What You Should Know about the Fall Real Estate Market

What You Should Know about the Fall Real Estate Market

As Canadians prepare for the busy fall real estate market ahead, the decision on whether to buy or sell a home this year will be mired in more than the typical uncertainties that come with a transaction of this magnitude. Housing affordability, interest rates and the mortgage stress test were big newsmakers in 2018 and 2019, and will continue to make headlines for at least another six weeks, with the looming federal election on October 21, and lots of housing issues and policies up for debate between now and then.

So, what can consumers expect from fall real estate? Those seeking a long-range forecast will have to wait at least until election day and likely well beyond, to see what party takes power, which policies they move ahead with and how these changes play out in real time. Uncertainties aside, here’s what we do know:

Canadian homebuyers seem to be getting used to the new mortgage rules, and there have been some important changes at the federal level that are expected to impact homebuyers and in turn, home sellers:

• The mortgage stress test qualification bar was recently lowered from 5.34 to 5.19 per cent, increasing purchasing power – albeit only slightly.
• The First Time Home Buyer Incentive (FTHBI) took effect on September 2, whereby eligible first-timers can get a shared-equity government loan to help with the down payment.
• The Home Buyers’ Plan (HBP) withdrawal limit was increased from $25,000 to $35,000, toward the purchase of a first home.
• Rumours of interest rate drops are circulating. The Bank of Canada’s interest rate announcements are a trending topic worth watching every six weeks.

Beyond these factors, fall real estate does experience some seasonal effects. For home sellers, the yet-favourable weather draws crowds to open houses, and many homebuyers experience FOMO (fear of missing out) at the prospect that their days are numbered before the typical winter lull in listings. This often results in increased activity.

However, this habitual seasonality is at the mercy of market conditions, which will have a greater effect on the upcoming fall real estate market than solely the time of year. Is it a buyer’s market or a seller’s market? Demand will be the biggest factor in the buyer’s and seller’s bottom line.

Homebuyers and sellers need to remember that all housing markets are local, and it’s more important than ever to tap into the ground-level expertise of a professional real estate agent, who can best advise you on market trends, and counsel you on the timing of the transaction, and the price.

Buying or selling a home is probably the biggest transaction you’ll make in your lifetime. Don’t leave anything to chance. RE/MAX is the most widely recognized real estate brand in the world, and for more than 20 years it has been the leading real estate organization in Canada. By receiving the best training, administrative and marketing support for the RE/MAX network, brokers and agents can focus on what matters most: real estate.

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Fraser Valley housing market continues to stabilize...

Fraser Valley housing market continues to stabilize as sales pick up compared to last year

For the second month in a row, home sales in the Fraser Valley surpassed 2018  levels bringing the market closer to historical norms. The Fraser Valley Real  Estate Board processed 1,297 sales of all property types on its Multiple Listing  Service® (MLS®) in August, an 11 per cent decrease compared to sales in July  2019, and a 12.3 per cent increase compared to the 1,155 sales in August of last  year. Darin Germyn, President of the Board, observed, "Compared to last year, this  August has been quite robust. All property types are selling and we're seeing  a resurgence in the single-family detached market. Across North Delta, Surrey   and Langley, sales are up over 25 per cent."   "It's great to see. We're returning to a normal, steady market. Our sales, new  listings and number of active listings in August were all slightly below the  10-year average."   There were 8,040 active listings available in the Fraser Valley at the end of   August, an increase of 9.6 per cent compared to August of last year and a   decrease of 3.6 per cent compared to July 2019. The Board received 2,357  new listings in August, a 15.7 per cent decrease compared to July 2019's  intake of 2,797 new listings and an 8.5 per cent decrease compared to  August of last year.   Germyn adds, "Inventory has stopped growing as demand has picked up, which  is why we're also seeing prices moderate. Last month, prices of typical homes  in the Fraser Valley were on par with prices from six months ago." HPI® Benchmark Price Activity Single Family Detached: At $954,100, the Benchmark price for a single-family detached home in the Fraser Valley decreased 0.3 per cent compared to July 2019 and decreased 5.4 per cent compared to August 2018. Townhomes: At $521,400, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley increased 0.1 per cent compared to July 2019 and decreased 4.9 per cent compared to August 2018. Apartments: At $409,200, the Benchmark price for apartments/condos in the Fraser Valley decreased 0.1 per cent compared to July 2019 and decreased 7.7 per cent compared to August 2018. For the Fraser Valley region, the average number of days to sell an apartment in August was 45, and 36 for townhomes. Single family detached homes remained on the market for an average of 44 days before selling. For the FULL latest Statistics Package click HERE Visit our web site for more great information, and to  view our Team Listings 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

Should You Buy Real Estate in Vancouver?

