Prices and Selection Still Strong

July 4, 2007 Mission and Abbotsford Statistics Update

Statistics released by the Fraser Valley Real Estate Board today show that June 2007 was one of the best Junes on record. There was only a 3% decrease in sales from June 2006, which was the second highest June on record. There was however a 39% increase in the number of active listings compared to June of last year, leaving more selection for buyers, and allowing them more time to make a decision on which home to buy.

The average price of a single-detached home in Mission climbed from $341,928 in June 2006 to $387,393 in June 2007, an increase of 13.3%. In Abbotsford the same average for those months went from $388,280 to $428,091, an increase of 10.3%.

The question on everyone's minds seems to be "can prices continue this upwards trend?" No one can tell for certain. However, based on the strength of the B.C. economy, the current consumer confidence level, and, of course, the landlock that we have in our region, there is no reason to expect any significant downturn in prices without an economically significant event occuring.

There is only so far east that people are willing to move and still commute to Vancouver. The mountains on the North shore and the border to the South, the water to the West, and of course, the Agricultural Land Reserves throughout the Lower Mainland and Fraser Valley, all leave a shortage of land to develop. Add to that the fact that B.C., and in particular, the southwest portion thereof, is a very desirable place to move for both immigrants and people from other parts of Canada, and we have significant housing demand. Supply and demand dictate that since supply is limited and demand is strong, there is no reason for a significant price decrease in the near future. So First-time Buyers take note: housing is not likely to become more affordable than it is now, so you may want to consider a "stepping stone" approach to home ownership and get into the real estate market now. Buy an apartment, townhome or condo, and plan to upgrade down the road when you can. Don't miss your chance of home ownership, it definitely has many rewards! Call me today.