New Year Brings Strongest January on Record!

SURREY, BC – Fraser Valley’s real estate market showed no signs of slowing down, producing the strongest sales for January on record.

The Fraser Valley Real Estate Board processed 1,338 sales on its Multiple Listing Service® (MLS®) in January, an increase of 57 per cent compared to January 2015 and 13 per cent fewer then were processed in December. Sales in January ranked at the top for the last ten years coming in 57 per cent over the 10‐year average, and 5 per cent higher than the previous record of 1,270 sales in January 1992.

Jorda Maisey, President of the Board said, “Typically, we see January numbers slow down post‐holiday season, but so far demand for Fraser Valley homes hasn’t let up. Homebuyers are reluctant to wait when the market is moving this fast.”

“There are a number of factors we can attribute this jump to, but most importantly, we’re seeing that the demand for owning a home continues to rise and inventory is struggling to keep up. Job creation and a strong BC economy are drawing more people to our region; and despite rising prices in some areas, many communities within the Fraser Valley remain affordable.”

The Board received 2,510 new listings in January, a decrease of 8 per cent compared to January of last year. The total active inventory for January was 4,790, down 34 per cent from last year’s 7,307 active listings.

Maisey explained, “Homeowners may be reluctant to sell because they love their home and where they live. However, for those looking to enter the market and perhaps are waiting for spring, we suggest you and your REALTOR® start planning now. There are a lot of people out there who will want your home.”

Across Fraser Valley, the average number of days to sell a single family detached home in January 2016 was 33 days, compared to 55 days in January 2015.

The MLS® HPI benchmark price of a Fraser Valley single family detached home in January was $691,100, an increase of 20.9 per cent compared to January 2015 when it was $571,700.

In January, the benchmark price of townhouses was $334,400, an increase of 13.8 per cent compared to $293,800 in January 2015. The benchmark price of apartments also increased year‐over‐year by 7.8 per cent, going from $189,500 in January 2015 to $204,300 in January 2016.

Will 2016 be a repeater?

Last year, Fraser Valley REALTORS® experienced the best year in home sales in a decade. Will this year be as good?

In short, no because it's hard to top near record-breaking two years in a row; however, according to the experts, 2016 will be another strong year for Fraser Valley's housing market. This year's market is expected to echo how sales in 2006 and 2007 gradually decreased from 2005's all-time sales high.

In a monthly statistics conference call between FVREB and REBGV officers, BCREA's Chief Economist, Cameron Muir, pointed out that markets historically do not shift quickly, or dramatically "pending an economic shock such as a significant decrease in interest rates."

He has forecast that Fraser Valley's residential MLS® sales will decrease by 8.3 per cent in 2016 compared to 2015, which would result in the Board posting 18,500 sales in total (residential and commercial combined) this year – still 14 per cent higher than the ten-year average.

At Vancouver's CMHC Housing Outlook Conference in November, Market Analyst Richard Sam's forecast echoed BCREA's projecting the same decrease in sales – 8.3 per cent – for the Fraser Valley this year compared to last. Interestingly, CMHC anticipates a 'softer landing' for home sales in the Abbotsford-Mission Central Metropolitan Area (CMA) and is forecasting a decrease of only 2.4 per cent in 2016, so almost as strong a year as last year for our members serving clients further out in the Valley.

One reason for continued strength in sales in Abbotsford/Mission is likely affordability. As FVREB President Jorda Maisey explained to reporters in the Board's December statistics release, "The Fraser Valley has always appealed to consumers looking for competitive pricing and a diverse range of housing options.

"Last year shows that consumers recognize the long-term value of property ownership in the Fraser Valley, particularly valuing the single family home, which they recognize is becoming a limited commodity. Sales of single family detached increased across all of our communities, in some instances more than doubling 2014's sales."

In 2015, the strong demand in our region – and lack of competitively priced inventory – for single family detached homes had a clear impact on prices. In December 2015, MLS® Home Price Index Benchmark prices were up an astounding 17.3 per cent compared to December 2014. Year-over-year, average prices for FVREB detached homes increased by 12.1 per cent. Contrast that to BC's rate of inflation last year, which hovered around 1 per cent.

