November 2019 - Fraser Valley Housing Market Statistics

Unusual end-of-year demand for  Fraser Valley real estate SURREY, BC – A combination of unseasonably high demand and declining supply  reinforced Fraser Valley’s real estate market in November. The Fraser Valley Real Estate Board processed 1,405 sales of all property types  on its Multiple Listing Service® (MLS®) in November, an 11.7 per cent decrease  compared to sales in October 2019, and a 36.7 per cent increase compared to the  1,028 sales in November of last year. Darin Germyn, President of the Board, says, "Some listings are seeing a lot of   activity depending on location and property type. REALTORS® are reporting   more showings, higher traffic at open houses and even some multiple offer   situations, which is atypical for the time of year. "For our region, a balanced market is when 12 to 20 per cent of active inventory  is selling. In November, 33 per cent of our supply of townhomes sold, as did  29 per cent of Fraser Valley condos; indicating that the supply of attached  properties isn’t keeping up with demand." There were 6,733 active listings available in the Fraser Valley at the end of   November, a decrease of 8.5 per cent compared to November of last year and  a decrease of 9 per cent compared to October 2019. The Board received  1,877 new listings in November, a 21.2 per cent decrease compared to  October 2019’s intake of 2,383 new listings and a 9.6 per cent decrease  compared to November of last year. Germyn adds, "Buyers are seeing the effect that tighter supply has on prices.  In early summer, the combined residential benchmark price was down 6 per  cent compared to the same period last year; in November it was down by  3 per cent." MLS® HPI Benchmark Price Activity Single Family Detached: At $952,200, the Benchmark price for a single-family detached home in the Fraser Valley remained unchanged compared to October 2019 and decreased 2.5 per cent compared to November 2018. Townhomes: At $514,700 the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 0.3 per cent compared to October 2019 and decreased 3.4 per cent compared to November 2018. Apartments: At $404,500, the Benchmark price for apartments/condos in the Fraser Valley decreased 0.1 per cent compared to October 2019 and decreased 4.3 per cent compared to November 2018. For the Fraser Valley region, the average number of days to sell an apartment  in November was 40, and 38 for townhomes. Single family detached homes  remained on the market for an average of 48 days before selling. For the FULL Statistics Package, click HERE Visit our Web Site HERE Know someone moving ANYWHERE in the WORLD? Call me today--I know the BEST agents everywhere!! Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD! Office Phone: 604-743-7653

2019 Christmas Parade's & Shows!

✨ 2019 🎄Christmas 🎄 Parade's & Shows! ✨

The Fraser Valley and surrounding area's are gearing up for some Holiday Spirit FUN! 🎅⛄️🎄

Here is a list of the upcoming parades and or shows that are in your neighborhoods!

Langley: Saturday December 7th, 2019

https://city.langley.bc.ca/parks-recreation/community-events/magic-christmas

Aldergrove: Saturday December 14th, 2019

https://aldergrovefair.ca/parades/christmas-light-up-parade/

Cloverdale: Sunday December 1st, 2019

https://www.surreysantaparade.com/

Abbotsford: Nov 30 & Dec 7th & Dec 14th Shows

http://highstreetfv.com/happening/tree-lighting-holiday-shows/

Mission: Friday December 6th, 2019

https://www.starfm.com/events/mission-candlelight-parade-2019/

Chilliwack: Saturday December 7th, 2019

https://www.familyfuncanada.com/vancouver/rotary-christmas-parade-chilliwack/

Vancouver: Sunday December 1st, 2019

https://vancouversantaclausparade.com/

How To Make An Offer On A House...?

There’s one thing every homebuyer has in common, regardless of the city they’re buying in, the market conditions or the type of property – you have to make an offer. Whether you’re still in the browsing stages of the home hunt, or you’ve started to put your plan into action, prospective buyers would be wise to do some legwork and gain insight on how to make an offer on a house. While your real estate agent is there to guide you, the more you know about the home-buying process, the smoother it will be.

