Newsletter

Notable Price Drops, New Listings Jump Dramatically in January

With the first month of the year behind us, I want to point out something interesting that typically happens during the month of January. I call it a belated Christmas present to home buyers. I have noticed that home sellers tend to drop their asking price at this time of year and current market data appear to support this. As you scan the sample benchmark price comparisons below, you can see some higher than usual price declines from the previous months. Where we have been seeing one-month price declines typically around 1.0 per cent, there are several decreases around 2.0 per cent this past month. And in some particularly notable cases the one-month decline is over 3.0 per cent. Take for example the one-month price decrease of 3.4 for condominiums in Burnaby East or the 2.6 per cent decrease for townhouse in Ladner. Of course, we have been tracking a trend of month-over-month decreases in all residential properties since the middle of last summer when several financial constraints for buyers came into effect, but I suspect the post-Christmas effect has also contributed to some of these exceptional price drops during January. I highly recommend that anyone eager to make a deal with a good purchase price at this time of year take a close look at the benchmarks across all property types listed below.

COMBINED BENCHMARKS

The combined benchmark for all property types in Metro Vancouver at the end of January 2019 was $1,019,600, a decrease of 4.5 per cent from one year earlier, and a 1.2 per cent decrease from the preceding month. In the Fraser Valley the combined benchmark for all property types at the end of January 2019 was $821,100, a decrease of 0.8 per cent from one year earlier and 1.6 per cent decrease from the previous month.

METRO VANCOUVER

Big increase in new property listings

In Metro Vancouver new property listings increased dramatically during January, another excellent reason to look consider a home purchase at this time. There were over 10,000 residential properties on the market at the end of last month. The new listings this past January were an extraordinary 244.6 per cent higher than listings in the preceding month.

Detached Homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of January was $1,453,400, a decrease of 1.7 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3.049,700 and the Sunshine Coast at $600,000. (Note I include the Sunshine Coast region only as a factor in the average, but I 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 $1,454,500, a decrease of 2.1 per cent from the previous month; North Vancouver at $1,512,200, a decrease of 1.9 per cent from the preceding month; and Burnaby South at $1,533,700, a decrease of 2.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East at $1,428,700, a decrease of 1.3 per cent from the preceding month; Burnaby North at $1,415,300, a decrease of 2.3 per cent from the previous month; and Coquitlam at $1,195,000, a decrease of 1.5 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in Metro Vancouver at the end of January was $800,600, a decrease of 1.1 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,216,600 and Maple Ridge at $538,700. The three municipalities closest to the benchmark of the higher side of the average were: Richmond at $808,200, a decrease of 1.4 per cent from the preceding month; Vancouver East at $848,200, a decrease of 0.2 per cent from the preceding month; and North Vancouver at $979,900, a decrease of 1.4 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South at $792,800, an increase of 0.3 per cent from the preceding month; Ladner at $740,500, a decrease of 2.6 per cent from the preceding month; and Tsawwassen $732,200, a decrease of 2.2 per cent from the preceding month. (Note: I have not included Whistler in this comparison as it is too far out for my clients)

Condominiums

The benchmark price for a condominium in Metro Vancouver at the end of January was $658,600, a decrease of 0.8 per cent from the preceding month. The extremities of this average were West Vancouver at $1,108,800 and Maple Ridge at $359,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $687,900, an increase of 0.3 per cent from the preceding month; Burnaby East at $743,900, a 3.4 per cent decrease from the preceding month; and Vancouver West (not West Vancouver) at $783,400, no change from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Richmond at $657,500, a decrease of 1.6 per cent from the preceding month; Port Moody at $629,400, an increase of 0.3 per cent from the preceding month; and Burnaby North at $606,400, a decrease of 2.0 per cent from the preceding month.

FRASER VALLEY

Even bigger Increase in new listings

New listings in the Fraser Valley in January made an even bigger jump than in Metro Vancouver. Fraser Valley new listings hit a 266.7 per cent increase over new listings in the preceding month. This brought the total Fraser Valley residential listings to nearly 6,000, making it an ideal time for buyers to look at the market and take advantage of the current month-over-month price drops. Keep in mind that newly listed properties in the Fraser Valley typically do not stay on the market for a long time. During this past January, single family homes remained on the market for an average of 55 days. Townhouses averaged 44 days and condominiums 45 days. It’s also notable that last month, for the first time, condominiums outsold detached homes in the Valley. The Fraser Valley remains a highly desirable area for young families and singles making their first home purchase. I highly recommend taking a look for a good deal at this time.

Detached Homes

The benchmark price for a single-family detached home in the Fraser Valley at the end of January was $954,100, a decrease of 1.2 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $1,351,300 and Mission at $662,700. The three municipalities closest to the benchmark on the higher side of the average were: North Surrey at $956,400 a decrease of 1.8 per cent from the preceding month; Cloverdale at $978,700, a decrease of 0.4 per cent from the preceding month; and Langley at $980,300, a decrease of 2.3 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: North Delta at $879,600, a decrease of 0.9 per cent from the preceding month; Abbotsford at $777,900, a decrease of 1.9 per cent from the preceding month; and Mission at $662,700, an increase of 1.7 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of January was $522,100, a decrease of 1.9 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $669,000 and Abbotsford at $377,100. The three municipalities closest to the benchmark on the higher side of the average were: Cloverdale at $532,400, a decrease of 3.3 per cent from the preceding month; North Surrey at $569,200, a decrease of 1.5 per cent from the preceding month; and Surrey at $569,900, a decrease 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 $485,000, a decrease of 2.0 per cent from the preceding month; Mission at $451,500, a decrease of 1.0 per cent; and Abbotsford at $377,100, a decrease of 1.6 per cent from the preceding month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of January was $409,000, a decrease of 2.2 per cent from the preceding month. The extremities of this average were South Surrey/White Rock at $481,000 and Abbotsford at $307,000. The three municipalities closest to the benchmark on the higher side of the average were: Surrey at $417,900, a decrease of 2.4 per cent from the preceding month; Cloverdale at $454,400, a decrease of 2.9 per cent from the preceding month; and South Surrey/White Rock at $481,000, 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: Langley at $408,800, a decrease of 1.0 per cent from the preceding month; North Surry at $400,800, a decrease of 2.1 per cent from the preceding month; and North Delta at $391,000, a decrease of 2.2 per cent from the preceding month.

I can help

Please feel free to call me if you need help with any decision making, or if you just want to chat about market conditions in general. If you need specific information on a particular property or neighbourhood, I am more than happy to do an analysis of the area of you. I also have professional experience in banking and finance and will gladly guide you through your mortgage requirements.

Thanks for reading!

Sibo Zhang, REALTOR®

Your Market Update for July 2018

With the Bank of Canada’s recent announcement of an interest rate rise of 0.25 per cent, we are already seeing some commercial banks raise their prime mortgage rates. This is not a surprise and is in fact the fourth such interest rate increase by the Bank of Canada in the last 12 months. For anyone with a variable rate mortgage, their monthly payments will increase accordingly. For those who have not yet negotiated a mortgage and were hoping to do so soon, the rate will be slightly higher. But the effect of these rate increases is not all negative.

