 News
Fraser Valley Real Estate Board News Release
News Release: August 4, 2010
FRASER VALLEY HOME BUYERS TAKE
HOLIDAY IN JULY
(Surrey, BC) – The Fraser Valley
Real Estate Board (FVREB) processed 1,101 sales on its
Multiple Listing Service (MLS®) in July, a decrease of
47 per cent compared to the 2,089 sales during the same
month last year and down 39 per cent compared to June.
“Last year, we experienced the
busiest July in our history and this year it was the
quietest in a decade,” says FVREB President, Deanna
Horn. “Although the real estate market typically slows
in the summer months, we didn’t anticipate this level of
change.
“We attribute it to a combination
of factors, the beautiful weather, interest rates edging
up and reaction to the Harmonized Sales Tax in BC –
although the HST does not apply to resale housing, not
everyone knows that,” explains Horn.
“The plus side of this market is
highly favourable conditions for buyers – potentially
the best they will be this year due to the significant
volume of listings currently, which is already showing
signs of decreasing.”
In July, Fraser Valley’s MLS®
received 25 per cent fewer new listings, 2,355, compared
to the 3,153 new listings received in June. At month’s
end, the total active inventory was 10,852, 14 per cent
more than was available in July 2009, however 2 per cent
fewer than in June.
For the first time since January
2009, benchmark prices for the three main residential
property types: single family homes, townhomes and
condos, decreased compared to the previous month. The
benchmark price for Fraser Valley detached homes in July
was $510,470, down 1.5 per cent compared to June and 6.9
per cent higher compared to $477,420 in July 2009.
The benchmark price of Fraser
Valley townhouses in July was $325,856, a 0.7 per cent
decrease compared to June and a 6.9 per cent increase
compared to July 2009 when it was $304,940. The
benchmark price of apartments decreased by 0.8 per cent
from June and increased 4.4 per cent year-over-year
going from $234,178 in July 2009 to $244,368 in July
2010.
Information and photos of all
Fraser Valley Real Estate Board listings can be found on
the national, public web site
www.REALTOR.ca. Further market statistics can be
found on the Board’s web page at
www.fvreb.bc.ca. The Fraser Valley Real Estate Board
is an association of 2,980 real estate professionals who
live and work in the communities of North Delta, Surrey,
White Rock, Langley, Abbotsford, and Mission.
News Entry
News Release: July 15, 2010
It is hard to believe we are halfway through the
summer and more than halfway through 2010. The HST
has now been in effect for two weeks. It is too hard
to tell at this point what effect it will have on
the BC Economy. I am sure people will think twice
about where they spend their money. It doesn’t mean
people will stop spending altogether. I was at the
spa yesterday and can tell you the HST hasn’t
stopped people from treating themselves to a
pampering session. Although many of the restaurants
seem to have quieted down some. It is hard to
imagine the 15 – 20% tip after the 12% HST has been
added to my bill. OUCH.
Although we saw a 23%
increase in sales between May and June of this year
there was also an 8% decrease in sales between June
2009 & June 2010. The year 2009 was a slow year in
real estate. So why were there less sales this June
than last June? From my experience many buyers were
hesitant to purchase so close the implementation of
the HST. They were worried that prices would drop
significantly or there would be a major market
correction post HST implementation. We are only two
weeks in and YES we are seeing price reductions. Is
this because of the HST? Not exactly. There are a
lot of homes on the market. A lot more homes than
there are buyers. These price reductions would have
had to happen regardless. The buyers that decided to
wait to buy will buy. It is just a matter of when.
There are definitely a lot of homes for them to
choose from and the prices are becoming more
attractive every day. Interest rates are still very
reasonable.
If you are thinking about purchasing a new home
but unsure if now is the time please give me a call.
I would love to sit down with you to discuss your
options. Maybe you will be surprised what you can
afford.
It is also a great time to get into the
investment market. Looking to add a rental property
to your real estate portfolio? I see many great
rental properties every day. Some of which are
already tenanted with the rental income covering
well over the mortgage payment amount. Looking for
commercial properties or foreclosures? There are
many opportunities right now regardless of the
property type you are looking to purchase.