How to make an offer on a house

The Paperwork:

When you’re ready to make on offer on a house, your agent will draw up the necessary paperwork. In order to be valid, your offer documents much include some specific details, according to Canada Mortgage and Housing Corp.:

• your legal name, the name of the seller and the address of the property
• the amount you’re offering to pay (the purchase price) and the amount of your deposit
• inclusions and exclusions (for example, are the window coverings included in the purchase?)
• the date you want to take possession (“closing day”)
• a request for a current land survey
• the date the offer expires
• any other conditions that must be met before the contract is finalized (for example, a satisfactory home inspection)

The Price:

When making an offer on a house, be prepared to negotiate. Your negotiating power will depend on a few factors. The current market conditions in the immediate neighbourhood will dictate whether you can make a lowball offer – a likely scenario in a buyer’s market – or perhaps an offer that’s higher than the asking price, which can happen in a seller’s market. The demand for homes in the area, amount of housing inventory and the number of days on market will impact the type of market you’re in.

Deposit:

While the terms “deposit” and “down payment” are often used interchangeably, they are different. At the time of the offer, the buyer should come prepared to make a deposit on the home they hope to buy. The deposit will be rolled in with your down payment, and shows the seller that you’re serious about buying the home and have your finances in order. If the buyer walks away from the deal, in most cases he or she will forfeit their deposit.

There’s no standard deposit amount. It will vary based on the type of property and how badly the buyer wants this particular home. The way the deposit is handles also varies by province, but it’s generally given to the seller’s agent, to be held is trust until the deal is firm.

Down Payment:

Unless you’re planning to pay cash for the house, you’ll need to secure financing.  The minimum down payment in Canada is five per cent. It’s a good idea to get pre-approved for a mortgage. In case you have to move quickly with your offer, you’ll be ready in terms of your financing. As a buyer, you’ll know exactly how much you can spend, and the seller also wants the reassurance that you will not back out of the purchase based on financing.

Firm versus Conditional Offer:

Your offer to purchase a home can be firm, meaning it has no conditions attached to it. On the other hand, a conditional offer means that in order for the offer to be valid, certain terms must be met. Some common conditions include:

• Purchase conditional on financing: This is a common condition for first-time homebuyers making an offer on a house, and it requires the sign-off of the mortgage lender in order for the deal to go through. The buyer will have a few days to get this, and the process will include a home appraisal. If the lender does not agree to finance the property, the buyer will notify the seller and the offer becomes null and void.
• Purchase conditional on home inspection: A home is likely the biggest purchase you’ll make in your lifetime, so it’s always recommended that the offer be conditional on a satisfactory home inspection. A professional home inspector will look at things in and around the home that are openly visible (that’s right, he or she will not be opening up walls or floors). The inspector will examine things like the structure, roof, plumbing, heating and electrical systems, to ensure the house is in good condition. If the home isn’t up to par, this condition allows the buyer to return to the seller and request repairs, a reduction in the price, or can rescind the offer entirely.
• Purchase conditional on the sale of a home: If a prospective homebuyer already owns a home, he or she may want to ensure that it is sold before agreeing to purchase a new property. This isn’t ideal for the seller, as every condition has a potential domino effect.

A firm offer is common in a hot market. With all other things being equal, a seller is more likely to accept the unconditional offer over one that could potentially fall through for a number of reasons.

Negotiations:

There could be room to negotiate a lower price on the property that you’re eyeing, but remember that negotiating doesn’t stop at price. You can also try for more favourable terms as part of your purchase agreement, such as repairs, inclusions, and a longer or shorter closing date.

An experienced real estate agent will be able to advise you on what you can realistically negotiate, depending on the market conditions. In a buyer’s market, you hold the cards knowing that there are plenty of other options on the market. In a seller’s market, you’re in competition with other buyers vying for the same property, so quick action and a strong offer are more likely to work in your favour.

Legal:

Your offer is a legal document, so ensure you read and understand everything outlined in the paperwork. The buyer has the option to take the offer to a lawyer for review prior to signing anything. And remember, if you don’t understand it, don’t sign it.

Buying a home is a big deal, from the shopping and vetting process, to the financial and emotional commitment you’re about to make. The offer is also a legally binding document. All your questions around how to make an offer on a house are valid, as these seemingly small details will have a domino effect throughout the rest of the purchasing process and even long after you’ve taken possession. Work with an experienced real estate agent and a good real estate lawyer to ensure your best interests come first.

