserves a safe and affordable place to call ‘home,’” Prime Minister Justin Trudeau said in a statement. “Canada’s first ever National Housing Strategy is a once-in-a-generation vision to reduce homelessness, support community housing and shelter spaces, and address challenges of housing affordability.”

We took a major step forward on housing today, and we will continue to deliver initiatives that strengthen the middle class and lift more Canadians out of poverty. –The Right Honourable Prime Minister Justin Trudeau

The strategy was developed by the Government of Canada through consultations with Canadians who have encountered obstacles with respect to quality affordable housing, experts, stakeholders, as well as provincial, territorial and municipal governments.

“Our Government is establishing a federal leadership role in housing,” said Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for CMHC. “The National Housing Strategy will create a new generation of housing in Canada. It will promote diverse communities and will build housing that is sustainable, accessible, mixed-income and mixed-use that will be located near transit, work and public services.”

Part of the National Housing Strategy includes the $4-billion Canada Housing Benefit, which will be funded jointly by the federal, provincial, and territorial governments. Launching in 2020, the Canada Housing Benefit will put funds support into the hands of Canadians living in social housing, those on a wait-list and those living in private residences but struggling financially. The Canada Housing Benefit will deliver an average of $2,500 per year to approximately 300,000 households across Canada.

For more information, visit CMHC.

Thanks to Remax for sharing this article.

4 Home Updates That Get You Top Dollar

Right now is the perfect time to list your home. Mortgage changes are coming  January 1, 2018 that could reduce buying power by uo to 20%.  Also, with interest rates rising, and market prices still high, listing your home now makes sense. However, before you put a For Sale sign on your lawn, here are 4 home updates that can help get you top dollar for your home.

  1. UPDATE FLOORING

Flooring is one of the easiest and most cost-effective ways to put value back into your home. Updating your floors can instantly update the entire look and feel. A simple swap is to replace outdated carpets with hardwood or laminate, and for bathrooms and kitchens look to classic, simple tile designs.

  1. SWITCH OUT HARDWARE AND FIXTURES

Kitchens and bathrooms can instantly make a home appear outdated. One simple update that is to switch out fixtures and hardware. Replace dated brass hardware on cupboards and drawers with a more modern, clean look. Also, consider updating your faucets and light fixtures too-these are budget friendly and can be installed in a few hours.

  1. FRESH PAINT

One of the easiest ways to give your home a facelift is to refresh your paint colours! Choose light and neutral, inviting tones that will work for all buyer types. In addition, select a single colour to use in each room. Keeping it simple, clean, and neutral will add value back into your home and instantly make it easier for buyers to see themselves living there.

  1. DECLUTTER AND DEPERSONALIZE

Your home is just tha…your home. It has pieces of you and your family throughout. However, when you are selling it is important to remove some of those more personal items. That wallpaper you love, the quote over your entry way, or that funky piece of artwork might not appeal to all buyer types. Remove or place these things in storage. At the same time, look at your home objectively and pinpoint any areas that are “clutter zones”. Sort and organize these areas and put any items you don’t use day-to-day in storage as well.

By taking the time to update your home and showcase its best features you will instantly see a return on your investment. Buyers are more willing to buy a home that they can picture themselves living in.  Keep in mind that at Young Real Estate Group we have a network of trusted individuals who can help you with these projects! We know moving and listing a home can be a stressful time…and having someone do it for you just makes life easier! Give us a call today and we will be thrilled to meet  you and discuss the next steps in getting your home ready to sell for top dollar!

604.720.5353