METRO VANCOUVER

I reported last month, various factors including higher interest rates and stricter mortgage requirements appear to be dampening demand for home sales in Metro Vancouver, and the latest figures show a decline in sales activities is continuing. The upside is that for prospective home buyers, the inventory of available homes at the end of June was at a three-year high. At the end of June, the total number of homes listed for sale in Metro Vancouver was 11,947, of which over 5,000 were listed in June alone. Yet, sales at the end of last month were close to 30 per cent below the ten-year average. So, I am encouraging anyone who is seriously looking for a home to take advantage of the big selection on the market now. With the reduced demand, you are less likely to get into a bidding war for a property you want. In fact, the overall Benchmark price of $1.093,600 for a residential property in Metro Vancouver at the end of June remained unchanged from the previous month. Anyone who has been watching prices escalate for several years will recognize the significance of the current price stability. It is a buyer’s market currently. Below I have selected areas for each of property type which are closest to the Metro benchmark on both the higher and lower sides of this average.

Detached Properties

The benchmark price for a detached home in Metro Vancouver at the end of June was $1,598,200, a decrease of 0.6 per cent from the preceding May. This benchmark average was made of benchmark prices between the extremities of the Sunshine Coast at $628,000 and Vancouver West at $3,392,500. (Note this is not West Vancouver which was at $2,944,900.) I have selected three areas which are closest on both sides for the Metro benchmark. On the higher side of the benchmark were: Richmond at $1,648,600, a decrease of 1.0 per cent from the preceding month; North Vancouver at $1,683,680, a decrease of 1.5 per cent from the preceding month; and Burnaby South at $1,712,400, an increase of 2.5 per cent from the preceding month. Closest to the Metro Benchmark on the lower side of the average were: Port Moody at $1,551,900, an increase of 1.5 per cent from the preceding May; Vancouver East at $1,541,400, a decrease of 0.1 per cent from the preceding May; and Burnaby North at $1,538,900, a decrease of 2.3 per cent from the preceding month.

Townhouses

The benchmark price for a townhouse in Metro Vancouver at the end of June was $859,800, which was unchanged from the preceding month. This benchmark average was made of benchmark prices between the extremities of Maple Ridge at $574,300 and West Vancouver at $1,303,600. I have selected three areas which are closest on both sides for the Metro benchmark. (I have excluded from this selection the areas of Squamish and Whistler which are too far out for most of my clients.) On the higher side of the benchmark were: Vancouver East at $923,400, a decrease of 0.3 per cent from the preceding May; North Vancouver at $1,049,900, an increase of 1.4 per cent from the preceding May; and Vancouver West at $1,303,600, a decrease of 0.1 per cent from the preceding May. Closest to the Metro benchmark on the lower side of the average were: Burnaby South at $856,400, an increase of 1.8 per cent from the preceding May; Richmond at $854,800, an increase of 1.0 per cent from the preceding May; and Ladner at $778,000, a decrease of 1.2 per cent from the preceding May.

Condominiums

The benchmark price for a condominium in Metro Vancouver at the end of June was $704,200, an increase of 0.4 per cent from the preceding May. This benchmark average was made of benchmark prices between the extremities of Pitt Meadows at $480,300 and West Vancouver at $1,286,500. I have selected three areas which are closest on both sides for the Metro benchmark. On the higher side of the average were: Burnaby South at $737,000 and increase of 1.1 per cent from the preceding May; Vancouver West at $842,600, a decrease of 0.3 per cent from the preceding May; and West Vancouver at $1,286,500, an increase of 0.5 per cent from the preceding May. Closest to the Metro benchmark on the lower side of the average were: Burnaby East at $701,400, a decrease of 2.0 per cent from the preceding May; Port Moody at $699,200, an increase of 0.9 per cent from the preceding May; and Richmond at $683,800, an increase of 2.0 per cent from the preceding May.

FRASER VALLEY

As it the case in Metro Vancouver, the inventory of residential properties in the Fraser Valley continued to increase. The total number of listings across all property types rose to 7,141 at the end of June, an increase of 6 per cent from the preceding May, providing an excellent selection for prospective home buyers this summer. If you haven’t yet found the residence you’ve been looking for in the Valley, then I strongly recommend you look at some newly listed properties this month. There were over 3,100 new listings in June alone. Prices are holding steady at present with a slight decrease in some cases – the average across all property types at the end of June decreased 4.9 per cent from the preceding May — so if you eager to buy this appears to be one a favourable time for buyers. Sales activity is still brisk, however, and properties can sell quite soon after they are listed. Last month the average time for a single family detached home was on the market in the Fraser Valley was 26 days; townhouses sold on average after 19 days, and condominiums after 21 days. As has been the case for some time, townhouses and condominiums make up just over 50 per cent of all sales, but detached properties are still a favourite for many families who want to enjoy Valley life with their children. Below is my selection this month for the three property types with benchmark prices at then end June in areas where I think you will find some excellent value.

Detached Homes

The benchmark price for a detached property in the Fraser Valley at the end June was $1, 018,900, a 0.2 per cent decrease from the preceding May. The extremities of this average were $1,073,700 in Langley and $692,300 in Mission. Here is my selection for the three closest benchmark prices on both the higher and lower sides of this Valley benchmark. On the higher side of the average were: Cloverdale at $1,036,600, a 1.1 per cent decrease from the preceding May; Surrey at $1,53,600, a 0.3 per cent increase from the preceding May; and Langley at $1,73,700, a 0.4 per cent increase from the preceding May. Closest to Fraser Valley benchmark on the lower side of the average were: North Surrey at $998,900, a 0.5 per cent decrease from the preceding May; North Delta at $957,800, a 0.1 per cent decrease from the preceding May; and $840,700, a 0.5 per cent increase from the preceding May.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of June was $558,000, an increase of 0.4 per cent from the preceding May. The extremities of this average were $680,800 in South Surrey/White Rock and $409,400 in Abbotsford. Here is my selection of the three closest benchmark prices on both the higher and lower sides of this Valley benchmark. On the higher side of the average were: North Surrey at $589,400, a decrease of 0.7 per cent from the preceding May; Surrey at $598,000, an increase of 0.9 per cent from the preceding May; and Cloverdale at $618,300, an increase of 0.2 per cent from the preceding May. Closest to the Valley benchmark on the lower side of the average were: Langley at $527,900, a decrease of 0.2 per cent from the preceding May; Mission at $441,800, a decrease of 1.8 per cent from the preceding May; and Abbotsford at $409,400, an increase of 3.5 per cent from the preceding May.

Condominiums

The benchmark price for condominium in the Fraser Valley at the end of June was $453,500, an increase of 0.1 per cent from the preceding May. The extremities of this average were $516,000 in South Surrey/White Rock and $356,800 in Abbotsford. Here is my selection of the three closest benchmark prices on both the higher and lower sides of this Valley benchmark. On the higher side of the average were: Surrey at $464,300, a decrease of 0.5 per cent from the preceding May; Cloverdale at $513,000, an increase of 0.6 per cent from the preceding May; and South Surrey/White Rock at $516,000, a decrease of 1.4 per cent from the preceding May. Closest to the Valley benchmark on the lower side of the average were: Langley at $448,500, a decrease of 1.2 per cent from the preceding May; North Surrey at $443,800, an increase of 1.0 per cent from the preceding May; and North Delta at $433,200, a decrease of 0.1 per cent.

The summer weather is now making it enjoyable to take a drive around the community where you would like to locate your new residence. I encourage you to view some of the open houses that you see and compare their features to what find properties priced close to the benchmark prices I have mentioned above. Remember that a benchmark price is an average based on home with similar characteristics, so be sure to note any features that you really want in your new home. I am always happy to provide you with more information in any property type in whatever area you are interested in, so please feel free to give me a call, whether you are just curious about the market or are at the stage of planning on buying or listing.

