fraser valley real estate

A great supply of home listings for affordable spring shopping

If you’ve been waiting for sunnier weather to start home hunting this spring, the month of May has not disappointed – nor has the abundant inventory of listed properties which increased by 16 per cent In April. Figures for the Greater Vancouver area showed there were over 5,700 new listings last month, bringing the total inventory for all housing types to 14,357. This is very close to the total inventory one year ago, putting prospective buyers in a very commanding position to make an offer at this time. Prices on average, having dropped considerably since last summer, are now in an affordable range for more people. We could therefore see a spike in spring sales, so I encourage you to take a look now. Residential home sales in the region last month increased by nearly 6.0 per cent from the month before, and I see no reason why this upward swing will not continue at this time.

There continues to be a focus by news media on the declining number of home sales based on figures from ten years ago. This may make interesting reading for the political interest in government measures behind the price drop in the region. However, I want to point out that what is overlooked in much of this long-term discourse is the short-term activity which holds some important data for anyone in actual purchase mode right now. The increase in month-over-month sales is one indicator that there is still upward price pressure in the market. Note that composite benchmark price for all residential properties in Metro Vancouver was virtually unchanged (0.3 per cent decrease) from March to April. In the specific property types below, I report my selected monthly changes based on benchmark prices for the end of April. But you may be surprised to note that not all areas show a decline. Look for example at the one-month condominium price increases in Burnaby East of 4.5 per cent and 1.5 per cent in Burnaby North. As prices decline some places, they increase in others.                

Detached Homes

The benchmark price for a single-family detached home in Greater Vancouver at the end of April was $1,425,200, a decrease of 0.8 per cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $2,948,400 and Sunshine Coast at $611,400. (Note I include the Sunshine Coast only as a factor in the average, but 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: North Vancouver at $1,499,400, a decrease of 0.2 per cent from the preceding month; Richmond at $1,531,000, a decrease of 1.0 per cent from the preceding month; and Burnaby South at $1,532,100, a decrease of 0.8 per cent from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby North at $1,391,000, a decrease of 1.5 per cent from the preceding month; Port Moody at $1,366,200, a decrease of 2.6 per cent from the preceding month; and Vancouver East at $1,357,200, a decrease of 2.4 per cent from the preceding month. 

Townhouses

The benchmark price for a townhouse in Greater Vancouver at the end of April was $783,300, no change cent from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,167,700 and Maple Ridge at $542,600. The three municipalities closest to the benchmark on the higher side of the average were: Vancouver East at $816,500, a decrease of 0.6 per cent from the preceding month; North Vancouver at $957,700, a decrease of 0.5 per cent from the preceding month; and Vancouver West at $1,167,700, 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: Richmond at $780,200, a decrease of 1.4 per cent from the preceding month; Burnaby South at $679,200, a decrease of 1.3 per cent from the preceding month; and Burnaby North at $708,900, a decrease of 2.4 percent from the preceding month. 

Condominiums

The benchmark price for a condominium in Greater Vancouver at the end of April was $656,900, no change from the preceding month. The extremities of this average were West Vancouver at $1,128,500 and Maple Ridge at $348,600. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $679,200, a decrease of 0.3 per cent from the preceding month; Burnaby East at $754,900 an increase of 4.5 per cent from the preceding month; and Vancouver West (not West Vancouver) at $764.600, a decrease of 0.6 per cent from the preceding month. The three municipalities closest to the  benchmark on the lower side of the average were: Richmond at $654,900, a decrease of 0.2 per cent from the preceding month; Port Moody at $633,000, a decrease of 0.3 per cent from the preceding month; and Burnaby North at $611,800, an increase of 1.5 per cent from the preceding month. 

How Can I Help?

Please let me know how I can help you.  There are many factors in your decision-making process that I am qualified to advise on. Whether you are wondering about mortgage planning and finance procedures, or desiring information on a specific property or area, I can help.  If you considering listing your property for sale, I am able to advise you on the optimal price and provide you with a detailed market comparison to other properties in your area of interest. And remember, I can recommend reputable and quality tradespeople if you are considering home renovations.  It gives me great pleasure when I can assist my clients in any way.  