Visit us on our web site for more great buying and selling tools and tips! www.gelderman.ca

Know someone moving ANYWHERE in the WORLD? Call us today--we know the BEST agents everywhere!!

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

Office Phone: 604-743-7653

Fraser Valley Housing Market Statistics - October 2019

Real estate rebound continues 

for Fraser Valley

SURREY, BC – The demand for Fraser Valley real estate is the strongest it's been since the spring of 2018. The Fraser Valley Real Estate Board processed 1,592 sales of all property types on its Multiple Listing Service® (MLS®) in October, a 18.5 per cent increase compared to sales in September 2019, and a 37.8 per cent increase compared to the 1,155 sales in October of last year. Darin Germyn, President of the Board, says, "Our market started to pick up in the summer and we've been steadily improving since. It's rare to see October home sales in the Fraser Valley outpace April and that's what we've seen this year; our typical spring and fall markets have flipped. "Consumers are feeling more confident. Buyers have grown accustomed to the government's regulation changes. Interest rates have thankfully remained stable and we're likely seeing some pent-up demand from buyers who were holding off earlier this year. October's beautiful, sunny weather didn't hurt either." There were 7,398 active listings available in the Fraser Valley at the end of October, a decrease of 4.5 per cent compared to October of last year and a decrease of 6.9 per cent compared to September 2019. The Board received 2,383 new listings in October, a 13.9 per cent decrease compared to September 2019's intake of 2,769 new listings and a 14.2 per cent decrease compared to October of last year.   Germyn adds, "We're still seeing some hesitation from sellers to list as they continue to watch for further price erosion, however, it's important to talk to your local market expert because prices in some areas have turned the corner and are starting to creep up again." MLS® HPI Benchmark Price Activity Single Family Detached: At $952,600, the Benchmark price for a single-family detachedhome in the Fraser Valley increased 0.3 per cent compared to September 2019 and decreased 3.5 per cent compared to October 2018. Townhomes: At $516,000 the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 0.8 per cent compared to September 2019 and decreased 4.2 per cent compared to October 2018. Apartments: At $405,100, the Benchmark price for apartments/condos in the Fraser Valley decreased 0.1 per cent compared to September 2019 and decreased 6.4 per cent compared to October 2018. For the Fraser Valley region, the average number of days to sell an apartment in October was 34, and 37 for townhomes. Single family detached homes remained on the market for an average of 46 days before selling.

For the full October Statistics Package click HERE

Office Phone: 604-743-7653

RE/MAX affiliates raised $100,000 for Children’s Miracle Network during Activate 2019 Conference

RE/MAX affiliates raised $100,000 for Children’s Miracle Network during Activate 2019 Conference

RE/MAX of Western Canada hosted the RE/MAX Annual Canadian Conference and raised $100,000 for Children’s Miracle Network in support of local Children’s Hospitals in 24 hours during the three day event, October 23-25, 2019 held at the Fairmont Banff Springs, Banff, AB.  The conference was attended by over 800 RE/MAX agents, owners and managers from across Canada and the US.

Several fundraising initiatives occurred during the conference which included; silent auction, live auction, raffle for a trip for two to Maui, Flip for Kids Coin Toss, as well as a number of other organized initiatives by the attendees. Collectively these fundraising events raised $95,180 for Children’s Miracle Network member hospitals. However, prior to the announcement of the amount raised, an agent and long-time supporter of Children’s Miracle Network made a donation in memory of his mother who was an RE/MAX agent for over 20 years, to bring the fundraising total to $100,000! This is just one example how RE/MAX agents put their money where the miracles are!

“Reaching this $100,000 milestone would not be possible without the generosity of our wonderful agents, brokers and managers. I am honoured to be affiliated with such amazing people that care so much about the health and well being of children.  Their donations, bids and other fundraising efforts are making a difference,” Marie Sheppy, Manager, Corporate Affairs, RE/MAX of Western Canada. “If we can change kids’ health, we can change the future!”