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Your Market Update for June 2018 – Greater Vancouver and the Fraser Valley

METRO VANCOUVER

It appears that government measures to cool the Vancouver housing market are having some effect. You have no doubt read about the foreign home buyers tax – which incidentally is being challenged in court case launched in British Columbia right now – as well a proposed surtax on the highest value homes, and other legislated taxes on second homes and vacant properties. I have covered with some detail these issues in previous newsletters and blogs, so I won’t go back into them now except to say if you would like to discuss them, I am happy to have you give me a call. The situation in the greater Vancouver housing market that I want to emphasize now is that the current demand for housing has dropped considerably this month, and at the same the supply of properties listed for sale has increased significantly, so in short, it’s a great time to go shopping for a home. Using the numbers at the end of May, the 6,375 properties newly listed in Metro Vancouver is close to a 10 per cent increase over the April listings, which brought the total supply of available residences in Metro Vancouver to 11,292 and more than the total inventory in April this year. By itself, this would not be as significant as it is with the current decline in demand. Together these two factors make for better buying conditions that we have seen for some time in this market, with the selection of homes now at its highest level in the past two years.

Last month’s sales across all property types continue to show condominiums and townhouses make up more than 70 per cent of purchases, specifically: 41.7 per cent for condominiums; 30.8 per cent for townhouses; and 14.7 per cent for detached homes. The benchmark price for all residential properties in Metro Vancouver at the end of May was $1,094,000, a slight increase of 0.2 per cent over April, but it’s worth noting that it was 11.5 per cent higher than this time year ago. While the Metro Vancouver market will remain robust because of the city is considered to be a highly desirable place to live, prices will in probably continue to rise overall. That’s why a Vancouver home is an excellent investment for the long term, and why the current decline in demand can work to your advantage as a buyer. From the seller’s point of view, a competitive price will see your property sold sooner, and the current increase in overall selection will be attracting more shoppers at this time.

Here is a breakdown of properties types and their benchmark related prices for my selection of areas where you stand a good chance of finding an appealing residential property in Metro Vancouver this month.

Detached Homes

The benchmark price for single family detached homes in Metro Vancouver at the end of May was $1,608,000, an increase of 0.2 per cent over one month. Notable given the government measures mentioned above, sales of detached properties in May showed a 40.2 per cent decrease from a year earlier. The current benchmark price is an average calculated with price extremities of 3,430,000 in Vancouver West and $1,529,200 in Port Moody. The areas closest to the benchmark price on its higher side were: Richmond with a benchmark price at $1,665,100, a decrease from the previous month of 1.2 per cent; Burnaby South with a benchmark price at $1,671,100, a decrease of 0.3 per cent from the previous month; and West Vancouver with a Benchmark price of $3,020,100, a decrease of 1.1 per cent from the previous month. Closest to Metro Benchmark on the lower side were: North Burnaby with a benchmark of $1,575,100, a decrease of 1.3 per cent from the precious month; Vancouver East with a benchmark of $1,543,600, no change from the previous month; and Port Moody with a Benchmark of $1,529,200, an increase of 1.3 per cent over the previous month. It is noteworthy that that all but one of the monthly changes decreases over the benchmark in May this year.

Townhouses

The benchmark price for a townhouse in Metro Vancouver at the end of May was $859,500, an increase of 0.6 per cent over the previous month. This average was made up of prices ranging from a high of $1,304,500 in Vancouver West to a low of $580,500 in Pitt Meadows. I have excluded the areas of Whistler and Squamish which are too far out for my clients. Here again is my selection of the areas closest to the Metro Benchmark on it higher and lower sides. The closest areas on the higher side were: Vancouver East with a benchmark of $925,800, a decrease of 0.8 per cent from the previous month; North Vancouver with a benchmark of $1.035,500, an increase of 0.4 per cent over the previous month; and Vancouver West with a benchmark of $1,304,800, an increase of 0.2 per cent over the previous month. On the lower side, the benchmark for Richmond was $846,300, an increase of 0.9 per cent over the previous month; Burnaby South with a benchmark of $841,000, an increase of 0.7 per cent over the previous month; and Tsawwassen with a benchmark of $507,500, a decrease of 0.7 per cent from the previous month.

Condominiums

The benchmark price for condominium in Metro Vancouver at the end of May was $701,700, an increase of 0.1 per cent over the previous month. This average was made up of prices ranging from a high of $!,280,600 in West Vancouver to a low of $325,500 in Maple Ridge. Here is my selection of the areas closest to the Metro benchmark on the higher and lower sides. On the higher side were: Burnaby East at $715,900, a decrease of 2.1 per cent from the previous month; Burnaby South with a benchmark of 4729,000, an increase of 1.8 per cent over the previous month; and Vancouver West with benchmark of $846,400, an increase of 0.4 per cent over the previous month. On the lower side, the benchmark in Port Moody was 693,000, an increase of 0.1 per cent; Richmond had benchmark of $670,700, a decrease of 2.0 per cent; and Burnaby North had a benchmark of $650,200, an increase of 1.8 per cent.

FRASER VALLEY

The Fraser Valley continues to show strong sales, and once again townhouses and condominiums represented over 50 per cent of all sales in the month of May. Of the Valley’s 1,728 sales across all property types, townhouse sales reached 417, and condominiums reached 516. Buyers now have the highest selection to choose from since 2015, with 3,965 new listings bringing the total inventory to 6,736 at the end of May. The Valley sees a lot a first time home buyers, many singles looking for a condominium or a young couple wanting a townhouse to as their first home. It is a market where listed properties do not stay on the market very long, so I encourage prospective home owners to take a look at the available properties without delay. While the current inventory of homes across all property types is high, the summer will bring home seekers out with the nice weather. The combined Fraser Valley benchmark price for all property types at the end of May was 41,006200, a one month price increase of 0.5 per cent. Below I provide you with a breakdown of benchmark prices for each type of property in the selected areas where averages are closest on the higher and lower sides.

Detached Homes

The benchmark price for a single family detached home in the Fraser Valley at the end of May was $1,020800, an increase of 1.2 per cent over the previous month. This average price was made up of prices ranging from a high of $1,487,00 in South Surrey/White Rock to a low of $691,200 in Mission. Here is my selection of areas closest to the Valley benchmark on its higher and lower sides. On the higher side were: Cloverdale with a benchmark price of $1.047,700, an increase of 0.1 per cent over the previous month; Surrey with a benchmark price of $1,051,000, an increase of 1.0 per cent over the previous month; and Langley with a benchmark price of $1,069,300, an increase of 2.1 per cent over the previous month. On the lower side were: North Surrey with a benchmark of $1,003,500, an increase of 1.6 per cent over the previous month; North Delta with a benchmark of $958,500, an increase of 1.5 per cent over the previous month; and Abbotsford with a benchmark of $836,600, an increase of 14 per cent over the previous month.