Thanks for reading!

Please contact me for more information.

604-779-7992

sibo.zhang@gmail.com

Sibo Zhang

BC’s Referendum on Electoral Reform

For some reason I can’t stop thinking about something called the Pareto Principle these days. I guess it has to do with my training in statistics, and the current referendum on BC’s electoral reform. I’m not going to tell anyone here on how I think they should vote, but I do encourage all eligible voters to get their votes in the mail in time. The deadline has been extended from November 30 to December 7 because of postal service disruption. There is of course a good civic responsibility argument to made for voting, but that’s not the primary reason why I hope the referendum will get a high percentage of voter participation.

Let me explain why the Pareto Principle is important.

The 80/20 rule

Often called the 80/20 rule, the Pareto Principle refers to a division frequently-found in many fields. It is not really a rule, as that would suggest it must occur. It’s probably best described as an observation that holds true in an approximate way in many circumstances. For example, the man who discovered it, an 19th Century Italian economist named Vilfredo Pareto, noticed that about 20 per cent of Italy’s population owned close to 80 per cent of the country’s land. A similar comparison was made by the United Nations in the late 20th Century that about 20 per cent of the world’s population controlled about 80 per cent of the world’s wealth. There have been lots of other similar observations. Generalized, these observations say that about 80 per cent of results come from about 20 per cent of the causes. As I mentioned, this is not an absolute rule, but this ratio does turn up in a lot of activities. So, will it be the case in BC’s current referendum on electoral reform?

BC referendum on electoral reform

I am hoping we get a large voter participation our province’s current referendum on our election rules. By this I mean, I hope a lot more than 20 per cent of eligible voters will cast their ballot. If we get only a small portion, say 20 to 30 per cent of eligible voters, and their vote determines the system which the large majority of us will then use, it doesn’t strike me as if the referendum for reform is any better than the election system that is being reformed. The reason we are having this referendum is that a lot of people think our elections typically elect governments which do not reflect the popular vote, that is the total number of votes cast. They point to the current system which is called First Past the Post as the problem. If you happen to be a horse racing fan you will recognize this term. In a race of say 10 horses, the one that passes the finish post first is the winner. That’s pretty simple to understand. In an election which has many electoral ridings, and various political parties represented by different candidates in each riding, it means the winner is the one that has more votes than any other individual candidate. But since there are typically more than two candidates in each riding, it is usually the case that the winner gets elected with less than 50 per cent of the popular vote. When this is extended to all the ridings across the province, then the party that forms the government often has the support of less than 50 per cent of the people who voted. Sometimes the governing party may have as little as 30 per cent or less of the popular vote.

The current Referendum is a vote on whether we should keep the First Past the Post system or if we should also have another way of adding more winners according to a method called Proportional Representation, or Pro-Rep for short. There are three versions of pro-rep a second question on in the Referendum and I am not going to attempt to describe these versions to you. I urge you to read the Referendum questions carefully yourself and make up your own mind. The important thing it that you send in your ballot. Let me explain why.

A spoiled ballot can be better than voter apathy

A big problem with all elections is voter apathy. When only 20 or 30 per cent of the eligible voters cast their vote, we don’t really know what the electorate wants. Regarding the current Referendum, I have heard many people say they don’t understand it and therefore they are not going to vote. For those who may feel the same way, I think it would be better if you mailed in a spoiled ballot rather than not voting at all. If you write on your ballot that you don’t understand it well enough to select from the choices offered, your opinion could still be publicly noted if officials informed the media. But if you don’t vote at all, it just leaves a big question mark about which system you want. A spoiled ballot may not be the best option as a general rule, but it is better than not voting at all because it can provide information on why people didn’t vote. It may not help with the final outcome of the election, but it would help to show that voter apathy was not the problem. It can show that don’t want the Pareto Principle to rule in the Referendum.