Since becoming a Children’s Miracle Network sponsor in 1992, RE/MAX affiliates in Canada have donated over $72 million, these funds are vital in treating the 2.3 million children that visit a children’s hospital in Canada every year. Many funds raised by RE/MAX is through the RE/MAX Miracle Home Program, RE/MAX agents donate a portion of their income from each home sale.  These donations help fund paediatric medical equipment and treatments, as well as other healthcare services.

About RE/MAX Canada

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 125,000 agents provide RE/MAX a global reach of more than 110 countries and territories. RE/MAX is Canada’s leading real estate organization with more than 21,000 Sales Associates and over 922 independently-owned and operated offices nationwide. RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a subsidiary of RE/MAX Holdings, Inc. (NYSE:RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children’s Miracle Network Hospitals® and other charities. For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

Visit our web site: www.Gelderman.ca

Know someone moving ANYWHERE in the WORLD? Call me today--I know the BEST agents everywhere!!

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

Office Phone: 604-743-7653

Breaking Down the Housing Debate

Everything you need to know ahead of the 

2019 Federal Election

The 2019 federal election is fast approaching, and the housing debate continues to be a hot topic in the country. A national housing strategy that’s assessed annually and updated based on economic markers and buying trends is crucial to the longevity of Canada’s housing market.

Over the last year and half, real estate has made headlines: interest rates, high home prices, affordable housing strategies, and government intervention with new regulations such as the mortgage stress test.

Many Canadians, especially millennials, new immigrants and those employed in the so-called “gig economy” feel home ownership is becoming less tangible by the day. While politicians of all stripes acknowledge the mounting urgency of affordable housing, few are offering any timely or compelling solutions.

To-date, Canada’s housing affordability issue remains rampant. The government has made efforts to help Canadians effectively manage their household debt as a way to improve affordability, with the mortgage stress test, which I am 100 per cent supportive of – but the stress test has done more harm than good and is simply unrealistic based on economic forecasts.

As a country, we must incentivize and support homebuyers – especially first timers who are currently precluded from entering the housing market. We can’t let policies become barriers to the Canadian dream. We need a strategy to resolve our housing challenges in the long-term versus Band-Aid solutions to appease political agendas in the short-term.

To this end, it’s important that voters consider the different viewpoints of the parties as well as their own, as they prepare to cast their vote on October 21. Here’s an overview of the biggest housing hurdles to be addressed, as well as the party positions thus far.

Housing affordability and cost of living are among voters’ top concerns, making this the number-one focus for all party candidates in the 2019 Federal Election. Canadians seek a government that will address their housing concerns and prioritize the health of our economy. As election day nears, I encourage Canadian voters to educate themselves on the issues, and consider their candidates’ answers to these questions, to help inform their decisions:

1. How will you address the mortgage stress test to ensure it effectively addresses housing affordability?
2. How will you encourage millennials and first-time homebuyers to purchase homes?
3. What’s the plan to create more affordable housing across the country – particularly in hot markets such as Toronto and Vancouver?

Housing debate topics up for discussion – and action

HOUSING SHORTAGE

Between the lack of rental housing, supply of affordable housing and less incentive for developers to build more, Canada is experiencing a serious housing shortage. This is particularly true in our two biggest markets, Vancouver and Toronto, where the average cost of living continues to tick upward, and residents are left scrambling for affordable alternatives. Candidates must explore solutions that incentivize developers to produce more supply, but also provide options to citizens that enable them to purchase homes more easily and affordably.

SHORT-TERM RENTALS

Short-term rentals have removed approximately 31,000 spaces from the rental market, having a big impact on the long-term supply. While Canadians struggle to purchase affordable homes, they also struggle to find housing alternatives in the short-term, with the average one-bedroom in Toronto costing $534,349. This trend is not going away and must be addressed at the federal level now. From an investor standpoint, short-term rentals make sense, but in the context of liveability and neighbourhood dynamism, they pose many challenges for Canadians who looking for a place to call “home.” Governments need to consider regulation to ensure both stakeholders are well taken care of, and that the issues of both parties are addressed appropriately and effectively.