Townhouses

The benchmark price for a townhouse in the Fraser Valley at the end of May was $555,500, an increase of 1.0 per cent over the previous month. This average was made up of prices ranging from a high of $690,700 in South Surrey/White Rock to a low of $395,400 in Abbotsford. Areas closest to the benchmark on the higher side of the Valley benchmark were: Surrey at $592,600, an increase of 1.3 per cent over the previous month; North Surrey at $593,500, an increase of 1.6 per cent over the previous month; and North Delta at $610,000, an increase of 0.9 per cent over the previous month. On the lower side of the Valley benchmark, the closest benchmarks were: Langley at $529,000 an increase of 0.9 per cent; Mission at $449,900, an increase of 0.1 per cent; and Abbotsford at $395,400, an increase of 1.4 per cent over the previous month.

Condominiums

The benchmark price for a condominium in the Fraser Valley at the end of May was $452,900, an increase of 1.2 per cent over the previous month. This average was made up of prices ranging from a high of $523,300 in South Surrey/White Rock to a low of $353,400 in Mission. Areas closest to the higher side of the Valley benchmark were: Langley at $454,000, an increase of 0,2 per cent over the previous month; Surrey at $466,500, an increase of 2.3 per cent over the previous month; and South Surrey/White Rock at $523,300, a decrease of 0.3 per cent from the previous month. On the lower side of the Valley benchmark, the closest benchmarks were: North Surrey at $439,500, an increase of 1.6 per cent over the previous month; North Delta at $433,400, an increase of 2.1 per cent over the previous month; and Mission at $364,000, an increase of 5.1 per cent over the preceding month.

I hope the above survey of prices in the areas of Metro Vancouver and the Fraser Valley serves as a good guide whether you are thinking of buying or selling a property at this time. If you would like to learn more about prices in any other areas of Greater Vancouver, I will be happy to help you find a property that fits your mortgage range. Please feel free to give me a call at 604-779-7992.

Thanks for reading!

Sibo Zhang, REALTOR®

Your Market Update for May 2018 – Greater Vancouver and the Fraser Valley

 

Home buyers in the Metro Vancouver area this month have more to be happy about than just the sunnier weather that is showing up more often!

There is also a brighter picture for home selection than has been the case for some time. Based on figures at the end of April, the number of new listings increased by nearly 31 per cent compared to the preceding month. That’s a big jump. In actual numbers it was 5,820 new listings across all property types, bringing the total inventory for detached homes, townhouses, and condominiums in Metro Vancouver to 9,822, so there is no doubt going to be considerable interest in open houses this month. If you are among those prospective buyers who have pre-qualified for a mortgage, then you have another advantage going for you. Your mortgage qualification would have made you aware of the more stringent requirements set by the federal government, which means that you will likely have fewer buyers competing for a property, and with the increased inventory this can help keep the price down. This was part of the government of the government strategy to slow the rate of price increases, and it appears to be working right now. However, there is still plenty of activity in the market to keep moving prices upward, although perhaps at a slower rate. Overall, Metro Vancouver prices across all property types inched up 0.7 per cent from the preceding month. Most of the sales that occurred in April were for condominiums which was close to 50 per cent of all sales activity. Townhouse sales took slightly over 36 per cent of the activity, and detached residences were just under 15 per cent. The Benchmark price for all property types at the end of April was $1,092,000

It is worth comparing the Benchmark price for detached properties in Metro Vancouver at $1,605,800 at the same time. With approximately $½-million difference from the overall benchmark, we can more clearly understand why many home buyers have opted for other types of residential properties. There’s actually been a slight decline of 0.2 per cent in detached properties from March to April this year. In fact, since April last year, there’s been a significant decrease of 33 per cent in detached property sales. Attached properties, on the other hand, showed a relatively larger month-over-month increase in the respective Benchmarks. Metro Vancouver condominiums had a Benchmark price of $701,000 at the end of April, which was a 1.1 per cent increase from March. Benchmark price of a townhouse was $854,200, a 2.3 per cent increase for the same period. Below is a survey of average prices for each property type in areas with the upper and lower sides are closest to the overall Benchmark. As usual, where the extremities include the Sunshine Coast, Squamish, or Whistler, I note the area for its high or low end of the average but do not survey the property types in these areas as they are too far from the Metro Vancouver area desired by my clients.

Single Detached Homes

The extremities of the Metro Vancouver average Benchmark for single detached homes were Vancouver West at $3,054,000 and the Sunshine Coast at $614,600. Municipalities with average prices closest to the Metro Benchmark on the higher side were South Burnaby at $1,675,800, a month’s increase of 0.1 per cent; North Vancouver at $1703,400, a month’s decrease of 1.2 per cent; and Richmond at $1,684,500, a month’s decrease of 1.4 per cent. Closest on the lower side of the Metro Benchmark were North Burnaby at $1,595,800, a month’s increase of 3.3 per cent; Vancouver East at $1,544,100, a month’s decrease of 1.3 per cent; and Port Moody at $1,510,200, a month’s increase of 1.7 per cent.

Townhouses

The Metro Vancouver Benchmark price for townhouses at the end of April 2018 was $854,200. The extremities of this average were West Vancouver at $1,302,200 and Maple Ridge at $585,200. Municipalities with average prices closest to the Metro Benchmark on the higher side were Vancouver East at $933,500, a month’s increase of 2,8 per cent; North Vancouver at $1,030,900, a month’s increase of 2.5 per cent; and Vancouver West at $1,302,200, a month’s increase of 2.5 per cent. Closest on the lower side of the Metro Benchmark were Richmond at $839,00, a month’s increase of 1.0 per cent; South Burnaby at $834,900, a month’s increase of 0.9 per cent; and Ladner at $786,100, a month’s increase of 0.8 per cent.

Condominiums

The Metro Vancouver Benchmark price for condominiums at the end of April 2018 was $701,000. The extremities of this average were West Vancouver at $1,295,900 and Maple Ridge at $329,000. Municipalities with average prices closest to the Metro Benchmark on the higher side were South Burnaby at $715,800, a month’s decrease of 1.5 per cent; East Burnaby at $731,500, a month’s increase of 0.5 per cent; and Vancouver West at $841,700, a month’s decrease of 0.4 per cent. Closest on the lower side of the Metro Benchmark were Port Moody at $692,300, a month’s increase of 2.5 per cent; Richmond at $684,100, a month’s increase of 3.7 per cent; and North Vancouver at $611,900, a month’s increase of 1.8 per cent.

Of general interest this month I want to draw you attention to those average prices that have declined over one month. You will note that most of the decreases are for the property type of Single Family Detached. While it is only a snapshot in time, it appears to confirm the overall picture for the Metro Vancouver Market sales activity, which is a move away from Single Family Detached to the other two property types. In condominium and townhouse categories, you see several month-over-month price increases that stand out as significantly higher than others. You may find these monthly changes a helpful key to watching the market both for purposes of obtaining a good current price, and for what could be a good investment property as well. Please call me if you would like any further information on any property type in a specific area. I am always happy to help you your individual needs.