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 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®

April’s Market Update for Metro Vancouver and the Fraser Valley

OUR CURRENT RESIDENTIAL MARKET

As we move into the second quarter of 2018, I’m sure everyone is looking forward to more sunshine and fewer rainy days. The weather can be a factor in our outlook and affect our decision-making even on major transactions like buying or selling a residential property. That’s a good reason to pay close attention to some key market trends occurring in local prices and inventories. With so much recent news on new government regulations and taxes on property, it’s easy to develop negative views that are not wholly informed by the facts of the marketplace. Another thing that can contribute to unnecessary pessimism is an over-emphasis on longer term historical comparisons. Regular readers of my monthly newsletter get a picture of the marketplace which is as up-to-date as available statistics make possible, allowing them to understand the where and why of prevailing prices in a context that is relevant to current circumstances. I will continue to breakdown the market segments for each property type in the following geographical regions of Metro Vancouver and the Fraser Valley.

METRO VANCOUVER

In the past month of March there were total of 4,450 new listings in Metro Vancouver which was increase of 5.4 per cent over the preceding February. That’s good news for the active home seeker; yet, it’s fewer than the 4,762 listings that occurred in the same month one year ago. The latter statistic might be of interest in broader academic analysis of the Vancouver residential market, but it’s probably not going to affect a decision to buy or sell at the current time because the prevailing market psychology doesn’t believe that prices are going to move backwards in time. 00 For that reason, I am always talking to my clients to understand what they really want to know for the decisions that are important to them. And what I hear is that you wish to know about what is happening now, and in a context of what it points to in the near term. So here are my selected key metrics based on market activity tabulated on the end of last month.

Across all residential property types in Metro Vancouver there were 2,517 sales at the end of March. This was 14 per cent higher than the preceding month of February, so we can see there is still upward pressure on based on demand and the relatively low increase in new listings. At the end of March, the total inventory of listed homes in Metro Vancouver was 8,380. Breaking down the demand in each property type, we see 14.2 per cent for detached homes; 39.9 per cent for townhouses; and 61.6 per cent for condominiums. The composite Benchmark price for all Metro Vancouver residential properties at the end of March was $1,084,000, an increase of 1.1 per cent over one month. Below I will look at each property type in more detail.

Detached Properties

The Benchmark price for a detached residential property in the Greater Vancouver area at the end of March was $1,608,500, more than half a million dollars above the composite benchmark price for the region. This may give you an idea of a general price level. However,it needs to be considered in relationship to the property types factored into the composite benchmark, which we can look at under their individual headings below. For Single Family Detached homes, the Benchmark price is an average between price extremities of $3,449,000 in Vancouver West (noteworthy: higher than West Vancouver at $3,115,400.) and $606,000 on the Sunshine Coast. I have selected three municipalities closest on the upper side of the Benchmark, and three which are closest on the lower side, where you can see the price change in the past month. On the higher side of the Benchmark were South Burnaby at $1,673,700, a decline of 0.5 per cent in one month; Richmond at $1,708,400, an increase of 0.6 per cent in one month; and North Vancouver at $1,723,200, an increase of 2.2 per cent in one month. On the lower side of the Benchmark are North Burnaby at $1,544,100, an increase of 0.7 per cent in one month; Vancouver East at $1,553,100, a decrease of 0.5 per cent in one month; and Port Moody at $1,484,800, an increase of 0.1 per cent in one month.

Townhouses

The Benchmark price for townhouses in the Greater Vancouver area at the end of March was $835,300, an increase of 2.0 per cent over one month. This average had extremities of $1,271,000 in Vancouver West, and increase of 1.7 per cent in one month; and $575,100 in Maple Ridge, an increase of 4.3 per cent in one month. Excluding Squamish and Whistler for their distance from Metro Vancouver, I have selected three municipalities closest on each side of the Benchmark. On the upper side are Vancouver East at $908,200, an increase of 4.5 per cent in one month; North Vancouver at $1,005,400, an increase of 0.7 per cent in one month; and Vancouver West at $1,271,000, an increase of 1.7 per cent in one month.

