It is projected that both the Fraser Valley and Greater Vancouver will see another solid real estate year in 2008, with the trend being more selection for buyers and prices rising at a slower pace than we have seen in recent years.
The BCREA (British Columbia Real Estate Association), forecasts that the average residential price increases we will see in 2008 in the Fraser Valley will be approximately six percent. They expect that detached homes will rise approximately six percent, but that townhomes may rise as much as eight percent and apartments somewhere in between, at approximately seven percent.
Cameron Muir, BCREA's chief economist, projects listing volumes will continue to increase in the Valley resulting in, "less upward pressure on prices, reducing the number of multiple offers, and giving consumers and members more time for comparison and negotiation."
"How can prices continue to rise after so many years of increases?", you may ask. Muir says consumer confidence in the Lower Mainland and Fraser Valley remains high, "Despite some challenges in the economy such as the high Canadian dollar, we have strong job growth, wages rising higher than inflation and mortgage rates are expected to edge down in the first half of 2008."
Overall experts predict continued stability in Fraser Valley's 2008 housing market, with the resale market remaining sound, new construction at a steady level and hot demand for rental and apartment units, all due to underlying strong economic fundamentals.
Tuesday, January 15, 2008
Tuesday, December 18, 2007
The Canadian Dollar, Housing Starts, and Retail Sales Up
Good news for Canadians! Seasonally adjusted housing starts are up 19.6% for September over August. Multiple starts account for the bulk of the increase with urban starts up 22.9%. Urban starts were up in all five regions of the country. But that's not all. Canadian retail sales were up 4.3% for the month of August over August of 2006 according to CMHC. That equates to a 0.7% rise for this August rather than the 0.5% rise predicted by Bay Street. This likely reflects the 8% increase in income growth reported so far. Both the number of jobs and the job quality index have risen to the highest levels in 2 years.
Greg Anderson, director of foreign exchange for the Netherlands’ ABN Ambro bank in Chicago believes the increases in Canadian dollar prices can be credited to the recovery of gold, oil, and copper prices. Canadian dollar increases against US currency were around 11.88%, 5.52% against the Euro, and 8.80% against the British Pound. Bank of Canada Governor David Dodge believes much of the increase is due to market speculation, stating that though terms of trade have improved over the last three months the improvement was not sufficient to justify the increase.
Finance Minister Jim Flaherty seems to agree but has recommended that retail prices of consumer goods be rolled back to US prices to reflect the relative currency values between US and Canadian dollars. This will help stock turnover, eliminating stores of old stock. Some major retailers, like Wal-Mart and Zellers have already begun to adjust prices.
Dennis Gartman, a writer for a US investment newsletter, commented that the Bank of Canada is not likely to respond to comments from Dodge and Flaherty with lower rates. Sal Guatieri, economist for BMO Nesbitt Burns (wealth management division of Bank of Montreal) speculated that if downside risk is supported by data, a rate cut may appear early next year.
Greg Anderson, director of foreign exchange for the Netherlands’ ABN Ambro bank in Chicago believes the increases in Canadian dollar prices can be credited to the recovery of gold, oil, and copper prices. Canadian dollar increases against US currency were around 11.88%, 5.52% against the Euro, and 8.80% against the British Pound. Bank of Canada Governor David Dodge believes much of the increase is due to market speculation, stating that though terms of trade have improved over the last three months the improvement was not sufficient to justify the increase.
Finance Minister Jim Flaherty seems to agree but has recommended that retail prices of consumer goods be rolled back to US prices to reflect the relative currency values between US and Canadian dollars. This will help stock turnover, eliminating stores of old stock. Some major retailers, like Wal-Mart and Zellers have already begun to adjust prices.
Dennis Gartman, a writer for a US investment newsletter, commented that the Bank of Canada is not likely to respond to comments from Dodge and Flaherty with lower rates. Sal Guatieri, economist for BMO Nesbitt Burns (wealth management division of Bank of Montreal) speculated that if downside risk is supported by data, a rate cut may appear early next year.