FRASER VALLEY

The Fraser Valley, like the Greater Vancouver region, also saw an increase in housing inventory at the end of April. New property listings across all types increased by 3,429, nearly 20 pre cent more than new listings in March, bringing the total Valley inventory to 5,667. making for a great selection this Spring. However, even with a substantial increase in available residential properties, prices are continuing to rise each month. The combined Benchmark price for all residential property types across the lower mainland at the end of April was $1000,900, an increase of 0.9 per cent from the preceding month. But it’s important to note that this Spring the actual number of sales for the month of April was down close to 25 per cent compared to one year ago. This does not mean that demand is not still high for a Valley property, but it appears that there is some current hesitancy in the market which might be attributable to uncertainty about prices under new mortgage qualifying requirements. Nonetheless, there is still strong demand generally, and sales of townhouses and condominiums continues to dominate the market activity. One again, over 50 per cent of April’s total of 1,708 sales were for townhouses and condos. These two property types sell very quickly, with the average time after listing being 14 days for condominiums and 16 days for townhouses, compared to 26 days for a single detached home. The price point between single detached homes and the other types appears to be the basis for this difference in Fraser Valley sales activity. The Benchmark price for a single detached property at the end of April was $1,009,200. With the Benchmarks for townhouses and condos still below the $1-million mark, the Valley continues to be a favorite location for first time buyers, whether singles or young families. Below is a breakdown for this market segment with properties close to both sides of the average Benchmark in Fraser Valley areas.

Townhouses

The Benchmark price for a Fraser Valley townhouse at the end of April was $691,700. The high and low extremities for the average were in South Surrey/White Rock at $525,100 and Abbotsford at $346,600. Closest to the Benchmark on the higher side were North Surrey at $577,000, a month’s increase of 0.6 per cent; Surrey at $584,900, a month’s increase of 1.2 per cent; and North Delta at $604,800, a month’s increase of 2.3 per cent. On the lower side of the Benchmark were Langley at $524,400, a month’s increase of 1.8 per cent; Mission at $449,300, a month’s increase of 0.6 per cent; and Abbotsford at $390,200, a month’s increase of 1.9 per cent.

Condominiums

The Benchmark price for a Fraser Valley condominium at the end of April was $447,500. The high and low extremities of this average were South Surrey/White Rock at $525,100 and Mission at $346,300. Closest to the Benchmark on the higher side were Langley at $453,000, a month’s increase of 1.9 per cent; Surrey at $456,200, a month’s increase of 0.9 per cent; and Cloverdale at $509,000, a month’s increase of 0.4 per cent. On the lower side of the Benchmark were North Surrey at $432,600, a month’s increase of 1.8 per cent; North Delta at $424,500, a month’s decrease of 0.4 per cent; and Abbotsford at $346,600, a month’s increase of 3.0 per cent.

Thanks for reading!

Sibo Zhang, REALTOR®

Your March Market Update for Metro Vancouver and the Fraser Valley

If you happened to read the news story in the Globe and Mail at the beginning of the month, the headline surely intrigued you: “Vancouver housing sales fall 9 % in February.” The story behind the decline is really the more important consideration for prospective home buyers. As a statistician, I always want my clients to understand the reason when a number is cited.

First, the February sales decline is for all property types across Metro Vancouver, so we will have to look more closely at the different categories. Based on ten-year sales average, February’s sales for all property types were down 14.4 per cent; detached sales declined 39.4 per cent; townhouse declined 6.8 per cent, but condominium sales rose 5.5 per cent above the 10-year average. Second, the 9 per cent decrease is a comparison with February sales in 2017. It’s a significant percentage, but the actual number of sales for the respective months were 2,207 in 2018 and 2,424 in 2017, so in practical terms not really a huge difference. And the number of sales in February this year was a monthly increase of 21.4 per cent over January, so it’s important to recognize that the market is still very active. The composite benchmark price for all residential properties in Metro Vancouver at the end of February was $1,071.800, a 16.9 per cent increase year-over-year and a 1.4 per cent increase since January this year. It will be important to watch these two price levels in coming months.

What the newspaper story was really about what may be the beginning of fewer sales each month following the provincial budget announcements in February that impact out-of-province buyers. The BC government has targeted speculative buyers with an additional tax as well as increasing and expanding the foreign buyers tax beyond Metro Vancouver. I will talk more about these tax measures in my next Blog, but for now I will focus on the market place prices for prospective local home buyers and sellers.

Detached Properties

The benchmark price for a single detached property in Greater Vancouver at the end of February was $1,602,000, an 8.2 per cent increase from the February 2017, and a 1.9 per cent increase from January this year. The extremities of this average range from a high in Vancouver West (higher than West Vancouver, and excluding Whistler) at $3,500,600 to a low in low in Maple Ridge at $847,700. That’s obviously quite a large spread, so I’ve selected three areas on each side of the Benchmark where you can find properties closest to the Metro Benchmark at the end of February. On the higher side, the Burnaby South Benchmark price was $1,682,600, an increase of 0.9 per cent over the previous month. North Vancouver’s Benchmark was $1686,800, an increase of 1.0 per cent over the previous month; and Richmond’s Benchmark was $1,697,900, an increase of 0.4 per cent over the previous month. On the lower side, the Vancouver East Benchmark was $1,560,400, a decrease of 0,2 per cent from the previous month; the Burnaby North Benchmark was $1,532,700, a decrease of 2.2 per cent from the previous month; and Port Moody’s Benchmark was $1,483,700, a decrease of 0.7 per cent from the preceding month.

Townhouses

The Benchmark price for a townhouse in Metro Vancouver at the end of February was $819,200. This average was made up of prices ranging from a high of $1,250,100 in Vancouver West to a low of $551,400 in Maple Ridge. I have again selected three areas on each side of the Benchmark which are closest to the Benchmark at the end of February. On the higher side, almost identical to the Metro Benchmark was the Richmond Benchmark at $819,500, a decrease of 0.4 per cent from the previous month. The Benchmark for Vancouver East was $868,900, an increase of 1.3 per cent from the previous month; and the North Vancouver Benchmark at $998,400, an increase of 0.7 per cent from the previous month. On the lower side, the Benchmark for Burnaby South was $807,600, an increase of 2.7 per cent over the previous month. The Tsawwassen Benchmark was $756,000, a decrease of 0.9 per cent from the previous month; and the Ladner Benchmark at $783,200, an increase of 0.9 per cent from the previous month. In this breakdown, I have excluded Whistler as I normally do for areas farther out than my clients wish to look.

Condominiums

The Metro Vancouver Benchmark price for condominiums at the end of February was $682,800. The extremities of this average ranged from a high in West Vancouver at $1,237,100 to a low in Maple Ridge of $307,800. Here is my selection of three areas closest on both sides of the Benchmark. On the higher side, the Benchmark for Burnaby East was $706,700, an increase of 2.6 per cent over the previous month. The Benchmark for Burnaby South was $710,100, an increase of 1.8 per cent over the preceding month; and Vancouver West’s Benchmark at $835,800 was an increase of 2.9 per cent over the previous month. On the lower side, the Benchmark for Port Moody was $668,300, an increase of 4.0 per cent over the previous month. Richmond’s Benchmark at $657,800 was an increase of 1.2 per cent over the previous month; and the Burnaby North Benchmark at $642,500 was an increase of 3.9 per cent over the previous month. These selections are made to guide my clients who are looking to purchase, or sell, one of these property types within the Metro Vancouver region based on the mid-range prices of comparable properties.

There are of course many properties in areas outside the mid-price range I have focused on in my selections above. If you would like to learn more about prices in any other areas of Greater Vancouver, I will be happy to help you find a property that fits your mortgage range. Please feel free to give me a call.

FRASER VALLEY

There was also a decrease – a small one — in the year-over-year number of February sales in the Fraser Valley, a mere 0.8 per cent decline. However, the Valley continues as a high demand area, noted by February’s 14.5 per cent increase over January 2018 sales activity. As has been the case for many months, attached properties – townhouses and condominiums – together represented more than half of all the transactions. Fraser Valley home seekers can again be buoyed with the fact that inventory in February increased 9.5 per cent over the preceding month, bringing the total supply of properties on the market at the end of February to 4,340.