Enjoy the summer & the wonderful sunshine we have
been having.
Fraser Valley Real Estate Board News Release
News Release: July 5, 2010
Fraser Valley real estate market picks up in June
(Surrey, BC) – Sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) increased by 23 per cent in one month going from 1,477 sales in May to 1,815 in June. June’s numbers represent an 8 per cent decrease compared to the 1,982 sales during the same month last year.
Deanna Horn, president of the Board, says, “Historically, it’s not unusual for June sales to outperform May in the Fraser Valley. This has happened in nine of the last twenty years.
“However, a 23 per cent increase in one month is significant. We were busier than expected and it could be due to the combined effect of mortgage rates edging down, the Harmonized Sales Tax coming into effect July 1, as well as the tremendous selection of homes available in the Fraser Valley.
“Although we’re seeing a decrease in the number of new properties coming on stream, June buyers have only had this volume of homes to choose from two other times in our history, in 1995 and 2008.”
The total active inventory on Fraser Valley’s MLS® at month’s end was 11,110, 19 per cent more than was available in June 2009. The Board’s MLS® received 9 per cent fewer new listings in June compared to May, good news according to Horn.
“Listings typically do decrease in the summer, which will continue to stabilize the market.
“Over the last few months, we’ve seen residential benchmark prices leveling. Year-over-year, price increases may still appear dramatic depending on the property type and location because at this time last year, we hadn’t yet begun our recovery phase.
“In a stabilizing market, consumers know to rely on the expertise of a REALTOR® because prices are highly local and competitive.”
In June, the benchmark price for Fraser Valley detached homes was $518,355, a 9.9 per cent increase compared to $471,788 in June 2009.
The benchmark price of Fraser Valley townhouses in June was $328,080, a 9 per cent increase compared to $301,103 in June 2009.
The benchmark price of apartments increased by 6.6 per cent year-over-year going from $231,014 in June 2009 to $246,351 in June 2010.
Fraser Valley Real Estate Board News Release
News Release: June 28, 2010
MAJORITY
OF ATTACHED HOMES IN FRASER VALLEY FALL UNDER HST
THRESHOLD
SURREY, BC – The Fraser Valley will offer buyers of new homes noticeable savings after July 1 when the Harmonized Sales Tax (HST) comes into effect, according to the Fraser Valley Real Estate Board.
Deanna Horn, President of the board explains, “Since the majority of new townhomes, apartments, as well as select, new single family homes in our region sell for less than $525,000, the BC new housing rebate threshold in BC, the impact of the new HST will be lessened.”
On July 1, the seven per cent Provincial Sales Tax (PST) will join the five per cent Goods and Services Tax (GST) for a combined HST rate of 12 per cent. The HST will apply to the sale price of all new residential homes however; the BC government will provide a rebate up to a maximum amount of $26,250. According to the provincial government, homes that sell for up to $525,000 will cost the same or less than what they would have when only the GST applied.
“When the HST was first announced, we were concerned for our clients,” explains Horn, who represents nearly 3,000 REALTORS® working in the Fraser Valley.
“Although the HST impacts new home purchases more dramatically than resale, we’re pleased that through our lobbying efforts alongside other BC housing industry representatives, we were able to convince the government to increase both the threshold for the new housing rebate, and the amount of the rebate itself.
“The result is that most buyers of new, attached homes and select detached homes in the Fraser Valley will be able to maximize the benefit of the government’s rebate program. Just recently, I was recommending a lovely new, single family home in Cloverdale to one of my clients with an asking price of $519,000. A similar home in other Lower Mainland communities could be considerably higher in price and after July 1, will result in higher taxes because it is above the HST threshold.”
According to Canada Mortgage and Housing Corporation (CMHC), the average price of new townhomes in Surrey in May was $475,154 and in Abbotsford $403,469. The average price of new detached homes in Abbotsford in May was $532,129. CMHC also reports new apartments – 1,000 square feet in size – are selling currently on average for $294,860 in Surrey; $232,800 in Abbotsford; and, $273,880 in Langley.