Economists predict that even though MLS® sales will dip this year, demand for single family homes will remain robust, which will continue to put upward pressure on prices. Muir forecasts the average MLS® price of single family homes in the Fraser Valley will increase by 4.8 per cent in 2016; townhome prices will increase by 3.5 per cent and apartments, 2.6 per cent.

~ Fraser Valley Real Estate Board

Home Owner Grant Threshold Increases in 2016

Ministry of Finance -- British Columbians who own homes valued up to $1.2 million may be eligible to receive a full home owner grant this year, while a partial grant may be available if the home is valued above this threshold.

The home owner grant provides modest property tax relief to those who need it most. Last year, this program returned nearly $800 million to B.C. residents. For 2016, more than 91% of homes are below the threshold.

BC Assessment estimates the values of all homes based on their market value on July 1 each year. For homes valued below the threshold, the basic grant can reduce residential property taxes on an owner’s principal residence by up to $570.

An additional grant up to $275 is available for homeowners who are aged 65 or over, who qualify under the persons with disabilities category, or who are eligible to receive certain war-veteran allowances. The northern and rural home owner benefit provides an additional $200 in property tax relief to households outside the Greater Vancouver, Fraser Valley and Capital Regional Districts.

Low-income homeowners who would have received the additional home owner grant except for the high value of their home can apply for a low-income grant supplement.

Homeowners who face difficulty keeping up with rising property assessments in B.C. may also be eligible to defer all or a portion of their property taxes. The property tax deferment program provides low-interest loans that allow eligible homeowners to defer payment of annual property taxes until their home is sold or becomes part of an estate. This program is available to owners who are 55 or older, surviving spouses of any age, and persons with disabilities. Families who are financially supporting children may also qualify.

https://news.gov.bc.ca/releases/2016FIN0001-000002

Fraser Valley Real Estate in Hot Demand Throughout 2015

SURREY, BC – Fraser Valley real estate experienced its strongest year in a decade in 2015. This was the second highest year for property sales in Fraser Valley’s history, just shy of the region’s previous sales high in 2005.

The Board’s Multiple Listing Service® (MLS®) processed 21,095 sales in 2015, 33 per cent more than the 15,840 sales in 2014, and 0.9 per cent fewer than the 21,282 sales in 2005. The total dollar volume of MLS® sales was a record setting $12.1 billion, four billion more than was sold in 2014.

In contrast, the Board received a typical volume of new listings in 2015 – 30,998 – comparable to the average over the last ten years, set at 31,296 new listings.

Jorda Maisey, President of the Fraser Valley Real Estate Board, attributes 2015’s market strength to a strong economy elevating consumer housing demand. “The Fraser Valley has always appealed to consumers looking for competitive pricing and a diverse range of housing options.

“Last year shows that consumers recognize the long‐term value of property ownership in the Fraser Valley, particularly valuing the single family home, which they recognize is becoming a limited commodity. Sales of single family detached increased across all of our communities, in some instances more than doubling 2014’s sales.”

Sales during December were the highest for that month in Fraser Valley’s history. The Board processed 1,543 sales, an increase of 44 per cent compared to December of 2014. December’s total inventory in the Fraser Valley was 4,280 active listings; 33 per cent fewer than were available in December 2014.

The MLS® Home Price Index benchmark price of a detached home in December was $672,400, an increase of 17.3 per cent compared to December of last year when it was $573,100. The MLS® HPI benchmark price of townhouses increased 9.6 per cent going from $293,500 in December of last year to $321,800 last month. The benchmark price of apartments was $204,900, an increase of 7.3 per cent compared to $191,100 in December 2014.

Maisey adds, “The market remains buoyant, and with very low inventory currently there is tremendous opportunity for sellers. For buyers finding it challenging in their search, REALTORS® are recommending they consider a variety of housing options and communities they may not have considered. There’s a lot of choice out there, you just need to know where to look.”

Feds to tighten mortgage rules for homes over 500k.

What impact do you think this will have in your local market?
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