For anyone thinking about listing their property for sale, it is nonetheless a good time because demand continues to be greater than the 10-year average for this time of year. During the month of February, detached properties took on an average of 38 days to sell, while townhouses sold after an average of 28 days, and condominiums on an average of 13 days. I highly recommend home purchases in the Fraser Valley at this time. Prices on average are still below those of comparable properties in Metro Vancouver. The composite Benchmark price for all property types in the Fraser Valley at the end of February was $795,100. For this reason, it is a favorite starting area for young families and singles often looking in the townhouse and condominium market segment. However, there is excellent value to be found in all housing types, and for families who want to start with a detached property, or perhaps move up to detached home from their existing townhouse, the Valley has very good prices. I will review the Benchmark prices for each property type in the space below and will make some recommendations on which areas you might wish to look for your preferred price range.

Detached Homes

The Benchmark price for a single family detached home in the Fraser Valley was $992,100 at the end of February, an increase of 1.0 per cent over the preceding month, and a 15.7 per cent increase year-over-year. Compared with the Metro Vancouver Benchmark of $1,602,000 for a comparable property, you can see why this is an attractive investment. The extremities of this average are not as far apart as Metro Vancouver areas, with South Surrey/White Rock at the high end at $1,482,800 and Mission at the low end at $663,500. Closest to the Valley Benchmark on the higher side at the end of February were: Cloverdale at $1,036,600, a 2.2 per cent increase over January; Langley at $1,028,200, a 0,4 per cent increase over January; and Surrey at $1,019,500, an increase of 0.6 per cent over January. Closest to the Valley Benchmark on the lower side were: North Surrey at $972,100, an increase of 0.6 per cent over January; North Delta at $944,800, an increase of 0.4 per cent over January; and Abbotsford at $803,300, an increase of 2.2 per cent over January.

Townhouses

The Benchmark price for townhouses in the Fraser Valley was $531,000 at the end of February. This average is from the extremities of $656,000 in South Surrey/White Rock and $371,600 in Abbotsford. Closest on the higher side of the Benchmark were: North Surrey at $560,200, an increase of 3.1 per cent over January; Surrey at $569,000, an increase of 2.1 per cent over January; and North Delta at $581,000, an increase of 0.4 per cent over January. Closest to the Benchmark on the lower side were: Langley at $508,500, an increase of 1.9 per cent over January; Abbotsford at $371,600 and increase of 2.7 per cent over January; and Mission at $433,400, an increase of 0.3 per cent over January.

Condominiums

The Benchmark price for condominiums in the Fraser Valley was $422,300 at the end of February. The extremities for this average were $519,00 in South Surrey White Rock and $315,400 in Mission. Closest to this Benchmark on the higher side were: Langley at $424,300, an increase of 4.3 per cent over January; Surrey at $427,400, an increase of 6.3 per cent over January; and Cloverdale at $488,100, an increase of 4.0 per cent over January. Closest on the lower side of the Benchmark price were: North Surrey at $410,400, an increase of 4.8 per cent over January; North Delta at $394,100, an increase of 4.8 per cent over January; and Abbotsford at $315,900, an increase of 5.3 per cent over January.

I selected the above areas to assist you in your search for a home to fit your mortgage capability. Keep in mind that the Benchmark prices are a comparison of comparable properties in their respective categories.

If there is any area that you would like to get more specific information on prices in any area, please feel free to call me. I keep a close eye on new listings and changes in prices, and I am always happy to help in any way I can.

Thanks for reading!

Sibo Zhang, REALTOR®

 

March in Surrey

Let’s hope Spring weather is on its way this month of March. There’s so much to do in Surrey this month, we will be eager to get around. By the end of the month, we can test the old saying: “If March comes in like a lion, it goes out like a lamb.” What this means is that if weather at the beginning of March is like a lion – blustery, cold, maybe snowing – then the end of March will be gentle – calm, warm, sunny. The general idea is that the weather at the end of March is supposed to be the opposite of the beginning. We will have to wait and see, but there are many activities around our city to take our minds off the weather.

Here are events throughout the month to help you plan some activities for the whole family.

Some of the many things to do in Surrey this month of March

On March 1 at the Surrey Art Gallery is an evening show (7:30 to 9:00 pm) by artists Erica Grimm, Tracie Stewart and Sheinagh Anderson entitled “Skin Boats and Ocean Surroundings.” The show deals with problems of climate change and the changing ocean environment. The installation of the artists’ salt water skin boats – designed to resemble human skin – and the accompanying soundscape uses analogies between human bodies and the ocean to create a connection between participants and the ocean.

On March 1 and March 15, youth and young adults (ages 15 to 30) are invited to join the Community Art Planning Team. This group creates different art projects to enliven and brighten neighborhoods through Surrey. The meeting locations are to be determined, and you can get information by phoning 604-591-4194.

On March 4 (2:30 pm to 4:00 pm) at the Surrey Art Gallery, you can explore and enjoy indigenous art from India. There will be a panel of experts to discuss the art and provide insights for visitors to the show.

On March 8 at the Kensington Prairie Recreation Centre (4:30 p.m. to 6:30 p.m.) is hosting the Kinder Café Kindergarten. This event is for parents, but you can bring your children and learn how they can be prepared for kindergarten. You can register your child for the child minding service there as well, so you can concentrate on the lesson. To register call 604-592-2605 and use reference code 4565025.

On March 9, enjoy Family Movie Night at the Fleetwood Community Centre (6:30 p.m. to 8:30 p.m.) You can wear your pyjamas and cover up in your own blanket while you watch a family movie together, complete with popcorn and other treats. You can enjoy this family event for free, but you will need to register for your spot. Phone 604-501-5100.

On March 10 at the Surrey Archives from 11:00 a.m. to 12:30 p.m. local history buffs can enjoy discovering the photos by the legendary Surrey Newsman Stan Mckinnon. Pictures of Surrey residents, businesses and landscapes in the 1950s and 1960s are featured. For registration information phone the Surrey Archives at 604-502-6459.

On March 13 at the Cloverdale Recreation Centre there is Movie afternoon from 1:00 p.m. to 3:00 p.m. This is an afternoon the whole family can enjoy together with classical and other great family movies. Register by phoning 604-501-5100.

On March 17, the Surrey Nature Centre will hold a birding walk from 9:00 a.m. to 11:00 a.m. This nature lover’s event will meet in the Nature Centre’s parking lot and then walk along the forest trails to Green Timbers Lake where they can observe osprey and cormorants fishing for rainbow trout.

On March 18 from 11:00 a.m. to 3:00 p.m. the Surrey Art Gallery will host Family Day. This fun-filled day will include creating your own art with paint, pastels, clay, and chalk. There will also be interactive musical performances from 1:00 p.m. to 2:30 p.m. as well as the Art from Indigenous Communities in India in case you missed it on March 1. This is a free event, but children must be accompanied by an adult.

On March 19, from 6:00 p.m. to 7:00 p.m. the North Surrey Recreation Centre will hold an information session on getting started in lifeguard or aquatic instructor courses. The session will inform you on training process and volunteer opportunities. This is a free event, but participants must be age 10 or older. You can phone for information at 604-501-5100.