HST
News Release: June 14, 2010
We are less than three weeks away from the HST
implementation. This has been a topic of choice over the
last several months. I have spoken with many individuals
and business owners with respect to the HST. Many
individuals are upset & annoyed. Even if people agree
with the new tax they disagree with how this all came
about. The business owner’s I have spoken to don’t feel
it will affect their business too much. Many pointed out
to me that their companies already charge GST & PST.
Over the next several months people may be a little
hesitant to make certain types of purchases that will
charge HST but may have been PST or GST exempt in the
past. Consumers will expect to have some kind of
discount on the price of these goods to make up for the
additional tax they will be paying. Isn’t that the point
anyway? The PST is currently embedded in the cost of
these items. Therefore if we are to pay HST on these
items shouldn’t we be allowed some kind of discount so
that we aren’t being overcharged?
I think people feel the same way about the real
estate market right now. There has been a lot of
negative press stating that prices are inflated and will
come down significantly after the HST comes into effect.
People are hesitant to buy new homes right now. If they
purchase a new home right now with their deal closing
after July 1st they will have to pay 12% tax. If they
wait will the price of that home drop? And by how much?
We can only wait and see. If the prices of new homes
drops will the prices of used homes drop as well? How
will the developers proceed? Will they include HST in
the price of the home? Keep in mind some developers are
already do include the net tax.
There is an over abundance of listings in the Fraser
Valley right now. We are seeing price reductions happen.
I assume we will see many more. HST or NO HST the
situation is the same. We are in a buyer’s market. If
sellers really want to sell they will need to price
their property accordingly. They will need to understand
that there are way more listings than there are buyers
out there. Your property CAN sell but price is going to
make all the difference.
Housing Market Push and Pull: Economic Growth Versus
Affordability
BCREA Housing Forecast - Second Quarter 2010
Read the Article...
Fraser Valley Real Estate Board News Release
News Release: June 2, 2010
FRASER VALLEY BUYERS ENJOY
ABUNDANT SELECTION
(Surrey, BC) – Property buyers continued to see an
increase in selection while sellers faced more
competition as listings grew and sales decreased on
Fraser Valley’s Multiple Listing Service® (MLS®) in May.
The Fraser Valley Real Estate Board posted 1,477 sales
in May, a decrease of 2 per cent compared to the 1,501
sales processed on the MLS® during May 2009. At the same
time, the Board received 3,457 new listings, taking the
number of active listings to 11,411, an increase of 14
per cent compared to the 10,047 listings available
during May of last year.
Deanna Horn, president of the Board, puts the numbers
into context. “May’s sales were 16 per cent below our
ten-year average, 1,760 sales for that month.
Considering how busy the market has been in the last
decade that represents solid sales activity, slower yes,
but steady.
“What’s changed most is the increase in inventory. The
last time this many homes were available on Fraser
Valley’s MLS® in May was in 1995.”
Horn adds, “Tremendous selection allows buyers the
luxury to find the right home, comparison shop and gives
their REALTORS® the ability to negotiate hard on their
behalf.
“For sellers, getting specific advice about home values
in your local neighbourhood is crucial in a competitive
market.”
In May, the benchmark price for Fraser Valley detached
homes was $515,375, a 10.6 per cent increase compared to
$465,939 in May 2009. The average number of days to sell
a detached home in May was 43 days, one day faster than
it was in May of last year.
The benchmark price of Fraser Valley townhouses in May
was $328,295, a 10.1 per cent increase compared to
$298,308 in May 2009. Townhomes in May sold on average
27 days faster than they did a year ago – 39 days
compared to 66 days in 2009.
The benchmark price of apartments increased by 8.6 per
cent year-over-year going from $232,170 in May 2009 to
$252,221 in May 2010. The average days to sell in May
for apartments in the Fraser Valley was 51 compared to
69 days during the same month last year.