Should You Buy Real Estate in Vancouver?

Vancouver is located in the balmy Lower Mainland of British Columbia. It has the highest population for the province, but even at 600,000 people, that is still far less than most major urban centres. As a coastal seaport city, it has warmer year-round temperatures than the rest of Canada as well as stunning land, sea, and mountain views that are hard to find anywhere else.

All of this makes it ideally situated for those who want an urban life close to outdoor activities. So, should you buy real estate in Vancouver?

Livability

Vancouver ranks high when it comes to livability. Many of the preferred neighbourhoods such as the West End, Kerrisdale, and Main offer excellent amenities like retail and restaurants. They are also close to parks and have excellent walkability ratings. If you don’t want to walk, there is also easy access to public transit.

When buying a home, Vancouver ranks high for the following livability factors:

• Transit
• Green space and parks
• Schools
• Biking and walkability

It ranks medium for:

• Employment opportunities
• Shopping
• Economic development
• Medical care

Of course, it is ranked low for housing affordability, but that is no surprise.

The Market

Buying a single-family house in the City of Vancouver market is unreachable for most people, according to MoneySense. However, if the average detached house price of $1.7 million is within your budget, now could be an excellent time to buy as price drops are happening.

MoneySense reported home sales dropped to a 20-year low in April 2019, according to the Real Estate Board of Greater Vancouver (REBGV). A slowdown in sales and an increase in inventory is seeing real estate housing prices for detached homes at the lowest since 2016. When you compare the home prices in East and West Vancouver, the benchmark for a detached house in the east is down 12.1% at $1,357,200, while the west is down 13.4% but still sits at a whopping $2,948,400. This translates into a decrease between $177,000 to almost $500,000 from 2018.

However, according to Vancouver Courier, the benchmark price in June for all property types combined finally slipped below the $1 million to $998,700, a 9.6% decrease from June 2018. This is the first time since May 2017 that the price has been below $1 million.

Condos in Vancouver

Vancouver Courier also reported that condo sales in Metro Vancouver are seeing an acute decline, with total condo sales in June at 941 units. That marks a 24.1% decrease from 2018. As well, the benchmark price for a Metro Vancouver condo is 8.9% lower from June of last year and 1.4% lower than May 2019. The average condo price is currently sitting at $654,700.

The Millennial Element

Millennials make up the largest home-buying population. With this in mind, many sellers are trying to target millennials with their marketing approach. In Vancouver, things can get pretty competitive, so having a selling strategy can be helpful.

For millennials, these condo prices certainly work out in their favour. Since millennials are the most dominant demographic in Vancouver, if you are in this age group, you might look to the condo market for your first home.

Condos tend to offer a more tech-friendly and environmentally conscious option as well. Some of the things that might attract millennials to Vancouver condos would include:

• Green, energy-efficient homes: The green home is a must for a generation who is very concerned about the climate crisis. Condos offer a reduced ecological footprint in hand with improved insulation, efficient lighting, and updated plumbing systems.
• Smart, connected homes: Smart homes are becoming more common in condos, including light controls, home security systems, and smart thermostats.
• Entertaining spaces: Open, usable spaces are ideal for entertaining, not to mention a stunning waterfront view. This, of course, can up the price tag.
• The neighbourhood: Vancouver areas can be closer to work, green spaces, and parks.

All of these reasons, along with decreasing prices, point at condos as a more realistic option for first-time buyers in the Vancouver housing market regardless of age.