On March 21 at the Guildford Recreation Centre from 10:00 a.m. to 2:00 p.m. celebrate the beginning of Spring (first day of Spring is March 20). There will be lots of fun family activities to launch the season of Spring this year.

On March 24 at the Guilford Recreation Centre, the second annual Active Aging Resource Fair takes place from 9:00 a.m. to 3:00 p.m. There will booths to connect with others and to learn about new technologies as well as health, nutrition, travel, and fitness. For more information you can phone: Carissa Bootsma at 604-591-4274.

Have we missed anything? Be sure to leave your comments of fun activities to check out this March in Surrey, BC.

Thanks for reading!

Sibo Zhang, REALTOR®

Your December Real Estate Recap

With Christmas almost here, I know it’s a bustling time that can also be somewhat stressful even as we enjoy festive activities, often in the homes of our friends and relatives. For my clients who are currently in the market to buy a home, this can also be a good season to refresh your spirits from your hard work, and look forward to next Christmas when you are entertaining guests in your new home. It’s a happy season when we can really appreciate the value of home ownership – something that enhances our enjoyment of life and gives us a sense of stability with a longer-term focus for our daily routines.

The Metro Vancouver housing market has given us a gift this season as well. There were over 4,000 newly listed residential properties in the month of November. On top of that, the composite benchmark price for all properties increased a mere 0.4 per cent from October, so there is good reason to actively pursue the home you want at this time. It’s probably wise to think that the modest monthly price increases that have been occurring over recent months will not continue forever. Keep in mind that this past November’s composite benchmark price was 14 per cent higher than one year ago. We don’t have a crystal ball to tell us when the next major surge in demand may suddenly drive prices much higher, but we can be reasonably certain that Vancouver will continue to attract more home buyers, even at the higher end for a single family detached home which is currently at a benchmark in Metro Vancouver of $1,608.000. Prices above the $1-million psychological threshold that I have talked about for several months will eventually begin to move higher more quickly.

For other property types, the November benchmark price for Metro Vancouver townhouses was $805,200; and for condominiums, $648,200. As with detached properties, a similar modest monthly price increase occurred with a 0.3 per cent increase for townhouses, but for condominiums it was a full 1.0 per cent higher than October. I will monitor this differential in the coming months because I see a possible rate of change widening between townhouses and condominiums. Consider that the six-month differences were increases of 8.7 per cent for townhouses and 11.0 per cent for condominiums; and the twelve-month difference was an increase of 17.9 per cent for townhouses and 23.9 per cent for condominiums. There appears to an upward sloping curve developing faster for price increases of condos, which I will keep you informed about in future newsletters. Below is a breakdown of my suggested areas to look for these two property types based on November’s figures.

For townhouses, there are six areas that showed an increased price of less than 0.1 per cent from October. With their respective Benchmark prices in November, these were: Vancouver West at $1,268,200, an increase of 0.3 per cent; North Vancouver at $983,600, an increase of 0.7 per cent; Vancouver East at $861,900, an increase of 0.8 per cent; Richmond at $805,500, an increase of 0.7 per cent; New Westminster at $682,300, an increase of 0.5 per cent; and Maple Ridge at $532,900, and increase of 0.6 per cent.

For condominiums, there are four areas that showed an increased price of less than 0.1 per cent from October. With their respective Benchmark prices in November, these were: Vancouver West at $811,200, an increase of 0.6 per cent; Richmond at $612,900, an increase of 0.5 per cent; Vancouver East at $540,300, an increase of 0.3 per cent; and New Westminster at $493,900, an increase of 0.6 per cent.

Fraser Valley

The Valley remains a popular area for young families and singles buying their first home. The benchmark price for a Single Family Detached home is still under the $1-million mark despite months of speculation that it would surpass this threshold very soon. The November price of $972,700 was only 0.1 per cent higher than October, so like Metro Vancouver, the monthly rate of increase is still low and generally stable at present. The rate of increase for the same property type from one year ago was 13.5 per cent. It’s probably safe to assume that this rate of increase will continue similarly, or even accelerate over the next year. Even continuing at the same rate, it would mean in one year the benchmark price will be over the $1-million mark. For this reason, anyone looking to buy a Single Family Detached Property in the Valley might want to make that purchase soon. One area that is very close to reaching the $1-million benchmark price are Cloverdale at $998,100, followed by two others: North Surrey at $941,800 and North Delta at $914,900. I would be happy to show you some homes that would be good investments in any of these areas.

The greatest sales activity in the Fraser Valley continues to be in attached homes, with 425 townhouses and 426 condominiums sold in November. The market is still “hot” so I encourage anyone who is really wanting to buy in the region to make an offer without delaying. The average length of time to sell a townhouse last month was 21 days, and 17 days for a condominium. These two property types provide some affordable prices, especially for young singles who are getting into the condominium market for the first time, or young couples who are looking for larger townhouse to start raising a family. The November benchmark price for Valley townhouse was $505,700, and for a condominium $376,700. You can see at these prices why the Valley is so popular. Below, I have selected some areas where I think there are some excellent choices for buyers who are watching current prices.

For townhouses, this month I want to draw your attention to the areas of North Delta, and South Surrey/White Rock. Both these areas have seen an interesting benchmark price change from October to November. They are the only two Fraser Valley areas where the townhouse benchmark has actually decreased. A decrease in price is unusual when so many people are looking to buy, but it does not necessarily mean that the value of the property has decreased. Decreases can occur in short term periods depending on variety of reasons, ranging from the supply-demand ratio to a specific seller’s personal circumstances and desire to sell. In North Delta, the November benchmark price for a townhouse was $564,100, a 2.5 per cent decrease from October. In South Surrey/White Rock, the benchmark price was $642,600, a 0.8 per cent decrease from October. For condominiums, I suggest my clients would find a very nice unit in a price range similar to the Valley benchmark price in the following areas: Here I have also included the one month rate of change since October. There were no decreases for this property type. Starting as far out as Langley, the benchmark price was $389,900, a 2.6 per cent increase; Surrey was at $371,900, a 2.1 per cent increase; North Surrey at $362,000, a 2.0 per cent increase; and North Delta at $328,100, a 0.9 per cent increase.

I am always keeping my eye on market trends, so please give me a call if you have any questions at all about home prices, or what is available for your specific needs. I love to work with numbers, and people, and I am happy to look at your specific requirements to help you with the purchase or sale of your home.

Thanks for reading!

Sibo Zhang, REALTOR®

Metro Vancouver/Fraser Valley Market Update, November 2017

November has announced that Winter is just around the corner. The noticeable drop in temperature is a good reminder to get prepared for the coming season; snow tires, Christmas decorations, maybe a short holiday to a warmer region. There are lots of things to do before winter rolls around.

Metro Vancouver

Another noticeable thermometer change of a different sort this November – with importance for home shoppers – was the big jump in residential sales last month. The Real Estate Board of Greater Vancouver reported that October’s sales volume was 7.1 per cent higher than September’s, and a huge 35.3 per cent higher than one year ago. In fact, last month’s sales volume was 15 per cent higher than the 10-year average for the month of October. However, there’s one prominent figure that has remained almost unchanged from last month – and very close to what it was this past summer: the composite benchmark price for all residential properties in Metro Vancouver. My monthly newsletter readers have been following my review of this benchmark price since it surpassed the $1-million mark in July this year. Since then, its rate of increase has really slowed down – a psychological threshold I have speculated – with the October price of $1,042,300 a mere 0.5 per cent higher than the preceding September bench mark price. And what is particularly interesting is that this rate of increase is exactly the same as the rate of decrease for the benchmark price of a detached property ($1,609,600) in the same month-over-month period. Now, that may well be just a curious coincidence, but it makes one suspect a hidden inverse correlation between detached properties and other types of residences in the current market. In other words, are homebuyers shifting from one housing type to another at this price level? If so, this would support my hypothesis of a price threshold for detached homes; and there was a similar increase in sales activity for both townhouses and condominiums in October.