MORGAGE STRESS TEST

Homebuyers deserve an opportunity to climb the property ladder as much as previous generations, but the mortgage stress test in its current form is an obstacle in what has become a far-fetched dream. I am 100 per cent supportive of responsible debt levels and policies to ensure that goal, but let’s be realistic. Even with the recent modifications to the mortgage stress test, it still isn’t solving the affordability crisis in our country. Quite simply, the circumstances under which the stress test was first introduced are no longer a reality. As we look toward October’s election, it’s crucial to consider how government intervention might help or hinder Canada’s housing market. At the very least, Canada’s next government needs to reassess the stress test.

Every party has made plans and promises in the great housing debate. Will it be enough?

Justin Trudeau’s Liberals1

On the Mortgage Stress Test:

• Undertake a review of escalating home prices in high-priced markets – like Vancouver and Toronto – to determine whether speculation is driving up the cost of housing.
• Increased the amount first-time buyers can withdraw from their RRSP’s to $35,000 from $25,000 in budget 2019
• Earmarked $1.25 billion over the next three years for First-Time Homebuyers’ Incentive (which launched September 2, 2019)6
• On September 12, 2019, promised an expansion of the First-Time Home Buyer Incentive (FTHBI) program to cover home values up to $789,000 in hot markets of Toronto, Vancouver and Victoria if elected.7
• Up to $40,000 in interest-free loans for renovations to improve energy efficiency of homes. Grants of up to $5,000 to those buying zero-emissions new homes.
• Addressing house-price inflation with a one-per-cent annual vacancy and speculation tax on homes held by non-residents or non-Canadians.

On Short-Term rentals:

• Increase the new residential rental property rebate on the GST to 100 per cent, eliminating all GST on new capital investments in affordable rental housing.

On the Housing Shortage:

• Provide $125 million per year in tax incentives to increase and substantially renovate the supply of rental housing across Canada.
• As part of a new, 10-year investment of nearly $20 billion in social infrastructure, prioritize significant new investment in affordable housing and seniors’ facilities.

Andrew Sheer’s Conservatives

On the Mortgage Stress Test:

• Promised to scrap the tests on mortgage switches and consider additional measures that will improve housing affordability.2
• Criticized the Liberals’ Carbon Tax, claiming that it will further erode affordability/cost of living, pushing the dream of home ownership even farther.3

On the Housing Shortage:

• Will help get new homes built across Canada, addressing housing shortages and affordability issues by cutting red tape, shortening timelines and bringing down costs. 3

Jagmeet Singh’s NDPs

On the Mortgage Stress Test:

• Double the homebuyer’s tax credit to $1,500 for first-time buyers.
• Re-introduce 30-year terms to Canada Mortgage and Housing Corporation (CMHC) insured mortgages for first-time homebuyers.

On Short-Term rentals:

• Remove GST/HST on the construction of new rental units.

On the Housing Shortage:

• Create 500,000 units of quality, affordable housing in the next 10 years.

Elizabeth May’s Green Party

On the Housing Shortage:

• New developments will have a minimum of 20 per cent affordable homes.
• Push for innovative solutions such as “tiny homes,” laneway housing, co-housing and secondary suites.
• Invest an additional $200 million over projected increases in the 2018 budget in funding for shelters, social, co-op and supportive housing.

Real estate continues to be one of the safest and most reliable financial investments for Canadians. As real estate professionals, it’s our duty to help potential homebuyers navigate this tricky landscape and support them in determining their best options. We urge governments to develop a national housing strategy that addresses all issues relating to affordability, or risk pushing the Canadian dream of home ownership that much farther away for all.

Sources:
1 Our plan for affordable housing, liberal.ca
2 Conservative leader vows to end stress test on mortgage switches, whichmortgage.ca
3 Scheer says we are in a cost-of-living crunch, stcatharinesstandard.ca
4 2019 federal election platform guide: Where parties stand on everything, macleans.ca
5 Our platform, gpo.ca
6 2019 federal election platform tracker: Where the major parties stand so far, bnnbloomberg.ca
7 Trudeau Liberals promise to expand first-time homebuyers program if elected, globalnews.ca

Visit our web site HERE www.gelderman.ca

Know someone moving ANYWHERE in the WORLD? 

Call us today--We know the BEST agents everywhere!!

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

Office Phone: 604-743-7653