News Release: November 2, 2010

 

Fraser Valley housing market “getting back to normal”      

(Surrey, BC) – Fraser Valley’s real estate market moved towards balance in October as inventory continued to decrease and sales and prices remained stable.

 

A total of 1,014 sales were processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® in October, a decrease of 3 per cent compared to 1,044 sales in September and a decrease of 40 per cent compared to 1,704 sales in October of last year.

 

Deanna Horn, FVREB President, says, “With help from near record low mortgage rates and a steady decrease in the supply of homes, we’re getting back to what I call a ‘normal’, balanced market.

 

“However, sellers should be aware that demand for homes is strong, yet selective. Buyers in the Fraser Valley recognize that selection, although dropping is still generous and they’re looking for properties priced competitively. Even with carrying costs remaining stable, the affordability threshold is a factor.”

 

The Board received 2,125 new listings last month, a 12 per cent decrease from September and a 25 per cent decrease compared to October 2009. The Board finished October with 9,561 active listings, 4 per cent fewer than in September and an increase of 9 per cent compared to the 8,807 properties available in October 2009.

 

Horn adds, “When supply and demand move into balance, prices can become a real ‘sticking point’ underlining the importance of hiring a professional REALTOR® who knows your local market and can provide detailed comparisons to ensure your home is priced competitively.”

 

The benchmark price for Fraser Valley detached homes in October was $505,759, down 0.3 per cent compared to September and 3 per cent higher compared to $491,128 in October 2009.    

 

The benchmark price of Fraser Valley townhouses in October was $319,058, a 0.9 per cent decrease compared to September and a 2.2 per cent increase compared to October 2009 when it was $312,339.

 

Year-over-year, the benchmark price of apartments increased 0.2 per cent going from $240,048 in October 2009 to $240,542 last month and 0.4 per cent higher compared to September 2010.    

 

Information and photos of all Fraser Valley Real Estate Board listings can be found on the national, public web site www.REALTOR.ca. Further market statistics can be found on the Board’s web page at www.fvreb.bc.ca. The Fraser Valley Real Estate Board is an association of 2,925 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission. 

 

 

 

 

 

 

 

 

 

 

 

FVREB News Sept 20, 2010 

It’s not quite a "tale of two markets," but the differences are apparent when you overlay two graphs from the Fraser Valley Real Estate Board (FVREB) and Real Estate Board of Greater Vancouver (REBGV) showing the ratio of sales to active listings over the past year.

Comparing the volume of sales to available inventory is a common market "barometre" used by industry analysts including senior economists at both the BC Real Estate Association and Canada Mortgage and Housing Corporation. FVREB also features a sales-to-actives graph comparing 10 years of data in our monthly statistical package.

When the ratio of sales to actives is in the range of 18 to 22 per cent, the market is considered balanced. When it starts to rise above 22 per cent, the market is starting to favour sellers and vice versa, buyers are in the driver’s seat when it’s below 18. Of course, there is wiggle room on either side of the balance range.

A member recently posed the question, what does our graph look like for the past 12 months only? We took that suggestion one step further to also compare it to that of Greater Vancouver.

REBGV was in a solid sellers’ market in August and September of 2009, while Fraser Valley was in balanced territory. In November and December, the differences were even more noticeable as Fraser Valley hovered on the brink of a buyers’ market, while conditions in Greater Vancouver still favoured sellers.

Both boards show the same trends of the market slowing at the beginning of 2010 followed by a quick recovery in the spring and then another downturn this past summer. Note that Fraser Valley’s market generally tends to favour buyers except for June of 2010, when the pre-HST rush inched us towards balance again.

Why the differences? Deanna Horn, FVREB President, says, "Although our two markets work in tandem, there are subtleties to each that only REALTORS® would be aware of, underlining the value for members of the public of working with their local REALTOR®."

The two Boards’ market ePolls for the past year show that for REBGV, first-time buyers represent an average of 40 per cent of their market. In Fraser Valley, the average was 32 per cent. People moving from outside Canada represent less than three per cent on average of Fraser Valley’s market, whereas in Greater Vancouver, it’s consistently more than double at seven per cent or higher every month.

Cameron Muir, Chief Economist, BCREA, says, "Canada is an attractive place to buy because of its stability. BC gets the cream of the crop of immigrants in Canada with 55 per cent of investor migrants coming here."

Looking forward, Muir expects to see market improvements on both sides of the Fraser River moving forward towards fall and winter: "The volatility in consumer demand characteristic of the past 24 months is expected to give way to more gradual improvement through 2011."