May/June 2010
The real estate market in the Fraser Valley remains strong. In April there were 1793 units sold which is an increase of 38.7% over April 2009. Buyers are motivated by the upcoming HST and with interest rates increasing. Although we are seeing many sales happen we are seeing even more listings that are not selling. There is an unusually high number of listings on the market. There were 3670 new listings in the Fraser Valley in April alone. There are significantly more sellers than buyers and buyers are able to use this to their advantage. Overall the market is moving. We have seen great improvement over last year. There is still a lot of negative talk. Some people fear that the recession hasn’t come. Others feel like we are in the clear...that 2009 was the worst of what we will see here in BC. Which is it? Will the HST have a real negative effect on the housing market in BC? Will the housing market come to a standstill? Truthfully I don’t think we have that much to worry about. At first people may be a bit hesitant to buy a new home. You cannot incorporate HST into your mortgage. It has to be paid in cash. Mortgage rules have all tightened. What does this all amount to? Simply put, you will need more money in your pocket to qualify to buy
new property after July 1st. This is TRUE...but it is also NOT TRUE. The Provincial Government is offering new housing rebates of 71.43% of the provincial portion of the HST to a maximum of $26,250.00. There is also a 36% savings on the federal portion of the HST. This is a substantial savings. The government is even offering HST rebates on rental properties! On an average new home you shouldn’t notice a cost difference as long as this rebate is in effect. You can learn more about the HST by visiting this site
http://hst.blog.gov.bc.ca/faqs/new-housing-rebate/. Or contact me with any housing HST questions you might have. The most important thing is to be informed.
FRASER VALLEY REAL ESTATE BOARD
News Release: May 4, 2010
BUSY HOUSING MARKET MEANS MORE
CHOICE FOR FRASER VALLEY BUYERS
(Surrey, BC) – The Fraser Valley
Real Estate Board’s Multiple Listing Service (MLS®) saw
close to record levels of listings in April, in addition
to strong sales and prices.
Deanna Horn, president of the
Board, says, “This is a typical, healthy spring market
for the Fraser Valley. We received an abundance of new
listings in all price categories giving buyers
tremendous opportunity, while sellers saw a typical
detached home sell in an average of 40 days for 13 per
cent more than in April of last year.”
The Fraser Valley Real Estate
Board received 3,760 new listings in April compared to
2,477 new listings received during the same month last
year, an increase of 51.8 per cent. The new inventory
increased the number of active listings to the second
highest April on record, reaching 10,635, with only
April 1995, at 11,891, offering more selection.
Along with the surge in listings,
April sales remained strong, similar to the same month
in 2007 and 2008, finishing with 1,793 total units sold,
an increase of 38.7 per cent compared to the 1,293 sales
sold in April of last year when the market was beginning
to recover.
“A number of factors are
motivating buyers. Spring is one of the most popular
times of year to house hunt, plus interest rates are
edging up and buyers are inquiring about the upcoming
Harmonized Sales Tax in BC.”
Horn explains, “The Fraser Valley
will offer savings when the HST comes into effect
because many new homes in our region fall under the new
housing rebate threshold.”
Thanks to lobbying efforts by
REALTORS® and other housing industry advocates, the
threshold to receive the maximum BC new housing rebate
was increased to $525,000 from $400,000, the
government’s originally proposed limit. Horn says, “It’s
important for buyers to know that the majority of new
townhomes and apartments in the Fraser Valley cost less
than $525,000, including some single family detached
homes.”
In April, the benchmark price for
Fraser Valley detached homes was $520,423 – reflecting
all residential sales on the MLS®, of which
approximately 10 per cent were new homes. That benchmark
price is 13.1 per cent higher than it was in April 2009,
when it was $460,229.
The benchmark price of Fraser Valley
townhouses in April was $326,367, a 10.6 per cent
increase compared to $295,078 in April 2009. The
benchmark price of apartments increased by 8.3 per cent
year-over-year going from $230,337 in April 2009 to
$249,453 in April 2010.
Information and photos of all Fraser Valley Real Estate
Board listings can be found on the national, public web
site
www.REALTOR.ca. Further market statistics can be
found on the Board’s web page at
www.fvreb.bc.ca. The Fraser Valley Real Estate Board
is an association of 2,978 real estate professionals who
live and work in the communities of North Delta, Surrey,
White Rock, Langley, Abbotsford, and Mission.
