Market Update-May 2018

This month’s real estate stats are in! May was a busy month in Real Estate; with a 33% Homes Selling Rate the Fraser Valley Real Estate Market is still a seller’s market.

However the numbers are down slightly from last month:

  • 4859 Active Listings were listed in May
  • 1591 Sales this month
  • 10% increase overall in Sale Price for Homes

These numbers have fallen slightly due to the mortgage qualificatins hindering buyers capability to increase their buying power. Over the next several months, the impact of these qualifications is expected to soften due to people re-evaluating their budgets and finances to better accomadate these new mortgage regulations.

This article from Re/Max contains a few pieces of great advice on how to better afford a home and set yourself up for financial success!

Here are the breakdown of statistics for the Fraser Valley:

Real_Estate_Fraser_Valley

Give me a call if you would like to chat about the statistics in your area and how we can help get you more!

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Market Update: April 2018

 

April was an interesting month in Real Estate! As the CMHC Chief Economist pointed out:

“The local economy has been very strong with jobs attracting people and increasing demand but without the supply, that demand goes into house price increases.” -CMHC Chief Economist

The increase in demand without the necessary supply leads to an increase in home prices. With that in mind, let’s look at this month’s stats!

The market remained as a Seller’s Market for the Fraser Valley. Total listings came in at 4014 an increase from last year which was 3169.

Total sales this month totaled 1512, a drop from last year’s record of 1989.

However, due to the increase in demand but a decrease in supply the sale price reached 20% above last year’s. The median sale price was at $751,000. An increase from last month’s $719,000.

Inventory

Interested in seeing more detailed statistics about your area? Send me an email or call me and I will get you a copy delivered right to your inbox.

 

Market Update: March 2018

Real Estate_Stats

A quick snapshot of the Fraser Valley’s real estate market today covering the following areas: Surrey, South Surrey, North Delta, Cloverdale, Langley, Abbotsford, and Mission. All single family home, townhome and condo data sourced from the FVREB MLS®.

Fraser_Valley_Real_Estate

The Fraser Valley Real Estate Market is continuing to surge forward with no drop in sight. Springtime typically spurs along the market and gives sales a boost, making this an ideal time to place your home on the market.

This March the market speed indicator sits at 46% making the Fraser Valley a Sellers Market.

Total sales at the end of March totaled: 1488, up from last months total of 1237.

The median sales price of homes across the Fraser Valley came in at $719,000, dropping just 1% from last months high of $723,000.

There were a total of 3212 listings, a rise of 13% from February’s 2836.

Are you interested in listing your home or perhaps want to see the stats in your area? Get in touch with us today! 

 

Market Update: February 2018

 

With the announcement of the 2018 BC Budget, the NDP is working to ‘moderate the market’. Some of the changes outlined in the budget relating to housing include:

1. Moving to stop tax evasion in pre-sale condo reassignments.
2. taking action to end hidden ownership.
3. strengthen provincial auditing and enforcement powers.

With that in mind, the market over the next few months will be in the perfect position to place a home on the market.  Below is a quick overview of the market by area in the Fraser Valley:

Inventory

If you are interested in finding out the snapstats for you area, get in touch with me, I would be happy to send them to you!

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

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.

What’s just Happened in Real Estate?

If you look at any major news site at least one of the headlines will be about Real Estate. With the Bank of Canada’s rate hike 2 weeks ago, along with low inventory, and fast-moving sales, real estate today can be confusing for the typical consumer. To make things easier on you, we’ve examined 3 trends and market changes that have created the current state of real estate.

 

  1. Bank of Canada Rate Hike.

On September 6, the Bank of Canada quietly raised its interest rate another 0.25%. This brought the rate up from 0.75% to 1%. Why did this happen? With Canada’s record year of economic growth, a higher interest rate is needed to cool the economy and ensure that inflation doesn’t get out of hand.  This can also have implications on mortgages. The lending rate of variable mortgages is tied to the Bank of Canada’s prime lending rate and it can impact the amount of homeowner’s payments. For more about interest rates and how they affect you click HERE.

 

  1. Continued Low Inventory

According to my Snap-Stats, in August the total number of listings was down from last year. The total listed homes came in at 3,884 this year, compared to 4,174 in 2016. This is an ongoing trend in The Fraser Valley and Metro Vancouver detached home market. As fewer homes become available, pricing continues to push upward. This is great for sellers but creates the perfect storm for buyers looking to get into the market.

 

  1. A Shift to Townhomes and Condos

August Sales numbers were pushed above average levels due to a demand for condos and townhomes. Last month, 3,043 residential properties sold, marking a 22.3% increase compared to 2,489 sales in August of the previous year, and a 2.8% increase over this July. When compared to the August sales average from the last decade, 2017 sales were 19.6% above average. This surge in sales in Metro Vancouver is being led by first time homebuyers looking to buy property listed between $350k – $750k.  With demand rising, developers are working to keep building, and many new developments are planned for 2018.

 

The Metro Vancouver and Fraser Valley real estate markets continue to change. Each day new statistics show that we are currently in one of the best markets for sellers, and also one of the most difficult for 1st time homebuyers. However, to the buyers – do not get discouraged! At Young Real Estate Group, we are committed to helping you find the right home in your budget – no matter what it takes. For those thinking to sell, don’t hesitate. Now is one of the best times in Real Estate to place a “For Sale” sign in your yard.

To learn what your home is worth, or to buy a home, please contact us. We happy to serve you whether you’re selling or buying. Call us at 604-533-3491 or email by clicking here.