Condominiums

The Benchmark price for condominiums in the Greater Vancouver areas at the end of March was $693,500, an increase of 1.6 per cent in one month. The extremities for this average were West Vancouver at $1,278,600 and Ladner at $459,300. Again, excluding Squamish and Whistler because of their distance for Metro Vancouver buyers, here are three municipalities with closest prices on the upper and lower side of the Benchmark, along with their month over month price change: South Burnaby at $727,300, an increase of 2.4 per cent in one month; East Burnaby at $727,800, an increase of 3.0 per cent in one month; and Vancouver West at $844,700, an increase of 1.1 per cent in one month. Closest to the Benchmark on the lower side were Port Moody at $675,000, an increase of 1.0 per cent in month; Richmond at $659,700, an increase of 0.3 per cent in one month; and North Burnaby at $641,600, a decrease of 0.1 per cent in one month.

FRASER VALLEY

The Valley continues to be a very active market which shows no sign of slowing. With Spring around the corner, I urge anyone who is seriously contemplating a purchasing a Valley residence of any type to take advantage of open houses in their desired category. There were 2,865 new listings in March which was a close to a 25 per cent increase from February’s new listings. Keep in mind that new property listings in an active market can attract more prospective buyers, especially as the weather invites more viewers. Even with an increased inventory, demand is still very strong putting upward pressure on prices. At the end of last month there was a total inventory almost 5,000 properties overall. Townhouses and condominiums made up just over 50 per cent of all Valley sales and were the fastest to sell after their listing, on average 16 days for a townhouse and 13 days for a condominium. Single detached homes sold on average in 30 days after listing. Below I examine at each property type by their current Benchmark prices and make some recommendations on which municipalities you might wish to look.

Single Family Detached

A major milestone has been reached in the Fraser Valley. The million-dollar mark for a single detached residence was reached for the first time at the end of March with a Benchmark price $1,001,400, an increase of 0.9 per cent in one month. We have been waiting for several months to see this threshold reached. It now remains to be seen if this will be a psychological threshold as well, both for buyers and sellers. For the former, some prospective buyers may decide they are now priced out of a single detached home and begin to look for a home of another property type. For sellers, we will have to see if the new price level encourages more listings. Focusing on prices closest to this Benchmark average, along with their month-over-month price change, here is my standard selection of three areas above and below the Benchmark. On the upper side of the Benchmark were: Langley at $1.026,600, a decrease of 0.2 per cent in one month; Surrey at $1,031,500, an increase of 1.2 per cent in one month; and Cloverdale at $1,045,400, an increase of 0.8 per cent in one month. Closest on the lower side of the Benchmark price were: North Surrey at $980,100, an increase of 0.8 per cent in one month; North Delta at $950,200, an increase of 0.6 per cent in one month; and Abbotsford at $814,000, an increase of 1.3 per cent in one month.

Townhouses

The Benchmark price for a Fraser Valley townhouse at the end of March was $541,800, an increase of 2.0 per cent in one month. The extremities of this average were South Surrey/White Rock at $678,000 and Abbotsford at $383,000. Municipalities with prices closest to the Benchmark were: On the upper side, North Surrey at $573,800, an increase of 2.4 per cent in one month; Surrey at $577,800, an increase of 1.6 per cent in one month; and North Delta at $591,300, an increase of 1.8 per cent in one month; closest on the lower side of the Benchmark were: Langley at $514,900, an increase of 1.3 per cent in one month; Mission at $446,500, an increase of 3.0 per cent in one month; and Abbotsford at $383,000, an increase of 3.1 per cent in one month.

Condominiums

The Valley Benchmark at the end of March for condominiums was $440,400, an increase of or 4.3 per cent in one month. The extremities for this average were South Surrey/White Rock at $524,100 and Mission at $329,500. Municipalities with prices closest on the upper side of this Benchmark were: Langley at $444,500, an increase of 4.8 per cent in one month; Surrey at $452,300, an increase of 5.8 per cent in one month; and Cloverdale at $507,100, an increase of 3.9 per cent in one month. On the lower side of the Benchmark, the closest prices were in North Delta at $425,900, an increase of 8.1 per cent in one month; North Surrey, at $424,900, an increase of 3.5 per cent in one month; and Abbotsford at $336,600, an increase of 6.6 per cent in one month.