The October benchmark price for apartments increased 1.0 per cent from the September 2017 price, to reach $642,000. The benchmark price increase for townhouses for the same period was 2.0 per cent, reaching $812,400. These prices are still attracting a lot of buyers. The inventory of available properties in Metro Vancouver in October was 9,137, a decrease of 3.5 per cent from September. Below I have selected some areas where the benchmark prices (as of October 2017) for apartments and condominiums – the market segment of interest to most of my clients – are currently recommended for viewing.

For apartments, I have selected four areas that are closest to the Metro Vancouver benchmark price of $642,000. Each of these areas has its own benchmark price above $600,000, providing prospective buyers with similar property characteristics in the same price range but in distinctly different geographical locations. As usual I have also indicated the most recent rate of price change from the preceding month. You can then narrow your search according to your preferred area to live. In South Burnaby the benchmark price was $664,200, which was the same price in the preceding month; in Burnaby East, where the benchmark price was $661,100, with a decrease of 3.1 per cent from the preceding month; in Port Moody, which had a benchmark price of $613,399 and a 2.0 per cent increase from the preceding month; and Richmond, where the benchmark price was $609,600 with a 1.6 per cent increase from the preceding month.

For townhouses, the benchmark price for Metro Vancouver was $802,400. I have again selected four areas closest to this price, excluding Whistler and West Vancouver because they are each over the $1-million threshold, and Squamish at 899,900, simply because most of my clients are looking for something closer to Vancouver. The four remaining areas are: North Vancouver at $977,000 with a 1.3 per cent increase over the preceding month; Vancouver East at $855,200 with a 0.2 per cent increase over the preceding month; Richmond at $800,000 with a 0.2 per cent decrease over the preceding month; and Burnaby South at 762,300 with a 1.9 per cent increase over the preceding month.

Fraser Valley

If you are in the market for a townhouse or condominium, the Fraser Valley is where I have been directing my readers for value properties at prices that are still within the range of first-time buyer budgets. Certainly, I can help you find a detached property if that is what you are after. The benchmark price in October for a single family detached home was $971,900, which is close to the benchmark price in Metro Vancouver, but still under the $1-million mark. So, if the same pattern holds for price increases as discussed above, the rate of increase may start slowing down soon. It will be interesting to watch if this pattern holds in the Valley as it has done in Metro Vancouver. However, the major sales focus in the Valley is still in the market segment for attached properties. This typically offers what young families are looking for in a townhouse, or for young singles just starting out with a condo. This is an excellent strategy for your longer-term living plans because you start building equity in owning a property. As your family may grow, and your work career develops, you will be in market in which you can move up in value if you like. This is a much more desirable position to be in than trying at a later stage to get into a market that is relentlessly pushing upwards in value.

But there is only one way to describe sales activity in the Valley – it is hot! This past October saw overall sales reach the second highest level in history, with an increase of 23 per cent over October 2016, and 11.1 per cent higher than September 2017. The attached sales were 56 per cent of all market activity with sales of condominiums reaching 591 units and townhouses at 418.

The October benchmark price for a Valley townhouse was $502,800 and for a condominium, $369,400. I have again selected some areas where I see some very good value at prices that are in the affordable range for my clients. I hope you will find the following selection a useful guide in your search for what you want. Each of my selected areas is as close possible to the benchmark price while remaining in the $500,000 range with the $100,000 increment for each benchmark price. I have also included the last month’s rate of change in the price for that area.

For townhouses, the October Valley benchmark price in North Delta was $579, 300 with a 0.8 per cent increase over the preceding month; Cloverdale at $562,700 with a 0.4 per cent increase; Surrey at $540,300 with a 1.2 per cent increase; and North Surrey at $510,600 with a 0.8 per cent increase.

For condominiums, the October Valley benchmark price in Langley was $379,100 with a increase of 2.9 per cent increase over the preceding month; Surrey, at $364,200 with a 3.8 per cent increase; North Surrey at $354,800 with a 3.2 per cent increase; and North Delta at $345,100 with a 3.6 per cent increase.

Please let me know if I can help you with any specific market questions. I am more than happy to crunch the numbers that can help you make the best decision for your home buying plans.

Thanks for reading!

Sibo Zhang, REALTOR®

July 2017 Real Estate Market Update for Greater Vancouver and Fraser Valley

Metro Vancouver

I’m offering a prize for my clients in Metro Vancouver this month. Can you correctly guess when the composite benchmark price for a residential property in Greater Vancouver will exceed $1-million, and by how much? Here are some clues: In April this year it was $906,700, which was a 1.2 per cent increase over January 2017. In June, it was $998,700, a 1.8 per cent increase over May. Based on the recent rate of monthly increases, it could break the $1-million (Canadian) mark very soon. For the person who guesses the closest price over $1-million and in which month this occurs, as reported in the MLS Home Price Index of the Real Estate Board of Greater Vancouver, I will prepare a customized Comparative Market Analysis (CMA) of your current property. Each CMA is an estimate of the owner’s house value using its condition, location (neighbourhood study), real estate market study, and recently sold homes in the same area. Send me your guesses zhangsibo@hotmail.com by the end of this month (July 2017), and our winner(s) will be announced in a coming newsletter in mid August 2017. Be sure to include your name and phone number so we can collaborate on your CMA. And please be assured, this isn’t a sales pitch or a solicitation. I love to crunch numbers for my clients.

The Greater Vancouver area includes Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta. The composite benchmark price for residential properties is an average for comparable residential properties in Metro Vancouver, including Single Family Detached homes, Apartments, and Townhouses.

Fraser Valley

I’m making the same prize offer to my clients interested in Fraser Valley properties. Here the combined benchmark price for all residential properties was $703,900 for the month of June 2017. This was a 10.3 per cent increase over six months ago and a 2.0 per cent increase over the preceding month of May. The recent rate of monthly increases suggests a similar price rise in coming months, although the $1-million mark for the combined benchmark price will likely lag Metro Vancouver by a few months. One interesting observation in the Fraser Valley market is that apartment sales are currently the hottest driver of demand pricing, with 27 per cent of all sales activity in the Valley in June – a 12.2 per cent increase over May sales. Apartment and townhouse price increases in the Valley have the fastest rate of price increases at present, so watching how they factor into the overall benchmark price is important. The benchmark price for a Valley apartment in June was $325,300 and for a townhouse, $467,000. This represents a three-month increase of 9.4 per cent and 7.7 per cent respectively. I will look forward to your guesses for breaking $1-million mark in the Fraser Valley’s combined benchmark price, in like manner to my Metro Vancouver challenge above. And if you happen to win both predictions, you can designate one of your prizes of my Comparative Market Analysis to a friend of your choice.

The Fraser Valley area includes North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission. The combined benchmark price is for all residential properties described as Single Family Detached, Apartments and Townhouses as reported by the Fraser Valley Real Estate Board.