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.

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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

It Just Got Harder to Buy a Home in BC….

Did you know new mortgage changes and regulations are coming that will have a significant impact for home buyers?  Effective January 1, 2018 the new Residential Mortgage Underwriting Practices and Procedures (Guidelines B-20) will be applied to all federally regulated lenders.

The changes to the guidelines focus on:

  • the qualifying rate for uninsured mortgages
  • expectations around loan-to-value (LTV) limits
  • restrictions to purchases designed to work around those LTV limits.

What does this mean for homebuyers? I spoke with Geoff Lee of GLM Mortgage Group to give you the full details.

“The new guidelines will require that all conventional mortgages (those with a down payment higher than 20%) will have to undergo stress testing. Stress testing means that the borrower would have to qualify at the greater of the five-year benchmark rate published by the Bank of Canada (currently at 4.89%) or the contractual mortgage rate +2% (5 year fixed at 3.19% +2%=5.19% qualifying rate).”

These changes effectively mean that a buyer’s borrowing power is directly impacted—up to a decrease of 25%. Let’s look at an example:

BUYING A HOME

When buying a home with these new guidelines, borrowing power is also restricted. Using the scenario of a dual income family making a combined annual income of $85,000 the borrowing amount would be:

Current Lending Guidelines 

Qualifying at a rate of 3.34% with a 25-year amortization and the combined income of $85,000 annually, the couple can purchase a home at $560,000

New lending Guidelines

Qualifying at a rate of 5.34% (contract mortgage rate +2%) with a 25-year amortization and the combined annual income of $85,000 you would be able to purchase a home of only $455,000.

OUTCOME: This reduces your borrowing power by $105,000.  I’m sure you’ll agree that’s a significant amount.

*For more information on the other guidelines, read GLM’s full article HERE

In the above scenario, it is a scary thought that you would qualify for 20-25% less than you would under today’s current lending guidelines. In our Fraser Valley markets, this is exceptionally significant when the average detached home price is well above $800,000.

What can be done?  If you are thinking of buying, you may want to do so before these new guidelines take full effect in January of 2018. The market has maintained high median prices and low inventory over the past several months—and with the rate increases plus this new announcement- it is getting harder and harder to buy a home. Don’t wait- give me a call today and let’s meet to discuss how you can win! And remember, here at Young Real Estate Group, we get you more.

Snap Stats September Edition

Housing has become a valued asset in an investment portfolio. Greater Vancouver has become viewed as a hotspot for global investors. This month, statistics explain why adding real estate to your portfolio just might be the way to go.

The market speed for the Fraser Valley is 36%  which officially makes it a seller’s market. This is due to a number of factors, but let’s start with sales. Total sales last month were 1464 which is 26% greater year over year and 14%  last month over month.

Next up, sale price.  The median sale price was $682,000 which is a 15% increase over this time last year and a 1 percent increase over the previous month.

Finally,  active listings. There were 4060 active listings last month which is a 9% decrease over this time last year and a 5% increase month over month. A property was on the market for 16 days before selling which is no change from one year ago and 23%  more than the previous month.

If you would like to see what the market stats for you specific area are, or would like to talk about listing your home please do not hesitate to contact us.

Don’t forget to visit our website too and check out our top tips for buying or selling a home…remember, at Young Real Estate Group we get you more!