AFTERWORD

In closing, I suggest you pay close attention to any trends you may spot in the month-over-month increases in Benchmark prices that I mention in each newsletter. This may help you see where prices are driven by demand and as you become familiar with increases – or decreases – in the short term, this may assist your decision making. However, keep in mind that there may be other factors that cause price changes which is out of the usual range. If you have any questions and need specific information on any housing type in any of the areas in the lower mainland, please don’t hesitate to call me. I keep an close eye on the residential market, and I want to help my clients find what they are looking for, or to make a listing decision when the time is right.

Thanks for reading!

Sibo Zhang, REALTOR®

B.C.’s New Real Estate Taxes – Part 2

The Additional Property Transfer Tax

As mentioned in my last blog in March, one of two new real estate taxes announced by the B.C. government in its 2018 budget this past February is the Additional Property Transfer Tax. In this blog I will provide an outline of the measures covered by this tax and highlight some of the main points that could affect current B.C. property owners and prospective home buyers.

Prior to February 21, 2018, the property tax transfer rate was 15 % on properties in the Greater Vancouver Regional District. After February 21, the transfer tax increased from 15 % to 20 %, based on the fair market value at the time of registration for property transfers in the following areas in the province of British Columbia:

  • Greater Vancouver Regional District
  • Capital Regional District
  • Fraser Valley Regional District
  • Regional District of Central Okanagan
  • Regional District of Nanaimo

Two Important Exceptions

Excluding the Greater Vancouver Regional District, the remaining four regions noted above have two instances where you don’t have to pay the additional transfer tax on property transfers after February 21: First, you don’t have to pay if you register before, or on, May 18, 2018, as long as the property transfer is subject to a written agreement dated on or before February 20, 2018; and second, if the transfer is subject to a court order dated before February 20, 2018, or several other specific legal conditions on property transfers related to divorces, separations, or estates of deceased persons. I advise you to get advice from your lawyer if any of these situations applies to you.

As a general guide, the changes introduced on the property tax transfer took effect February 21, 2018. If you purchase a property that is registered at the provincial Land Title Office, you will need to pay certain transaction costs which are taxable. Without going into the details of the various legally required transactions – which your Realtor can explain to you – I want to point out to you that you can qualify for a reduced tax if you are: a) purchasing your first home; or b) purchasing a newly built home.

The tax is calculated on the fair market value at the time of property registration. Note that properties on the Tsawwassen First Nation lands are exempt from the additional property transfer tax. There are also two other exemptions which I would advise you get legal advice if you not sure they apply to you. The first is any exemption that applied to you for the previous property tax transfer also exempts you from the additional transfer tax, except in the following situations: i) a transfer resulting from an amalgamation; ii) a transfer to a surviving tenant; iii) a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change; and second, if you are confirmed B.C. Provincial Nominee and certain criteria are met for foreign nationals under the B.C. Provincial Nominee Program.

Foreign Nationals and Foreign Entities

If you are a confirmed under the B.C. Provincial Nominee Program when the property transfer is registered with the Land Title Office; ii) the property is to be used as your principal residence; iii) the property transfer is made to an individual. Note that the additional property transfer tax does NOT apply to registration of mutual fund trusts, real estate investment trusts or specified flow-through trusts. You should also note that if you were confirmed as a B.C. Provincial Nominee between August 2, 2016 and March 17, 2017, you might be eligible for a refund of the additional transfer tax if you paid it.

If you happen to be a foreign national, a foreign corporation, or a taxable trustee, there is also an additional transfer tax on residential properties in certain areas of British Columbia, as listed above.

This summary of the new Additional Property Tax is based on information provided by the Government of British Columbia. I have summarized what I think are the major points of interests for my clients; however, like any tax measures, there are always situations that may require more in depth information. I would recommend that if you think you may be in such a situation that you talk to a knowledgeable tax lawyer about your specific situation. I hope the above summary has informed you adequately to understand if the new transfer tax may apply to you, You may find additional information on the new transfer tax at: B.C. Provincial Budget Tax Changes.

I will watch for any changes in these tax rules and report what I see in the blog space. Please feel free to ask for any advice that I might be able to provide. I’m always happy to help in any way I can.