MARKET FORECAST & NEWS
The BCREA reported that there were 63% more MLS® home
sales in February 2010 compared to the same month last
year and the average MLS® residential price climbed 17
percent over the same time period. In the Fraser Valley
Real Estate board we saw over 100% more sales this
February in comparison to February 2009.
Click
here to view the entire report released by the BC
Real Estate Association.
Consumer confidence has increased significantly over the
last year. One year ago there were over 7000 houses on
the market in the Fraser Valley Real Estate Board with
only about 8% of those selling. This year we have less
than 6800 listings and over 16% are selling at much
higher prices. We’ve seen prices increase an average of
10% this past year. With interest rates forecasted to
increase, the HST coming in to effect in July and new
rules from CMHC buyers are more urgent than ever. First
time home buyers are worried that if they don’t buy now
these new rules will put their home buying plans on hold
for much longer than they’d like. Are we seeing a
housing bubble form? Personally I don’t think so. Sure
we have seen twice as many houses sell this February
than last but keep in mind the market was very unstable
last year. They are still reporting ONLY 16% OF THE
HOUSES LISTED IN FEBRUARY SOLD. This is not a high
number. The consumer is more confident than last year
but many buyers are still playing it cautious. The
higher priced homes are still sitting on the market
longer and many are not selling. Some product is moving
quickly; especially homes with suites. Is right now the
time to buy? What will happen once the HST comes in?
Will the housing market slow down & prices decrease? I
cannot predict the future...having a real estate license
doesn’t make me an economist. We also need to remember
that the media doesn’t know what will happen either.
Nobody really does. What I do know is that we need to
live within our means. Don’t overextend yourself on your
home purchase. Be prepared for the unknown so that you
will still be enjoying your property in 5 or 10 years
and will (hopefully) be reaping the benefits of its
increase in value!
Real Estate in 2009
In the beginning of 2009 the real estate sales were extremely slow. It’s typical to see a slowing down of sales throughout the winter months but this was extreme. People were hesitant to purchase anything. Sales hit an all time low. Property values dropped significantly between 2008 & the beginning of 2009. Many people feared the worst. Especially those who bought their homes when prices hit an all time high in 2006. Were they going to have problems refinancing their home when the time came due? Were we going in to a recession? The media sure seemed to think so. All the signs seemed to be there. Big companies were closing their doors. Unemployment rates were hitting an all time high. Banks tightened up on the funds they had to lend. In the spring of this year sales seemed to pick up slightly. Possibly prices had hit rock bottom. Interest rates were extremely low. Some people who were unable to purchase before now found them qualifying for a mortgage. They were not going to miss out on the opportunity to own a home. Sales have been increasing steadily ever since. August and September were record breaking months for sales in the Lower Mainland. The Fraser Valley Real Estate Board reported a 122% increase between sales in October 2008 and October 2009. November has been just as incredible so far. We are experiencing a much different problem now. This new problem is lack of listings on the market. Although sales have increased prices have not increased at the same pace. That isn’t to say prices haven’t risen at all. We’ve seen prices increase incredibly just between the spring and now. Prices are still not up to what they used to be. THANKFULLY for those first time home buyers out there. Some home owners have chosen to hold off listing their properties until prices come up a little further. Needless to say the confidence in the market has come back a long way. Are we in the clear completely? I would have to say no. We cannot always completely predict what is going to happen in the future. If things continue like they have been I foresee prices to increase at a steady pace well into next summer. As these prices increase more people will list their homes for sale. There will be more stock on the market for buyers to choose from. Then the market will correct itself. Do I see prices increasing to what they were in 2006? Eventually, I do. How soon, that I am not sure. Whatever happens in the market it is up to you, the consumer, and me, your agent, to ensure you buy within your means. You want to feel secure that you will not lose your home if interest rates go up. Make sure you have some equity in your home. Be smart, just because the bank tells you that you can put as little as 5% down...do you really want to??
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Deanna Tall
Prudential