Sunday, November 18, 2007
Mission Residents and REALTORS® Help Local Charities
The 13th Annual REALTORS® Care Blanket Drive runs from November 26 to December 3, 2007. Last year REALTORS® from Fraser Valley and Greater Vancouver collected over 3,300 bags of warm clothing and bedding and delivered them to over 30 local charities. Members take great pride in the fact that Blanket Drive contributions stay in the communities in which they are donated. Last year in Mission we collected 132 bags of clothing, blankets, etc. to go to the local charities, helping those in OUR community who needed it most. The importance of the Drive cannot be stressed enough. These are tough times for some individuals and families.What is most needed are warm and waterproof clothes - mostly for men, but also for women and children. So please donate any socks, shoes and boots, pants, jeans, sweaters, jackets, hats, toques, scarves, and gloves that you are able to do without ... because someone else can't do without them. Also much needed are blankets and tarps. Your donations will be very much appreciated and will be accepted at any Mission Real Estate office between Nov. 26 and December 3rd, 2007. If you have donations and are unable to make it to a local real estate office, please call me and I will be happy to come and pick them up from you.
Photo: REALTORS® (L to R) Dean Tweedle, Jodi Kehler, Debbie Leighland, and Cyndi Polovina are some of the local volunteers of the 50 REALTORS® from Chilliwack to Squamish helping make the 13th Annual REALTORS® Care Blanket Drive happen.
Wednesday, October 17, 2007
Timing Your Listing
It was suggested by one local REALTOR® in a flyer delivered by Canada Post today that the
inventory in the fall and winter tends to be low, and therefore, the last quarter of the year is a great time to sell.
The statistics released from the Fraser Valley Real Estate Board for September, suggest otherwise. Inventory is quite high right now, and we are experiencing a Buyer's Market, (also according to the statistics package for September.)
That is not to say that this is not a good time to sell. Winter prices can be a few percentage points lower than the peak price in spring/summer of the same year, before climbing back up in February/March of the following year. If, as has happened historically at this time of year, we are in a temporary period of moderately declining prices, then a seller could sell as the downward swing begins, only to actually buy a month or two later as the prices have continued to follow the downward decline. (Sell at -1% and buy at -3%, for example). If selling a home whose peak value this year was $400,000.00 and prices have by that time dropped 1%, they could see it as a loss of $4,000.00. However, if they are then buying a home for $300,000.00 and prices have by that time dropped 3%, they will have saved $9000.00 on that purchase, for a net gain of $5,000.00. If they were trading up to a home of value of $580,000.00 and prices had dropped from the peak value by 3%, they would save $17,400.00 on their purchase and be $13,400.00 ahead. So, whether upsizing or downsizing your mortgage, you would be financially wise to sell at this time, and make your purchase before the price upswing.
The statistics released from the Fraser Valley Real Estate Board for September, suggest otherwise. Inventory is quite high right now, and we are experiencing a Buyer's Market, (also according to the statistics package for September.)
That is not to say that this is not a good time to sell. Winter prices can be a few percentage points lower than the peak price in spring/summer of the same year, before climbing back up in February/March of the following year. If, as has happened historically at this time of year, we are in a temporary period of moderately declining prices, then a seller could sell as the downward swing begins, only to actually buy a month or two later as the prices have continued to follow the downward decline. (Sell at -1% and buy at -3%, for example). If selling a home whose peak value this year was $400,000.00 and prices have by that time dropped 1%, they could see it as a loss of $4,000.00. However, if they are then buying a home for $300,000.00 and prices have by that time dropped 3%, they will have saved $9000.00 on that purchase, for a net gain of $5,000.00. If they were trading up to a home of value of $580,000.00 and prices had dropped from the peak value by 3%, they would save $17,400.00 on their purchase and be $13,400.00 ahead. So, whether upsizing or downsizing your mortgage, you would be financially wise to sell at this time, and make your purchase before the price upswing.
There is also a huge benefit to buying in the winter, whether it is your first home purchase, or not. You will see the home as it shows in the winter months, and be able to tell much more about how well the home systems are performing (windows, roof, humidity control, etc.)