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®

 

Your January Real Estate Recap for Metro Vancouver and the Fraser Valley

A New Year and New Considerations

As we launch into a new year of residential sales across B.C.s Lower Mainland, there are developing issues that prospective home buyers and sellers will want to track, such as how increased mortgage rates and how new government regulations on qualifying for a mortgage may affect the market. I want to help my readers keep abreast of these developments and to make sense of the real estate market dynamics, so I invite you to check this newsletter each month for the latest updates.

In this my first newsletter of 2018, I will start with an overview of the how the residential market place looks compared with last year. This will give you a baseline for watching trends over the coming year, and hopefully will help your plans for either a selling or buying transaction, or simply being an interested observer of one of Canada’s most active real estate market places. I will start first with Metro Vancouver, with the most recent figures from the Real Estate Board of Greater Vancouver

METRO VANCOUVER

Overall, residential prices in the Greater Vancouver area (Metro Vancouver) rose substantially during 2017. The composite Benchmark price for all residential properties in Metro Vancouver at the end of last year was $1,050.300. That was almost 16 per cent higher than one year earlier. Breaking down the year-over-year increase to different property types, detached properties rose 7.9 per cent; townhouses rose 18.5 per cent; and condominiums rose 25.9 per cent. The higher relative price increases reflect greater sales activity in the latter two categories.

Detached properties

As was the case for much of last year, detached properties did not show large month-to-month price increases. In that category it still appears to be waiting game. Owners of detached homes are not rushing to list their properties at a Benchmark price of $1,605,800. If it is price that determines when to list a property for sale (remember the maxim: ‘everything has its price’), this suggests owners see more residual value in their detached properties than the current price level would fetch. There was actually a decrease of 54 per cent in detached listings from November to December 2017. So, if you want to consider the purchase of a detached home at this time, I believe it would be an excellent investment even at Benchmark price over $1.5-million. You should also keep in mind that new government regulations on mortgage qualifications (see my blog post for December 2017, Your December Real Estate Recap), as well as the prospect of higher interest rates coming later this year, will likely shrink the number of buyers for higher priced properties in the detached property category. For home seekers with a lower price in mind, I would recommend looking in townhouse or condominium market where there are some very good opportunities with Benchmark prices for properties in Metro Vancouver still under $1-million.

Townhouses and Condominiums

The Benchmark price for townhouses in Metro Vancouver at the beginning of 2018 was $803,700 and for condominiums $655,400. For townhouses, this was a slight decrease of 0.2 per cent from the previous month, while for condos it was an increase of 1.1 per cent. In last month’s newsletter I said I would watch a possible widening in the difference between townhouse and condo prices based on monthly increases and decreases. The current differential is a total of a 1.3 per cent compared to last month’s 0.7 per cent, so it is continuing to look as if a widening gap is beginning. It is too early to be certain at this time, but I’ll continue to track this metric so you can check next month to see how it is developing. Below is a breakdown of my suggested areas to look for these two property types based on Benchmark prices at the end of December 2017. This month I have selected three areas with the greatest month-over-month increase and three with the biggest declines, but each with prices still under $1-million.

For townhouses, the greatest increases in Benchmark prices were in East Vancouver at $879,200, a 2.0 per cent increase over one month; Ladner at $776,900, a 2.7 per cent increase over one month; and North Burnaby at $728,200, a 2.3 per cent increase over one month. The biggest decreases from the preceding month (excluding the outlying areas of Whistler and Squamish) were in North Vancouver at $982,800, a decrease of 0.1 per cent over one month; Port Coquitlam at $632,700, a decrease of 0.5 per cent over one month; and Maple Ridge at $527,500, a decrease of 1.0 per cent over one month.

For condominiums, the greatest increase in Benchmark prices were in Richmond at $637,200 an increase over one month of 4.0 per cent; Pitt Meadows at $422,800, an increase over month of 2.1 per cent; and Burnaby East at $681,400, an increase over one month of 1.9 per cent. Two others also had month-over-month increases of 1.9 per cent: New Westminster at $503,300 and Coquitlam at $502,900. Three areas had one month decreases: North Vancouver at $560,600, down 1.0 per cent; Tsawassen at $462,400, down 1.1 per cent; and Vancouver West at $807,100, down 0.5 per cent.