To read the current BCREA Housing Forecast Update, go to: www.bcrea.bc.ca/economics/HousingForecast.pdf.

 

For immediate release: June 28, 2010
Laurie Dawson 

MAJORITY OF ATTACHED HOMES IN FRASER VALLEY FALL UNDER HST THRESHOLD  

SURREY, BC – The Fraser Valley will offer buyers of new homes noticeable savings after July 1 when the Harmonized Sales Tax (HST) comes into effect, according to the Fraser Valley Real Estate Board.

Deanna Horn, President of the board explains, “Since the majority of new townhomes, apartments, as well as select, new single family homes in our region sell for less than $525,000, the BC new housing rebate threshold in BC, the impact of the new HST will be lessened.”

On July 1, the seven per cent Provincial Sales Tax (PST) will join the five per cent Goods and Services Tax (GST) for a combined HST rate of 12 per cent. The HST will apply to the sale price of all new residential homes however; the BC government will provide a rebate up to a maximum amount of $26,250. According to the provincial government, homes that sell for up to $525,000 will cost the same or less than what they would have when only the GST applied.

“When the HST was first announced, we were concerned for our clients,” explains Horn, who represents nearly 3,000 REALTORS® working in the Fraser Valley.  

“Although the HST impacts new home purchases more dramatically than resale, we’re pleased that through our lobbying efforts alongside other BC housing industry representatives, we were able to convince the government to increase both the threshold for the new housing rebate, and the amount of the rebate itself.  

“The result is that most buyers of new, attached homes and select detached homes in the Fraser Valley will be able to maximize the benefit of the government’s rebate program. Just recently, I was recommending a lovely new, single family home in Cloverdale to one of my clients with an asking price of $519,000. A similar home in other Lower Mainland communities could be considerably higher in price and after July 1, will result in higher taxes because it is above the HST threshold.”

According to Canada Mortgage and Housing Corporation (CMHC), the average price of new townhomes in Surrey in May was $475,154 and in Abbotsford $403,469. The average price of new detached homes in Abbotsford in May was $532,129. CMHC also reports new apartments – 1,000 square feet in size – are selling currently on average for $294,860 in Surrey; $232,800 in Abbotsford; and, $273,880 in Langley.  

The Fraser Valley Real Estate Board is a professional association of 2,989 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.

Is the market reality finally settling in?

For months I have been saying that most of the listing right now are overpriced. This has caused the buyers to pull back and make the market appear to be slowing down. Now it seems alot of sellers that were not very serious and/or are getting frustrated with the lack of activity caused by a swamped inventory are withdrawing from the market. This leaves the more serious sellers who are at or adjusting to fair market value. As you can see from today's FVREB hot sheets below there is almost as many price reductions as new listings, and the average price reduction was approx $15,690!

I would expect to see activity pick up in mid to late July once the HST has been implemented for awhile. Most new developments seem to be including the HST in their prices already so there should be NO downward pressure on the market.

Scott Williams - Fair Realty


FRASER VALLEY REAL ESTATE BOARD
Hot Sheet for June 23, 2010

New Listings: 65

Back On The Market: 5 (colasped sales)

Price Changes: 62 (approx average $15,690)

Listings sold: 35

Excerpts from the FVREB President's Column.


The BC government has raised the Provincial HST new housing rebate threshold to $525,000 from $400,000 AND increase the maximum rebate to $26,250 from $20,000.

What difference does that make? To give you an idea, of the 137 new homes (detached and attached) that sold on Fraser Valley’s MLS® in April (with an age of zero), 22 properties sold for between $400,000 and $525,000 – the average price being $475,658.

If that $475,658 home was new and sold after July 1, under the originally proposed HST regime, families would have paid approximately $3,300 more, but due to the revised threshold and maximum rebate levels REALTORS® lobbied for, they will be saving it instead. Though we didn’t get everything we asked for from the government, saving our clients the value of a couple of mortgage payments was a good first step.

I feel the second key message is almost more important than the first one. Most buyers across the Lower Mainland may not have realized yet that the Fraser Valley will offer consumers noticeable savings when the HST comes into effect because about half of our new homes fall under the BC new housing rebate threshold.

Let me explain. Virtually all new townhomes and apartments in the Fraser Valley sell for less than $525,000. Therefore, the impact of the HST on these real estate transactions will be minimal. However, keep in mind the full 12% HST (as opposed to the current 5% GST) will apply to fees for professional services related to sales of new or existing homes.