Your particular situation of circumstances must be considered before a decision regarding timing your listing can be made. There are also benefits to listing in the spring, for some sellers, depending on their personal set of circumstances. I would be more than happy to review the statistics with you and help you assess your best time to list, based on your situation. Please never hesistate to give me a call for a Free Market Evaluation, and/or advice regarding the best time to sell.
Wishing you and your families a happy, healthy fall and winter,
Cyndi Polovina
Friday, August 10, 2007
July Sales Climb in the Fraser Valley
Sales on the Fraser Valley Real Estate Board's Multiple Listing Service® (MLS ®) in July 2007 were the second highest on record for that month.
A total of 1,984 sales were processed through the MLS ® in July, an increase of 21% compared to 1,635 sales the same month in 2006, and only a 3% decrease compared to the strongest July on record, 2,051 sales in 2005.
Jim McCaughan, President of the Fraser Valley Real Estate Board, attributes July's near record sales to a number of factors. "BC's economy continues to hum along, Fraser Valley REALTORS® are receiving a strong influx of new listings and some of our clients are feeling a little uncertainty about where interest rates are going. It all adds up to a desire to invest in real estate now."
"Average annual price increases remain solid, however we are seeing price increases start to moderate on a month to month basis," says McCaughan.
In Mission, B.C, the average price of a single detached home went from $332,071 in July 2006 to $387,293 in July 2007, a change of $16.6%. For townhouses the change was 14.1%, with the average price going from $252,600 to $288,333. The largest gains were made on Mission apartments. The average price of the apartments sold in July 2006 was $185,750, compared to an average of $232,466 in July 2007, a whopping change of 25.1%!
If you are in need of a Free Market Evaluation to find out the value of your Mission, B.C. or Abbotsford, B.C. home, please give Cyndi a call at 604-820-7733.
A total of 1,984 sales were processed through the MLS ® in July, an increase of 21% compared to 1,635 sales the same month in 2006, and only a 3% decrease compared to the strongest July on record, 2,051 sales in 2005.
Jim McCaughan, President of the Fraser Valley Real Estate Board, attributes July's near record sales to a number of factors. "BC's economy continues to hum along, Fraser Valley REALTORS® are receiving a strong influx of new listings and some of our clients are feeling a little uncertainty about where interest rates are going. It all adds up to a desire to invest in real estate now."
"Average annual price increases remain solid, however we are seeing price increases start to moderate on a month to month basis," says McCaughan.
In Mission, B.C, the average price of a single detached home went from $332,071 in July 2006 to $387,293 in July 2007, a change of $16.6%. For townhouses the change was 14.1%, with the average price going from $252,600 to $288,333. The largest gains were made on Mission apartments. The average price of the apartments sold in July 2006 was $185,750, compared to an average of $232,466 in July 2007, a whopping change of 25.1%!
If you are in need of a Free Market Evaluation to find out the value of your Mission, B.C. or Abbotsford, B.C. home, please give Cyndi a call at 604-820-7733.
Wednesday, July 4, 2007
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.
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.
Monday, June 11, 2007
Real Estate Market Offering Best of Both Worlds!
Buyers in the Fraser Valley have a much better home selection than this time last year and sellers continue to see strong return on their investment.
We are still in a sellers' market, but we are on the balanced end of that category. A more balanced market is good news for buyers because it gives them a wider selection and more time to think about a home before they make a decision. However, the news is still good for sellers since home prices have remained strong and stable in all catetories due to continued high demand.
The best way to get the highest return on your investment is to engage the services of a licensed, professional REALTOR® to help you market and negotiate the sale of your home.
We are still in a sellers' market, but we are on the balanced end of that category. A more balanced market is good news for buyers because it gives them a wider selection and more time to think about a home before they make a decision. However, the news is still good for sellers since home prices have remained strong and stable in all catetories due to continued high demand.
The best way to get the highest return on your investment is to engage the services of a licensed, professional REALTOR® to help you market and negotiate the sale of your home.
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