FRASER VALLEY

The Benchmark price for a detached property in the Fraser Valley at the end of last year was $976,400, a slight increase from the preceding month but still under the $1-million bracket in Metro Vancouver. However, as was the case throughout the year, townhouse and condominium sales dominated residential sales in the Valley at the end of 2017. These two property types made up more than half of all Valley sales 2017, with 5,198 townhouses and 6,183 condominiums.

The Fraser Valley continues to be the area of choice for many first-time home buyers in 2018, both for young families and individuals starting out in their careers. It offers very attractive properties in comfortable and enjoyable neighborhoods with excellent lifestyle options for both families and singles. Public transportation planning across the region makes any of the municipalities an excellent investment option for the long term. And with prices still significantly below those in Metro Vancouver, the Fraser Valley continues as one of the hottest residential markets. In the month December 2017, there were a total of 1,344 sales, the second highest December volume ever. Nonetheless, there were 1,277 new listings during the month, and the inventory for December 2017 ended with 3,818 active listings, so I encourage anyone looking for Valley home to shop seriously at this time. Below I make my monthly recommendations for the areas to search for excellent value. For each property type this first month of January, 2018, I have chosen to compare the year-over-year increase along with the last month increase or decrease. In some municipalities the Benchmark price has crept above the $1-million mark for the first time. Many clients in this market segment want to consider their investment compared to Metro Vancouver, so I have therefore selected four municipalities where the detached Benchmark price is over $1-million. For townhouses and condos, I have selected areas with the biggest increase from one year earlier.

Detached Homes

At the end of 2017, the December Benchmark price in Surrey/White Rock was $1,472,300, an increase of 4.8 per cent from one year earlier, and an increase of 0.2 per cent from the preceding month. The Benchmark price for a detached property in Surrey Central was $1,014,900, an increase of 17.1 per cent from one year earlier, and an increase from one month earlier was 0.2 per cent. In Cloverdale, the December Benchmark price was $1,004,900, an increase of 17.2 per cent from one year earlier, and an increase of 0.7 per cent from the preceding month. In Langley the December Benchmark price was $1,002,200, an increase of 15.8 per cent from one year earlier, and a decrease of 0.5 per cent from the preceding month.

Townhouses

The biggest year-over-year increase in townhouse Benchmark prices at the end of December 2017 was in North Surrey with a Benchmark price of $414,200, an increase of 28.8 per cent from the end of 2016, and a 1.8 per cent increase over the preceding month. The Benchmark price in Surrey Central was $549,700, an increase of 27.2 per cent from the end of 2016, and an increase of 1.6 per cent from the preceding month. In Cloverdale, the Benchmark price was $572,600, an increase of 26.9 per cent and a 0.9 per cent increase from the preceding month.

Condominiums

North Delta saw the biggest year-over-year increase in the Benchmark price for condominiums. There the Benchmark price at the end of 2017 was $361,800, an increase of 44.1 per cent since the end of 2016, and a 3.9 per cent increase over the preceding month. The Benchmark price in Langley was $396,900, and increase of 40.3 per cent over one year, and an increase of 2.0 per cent from the preceding month. In Abbotsford, the Benchmark price was $286,600, an increase of 33.6 per cent over one year, and a increase of 2.5 per cent from the preceding month.

I hope you fill find these suggestions helpful, and I wish you great success in your home search or sale as we begin this new year. I am always eager to help my clients in any way I can. Remember, I keep a close watch on market changes, so please feel free to call me any time you have a question.

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®

Your Fraser Valley and Metro Vancouver Market Update

 

For the last few months I’ve been talking about the curious slowing of price increases for detached homes in Metro Vancouver. The benchmark price in September for a detached property was $1,617, 300, which is only 0.1 per cent higher than August. That’s a remarkable decline in the month-over- month rate of increase, recalling that in July the benchmark price rose above $1-million for the first time. Obviously, there was a big spike as the price moved quickly to the mid-range between $1-million and $2-million.