In terms of detached homes – most new homes in the Fraser Valley are selling for above the threshold of $525,000. Although, I was just looking at a lovely new detached home in Cloverdale for one of my clients: asking price $499,000 + GST.

Rest assured, homes like this are undoubtedly going to attract even more attention after July 1st and it’s up to our members to promote the fact that in the Fraser Valley many beautiful, new detached homes and an endless supply of new attached homes will be nearly HST-free.

For immediate release: January 5, 2010

YEAR OF THE REAL ESTATE REBOUND FOR FRASER VALLEY

(Surrey, BC) – Results from Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) in

December reflect the real estate story of 2009: recovery.

“In 12 months, we went from the worst January in 20 years to the third best December,” said Paul Penner,

President of the Board. “Home buyers took Boxing Day shopping to new levels with some Fraser Valley

REALTORS® showing multiple homes per day between Christmas and New Years.”

According to Penner, a significant portion of the 148 per cent increase in activity in December’s sales,

1,260 compared to 508 in December 2009, can be attributed to first-time home buyers confident with the

current economic conditions and taking advantage of all-time low interest rates. “An informal poll of our

members in December revealed 40 per cent of home sales were by first-time buyers when it would

normally be in the 25 per cent range.”

The trend overall for 2009 was one of increasing sales, decreasing inventory and prices rebounding. The

Board’s MLS® processed 16,721 sales in 2009, compared to 13,194 the previous year, an increase of 26

per cent. However, it received 15 per cent fewer new listings during the same time period – 30,221 in

2009 compared to 35,651 in 2008. Over the year, the number of active listings for buyers to choose from

dropped by 34 per cent going from 9,960 properties in December 2008 to 6,534 in December 2009.

“We’re seeing the combined effect of fewer homes being listed, which is normal for this time of year, a

flurry of buying activity, plus a decrease in the number of new homes being built. This has put pressure

on prices in the Fraser Valley, particularly on homes in the lower to mid-range markets,” explained

Penner.

The MLSLink Housing Price Index (HPI) benchmark price for detached homes was $497,732 in

December compared to $464,189 in December 2008, an increase of 7.2 per cent. Although prices have

gradually recovered, they have not yet reached the previous benchmark high of $513,798 in May 2008.

The benchmark price of Fraser Valley townhouses in December 2009 was $318,174, a 7.4 per cent

increase compared to $296,296 in December 2008. That price also last peaked at $335,991 in May 2008.

The benchmark price of apartments decreased by 0.3 per cent year-over-year going from $237,786 in

December 2008 to $237,157 in December 2009. It’s previous high was in April 2008, at $260,037.

For Immediate Release:

March 3, 2009 REALTORS® SEE SIGNS OF SPRING IN FRASER VALLEY HOUSING MARKET

(Surrey, BC) – February sales on Fraser Valley’s Multiple Listing Service® (MLS®) experienced a typical ‘early spring’ surge, increasing by 75 per cent in one month from 389 sales in January to 682 last month. However, by historical standards, they continued to refl ect sales levels last seen in the mid-1980s, according to the Fraser Valley Real Estate Board.

Sales showed a 48 per cent decrease compared to the 1,308 sales processed in February 2008. The Board also received fewer new listings last month compared to the same month last year – 2,369 compared to the 2,808 new listings received in February 2008 – however, the total number of active listings at 9,594 was still 11 per cent higher than in January and almost 30 per cent higher than the 7,415 active listings available in February 2008.

Paul Penner, President of the Fraser Valley Real Estate Board explains, “High inventory and low demand over the last few months have created the best buying opportunity since 2006, which buyers started capitalizing on in February.”

Penner feels that though consumers are still cautious about the global economic situation, based on February’s real estate market, he is guardedly optimistic. “For the fi rst time since last September, Fraser Valley REALTORS ® had higher traffi c at open houses, more multiple-offer situations and an increase in home sales.

Click here to view entire stats package

“Because of lower prices and mortgage rates, consumers are gaining confi dence.”

Residential benchmark prices, the value of a ‘typical’ Fraser Valley detached home as determined by the MLSLink® Housing Price Index (HPI), decreased 10.4 per cent compared to February 2008, however, increased from the previous month for the fi rst time in nine months. The benchmark price was $456,683 in February 2009 compared to $509,958 last year.