So, a good question now is why has it levelled off in the last couple of months? Is demand declining at this price point? I believe there are a combination of factors that need to be considered. A general price equilibrium, even for a short period, is also a function of supply – in other words, the available housing stock. If there are a relatively higher number of listings for comparable detached properties, price can become a more competitive issue for the seller. Alternatively, on the buyers’ side, a shift to other types of housing appears to be occurring at this price level. Last month, the ratio of sales to active listings was approximately 15 per cent for detached homes, while townhouses and apartments made up the rest. By way of a general observation then, it appears that the detached home benchmark price is going to remain stable as long as there are new detached listings coming onstream and the supply of townhouses and apartments also remains strong. I would therefore advise those clients who are committed to buying a detached home, that now is a time to strike. This market segment is always going to increase in the long term, so take advantage of a period when price escalation has slowed. For the rest of my clients who are looking at townhouses and apartments, here are my suggestions for good opportunities based on the latest figures.

For townhouses, the benchmark price for September in the Greater Vancouver area was $786,600, while in the Lower Mainland it was $661,600. At less than 50 per cent of the price for a detached home, this category of home is very attractive to young families, many on starting salaries and therefore wanting affordable monthly mortgage payments. This month I have selected some municipalities that have good value while staying on the lower side of average price for the Lower Mainland. These include: Coquitlam at $641,400; Burnaby (East) at $636,500; Port Coquitlam at $635,400; Port Moody at $605,400; Pitt Meadows at $572,900; and Maple Ridge at $514,600.

For apartments, the benchmark price for September in Greater Vancouver was $635,800; and in the Lower Mainland $585,300. Again, I have selected some municipalities which have average prices on the lower side of the Lower Mainland benchmark in order to assist a large number of clients who are on limited budgets. I have excluded Whistler and Squamish in this selection, although there are some attractively priced apartments in these areas if you wish to live father out. For others, I suggest looking in Burnaby North with a bench mark price at $576,700; North Vancouver at $553,500; New Westminster at $488,600; Coquitlam at $482,300; Ladner at $422,800; Tsawwassen at $451,600; Port Coquitlam at $414,200; Pitt Meadows at $392,300; and Maple Ridge at $262,400.

Fraser Valley

Here’s some really interesting news! If you’ve been following my contest for predicting the month when the Benchmark Price for a single detached home in the Fraser Valley would exceed $1-million, you probably bet the winner would be announced this month. In July, the benchmark price for a Fraser Valley single detached residence was $966,000. It couldn’t get much closer then, but now in September, it has declined to $974,500. Will we see it break the $1-million mark this year, or will it continue to decline? I have now changed the rules of my contest to include guesses in either direction. If you can predict – within 0.25 per cent – how much the benchmark price for a detached residence in the Fraser Valley will change by the end of this month, 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, (neighbourhood study), real estate market study, and recently sold homes in the same area.

Send your guesses to zhangsibo@hotmail.com by the end of this month. Be sure to include your name and phone number so we can collaborate on your CMA. Winners will be announced in my newsletter and on my website www.liveincentralcity.ca.

Looking at other types of residences in the Valley, we see the opposite trend. Benchmark prices for both townhouses and apartments increased month of month – 1.4 per cent higher for townhouses (now $498,900), and 2.5 per cent higher for apartments (now $358,200). These increases are understandable since the Fraser Valley is still a popular area for young families and singles who are purchasing their first residence. For these home seekers, I have again selected some areas in price ranges about equal distance on each side of the benchmark price.

For townhouses, these areas are: Langley at $465,200; North Surrey at $507,900; and Surrey at $534,000.

For apartments, look in the areas of: North Delta at $333,000; North Surrey at $344,000; Surrey at $350,900; Langley at $368,500; and Cloverdale at $415,400.

Please let me know if you have a specific price range or other features in mind for the home you are seeking. I can also help you determine an affordable mortgage for your income and the equity you can build in your home. I love to crunch numbers and to help my clients in any way I can.

Thanks for reading!

Sibo Zhang, REALTOR®