The HPI benchmark price of Fraser Valley townhouses decreased by 10.5 per cent in one year, going from $330,444 in February 2008 to $295,731 in February 2009, while the benchmark price of apartments decreased by 10 per cent going from $253,351 in February of last year to $228,091 in February 2009.

Click here to view entire stats package

New-home building to take a dive, CMHC says Prices could fall another 10 per cent this year, according to forecast.

BY DERRICK PENNER, VANCOUVER SUN FEBRUARY 20, 2009

The balancing of supply and demand in British Columbia housing markets should result in a 34-per-cent decline in housing starts and a further 10-per-cent slide in home prices, according to Canada Mortgage and Housing Corp.'s latest forecast.

Canada Mortgage and Housing, in a forecast update issued Thursday, called for new-home starts of 22,800 in 2009 down from 34,321 in 2008.

The national housing agency also estimates the average B.C. home price will hit $407,700 in 2009, down from $454,599 in 2008.

Carol Frketich, Canada Mortgage and Housing's regional economist for B.C., said the slowing economy and rising unemployment will lead to weaker demand for housing over the next two years. "We're going to see consumers rein in their spending, and that includes spending on housing," Frketich said in an interview, and builders will slow down construction on new homes as a result. Frketich said the decline in starts will be below the level of construction that would be expected considering B.C.'s population growth and the rate that new households are formed in the province.

Based on that growth, B.C. would expect to see 30,000 to 32,000 new homes built in 2009 if the economy were stronger. "In a period where you have a strong economy and strong job market, which we did see over the last few years, you build above [population] demand," she said. Frketich added that the forecast numbers are still higher than the 15,000 level experienced during the last correction in B.C.'s real estate markets.

Tsur Somerville, director of the centre for urban economics and real estate at the Sauder School of Business at the University of B.C., said B.C. saw a period between 1994 and about 2001 where housing construction didn't keep up population growth and the increase in household formations. "That's why you can have starts be above household growth for a while and not necessarily be overbuilding," he said. However, B.C. built so many new homes in the last few years he thinks there could be room for housing starts to fall further than the Canada Mortgage and Housing forecast.

Thought Frketich's forecast calls for a 34-per-cent decline, Somerville said "that still seems to be closer to the optimistic end of the range," compared with the level of sales in provincial home-resale markets. "Right now, our starts are not as low as they have been in previous downturns," Somerville said. "Yet our sales numbers are dropping off significantly. That seems to suggest start numbers are going to be low for a while." Housing starts trail housing sales, Peter Simpson, CEO of the Greater Vancouver Home Builders Association, said in an interview. So he is not surprised to see expectations for housing construction decline as slower sales spilled from 2008 into 2009.

Simpson said the drop in housing starts will reduce employment in the sector -- from construction sites to the manufacturing plants that produce building supplies. Frketich expects housing markets to balance out in 2010 with the return of some economic strength and as buyers are attracted to the reduced home prices and lower interest rates on mortgages.

© Copyright (c) The Vancouver Sun

New Listings: 66

Price Changes: 47

Sold Listings: 17

News Release: February 3, 2009

January housing sales volume slows to historic levels in Fraser Valley         

(Surrey, BC) – A total of 389 sales were processed through Fraser Valley’s MLS® in January, a decrease of 59 per cent compared to 956 sales in January 2008 and comparable to January sales figures last seen in the early 1980s, according to statistics from Fraser Valley Real Estate Board’s Multiple Listing Service®. 

However, for the fourth month in a row, the Board received fewer new listings.  REALTORS® added 2,003 new listings in January 2009, 30 per cent less compared to the same month last year. This decreased the number of properties available in the Fraser Valley to 8,630, 26 percent higher than January 2008, but 30 percent fewer than the Board’s record high number of active listings in September 2008.

“Those who don’t have to buy right now aren’t and they’re creating tremendous opportunity for those who are house-hunting,” says Kelvin Neufeld, president of the Board. “The ability right now for Fraser Valley REALTORS® to negotiate for their buyers is the strongest it’s been in over a decade.”

Neufeld says if the current imbalance between supply and demand continues to change with the trend moving toward a decrease in homes on the market, buyers will only have this window of opportunity for so long.

“When selection decreases, pricing becomes more competitive,” he says.

Residential benchmark prices, the value of a ‘typical’ Fraser Valley detached home as determined by the MLSLink® Housing Price Index (HPI)*, decreased 9.6 per cent compared to January 2008, the eighth consecutive monthly decline. The benchmark price was $452,145 in January 2009 compared to $500,070 last year. 

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