Best Vancouver Areas

The best places to live in Vancouver, include hidden gems Main, Mount Pleasant, Downtown Vancouver West, as well as Renfrew-Collingwood. They offer great neighbourhoods, a stable supply of housing inventory, and affordable prices.

According to MoneySense, the three hottest neighbourhoods in Vancouver are:

1. Marpole

This area offers the best value much because it is still transitioning. So, you can still get in on the ground floor while the neighbourhood gentrifies. It could take another five years or so before it has the amenities you expect, but its potential alone makes the area a good choice for buyers. Although there are better areas, you’ll pay 25% less for the average-priced home compared to most Vancouver West areas. In the past five years alone, properties have soared in value by 116%.

2. Kitsilano

If you are set on living in Vancouver West, Kitsilano is another option. You’ll be looking at a much higher price tag with a 2018 average price of $2,615,000. However, you get what you pay for: a far better sense of community than Marpole in hand with diversity for shopping and dining, an easy commute, and good walkability. It is also close to the beach and offers mature trees and well-maintained gardens.

3. Knight

This South Vancouver area flanks Knight Street from 16th Street in the north and either 49th or 54th Street in the south. Homes here are more affordable at $1.6 million. It is diverse with culture and in mid-gentrification. However, if you are not a fan of the box-like houses built between the mid-60s to mid-80s, you may not be happy here. There will be the odd custom-build or townhome available, but for the most part, you’re looking at the “Vancouver Special” as the most common find.

These homes tend to need some love, which can offset the price. The area does offer an easy commute to downtown Vancouver. It might be a DIYers dream, or you can add renos into the math to get a more realistic look at the true price. As a bonus, there are growing amenities, including a relatively new community centre to meet the needs of this family-oriented area.

Vancouver is a pricey area, but buyers will always have their sights set on it. Condos and the less-developed communities could offer opportunities for some buyers to get their foot in the door of the Vancouver real estate market. A real estate agent can help you navigate the market to find the best bet for your budget.

Buying or selling a home is likely the largest and most important transaction you’ll ever make. That’s why so many trust RE/MAX: the most widely recognized real estate brand in the world. For more than 20 years, RE/MAX has been the leading real estate organization in Canada. By providing the best training, administrative and marketing support, brokers and agents are free to focus on what they do best: sell real estate.

Visit our Web Site HERE www.gelderman.ca

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Fraser Valley Housing Market Statistics - July 2019

Fraser Valley home sales rebound in July after lackluster June

A noticeable lift in home sales and slight decrease in new listings bolstered the  Fraser Valley housing market in July. The Fraser Valley Real Estate Board processed 1,458 sales of all property types  on its Multiple Listing Service® (MLS®) in July, a 11.6 per cent increase  compared to sales in June 2019, and a 13 per cent increase compared to the  1,290 sales in July of last year. Chris Shields, President-Elect of the Board, observed, "We've been expecting  market improvement, but didn't quite anticipate July's momentum. We've gone  from the worst June in almost 20 years to a July that's only slightly below the  10-year average. For both buyers and sellers, a return to an active, more  balanced market is welcome news." "We attribute the change in July to pent-up demand and an increase in consumer confidence. REALTORS® in our market saw more activity at open houses and  an increase in the number of first-time buyers. Data from our informal member  market poll in July showed the highest level of first-time buyer purchases in the  Fraser Valley since early 2016." There were 8,340 active listings available in the Fraser Valley at the end of July,  an increase of 12.7 per cent compared to July of last year and a decrease of  2.1 per cent compared to June 2019. The Board received 2,797 new listings in  July, a 0.5 per cent decrease compared to June 2019's intake of 2,810 new  listings and a 4.2 per cent decrease compared to July of last year. "Sales of single family detached in our region increased by over 18 per cent in  July compared to last year," added Shields. "Sellers are now recognizing that  although listing prices are down, it's also now more affordable to buy." HPI® Benchmark Price Activity Single Family Detached: At $957,400, the Benchmark price for a single-family detached home in the Fraser Valley decreased 0.3 per cent compared to June 2019 and decreased 6.3 per cent compared to July 2018.  Townhomes: At $520,700, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 0.9 per cent compared to June 2019 and decreased 6.6 per cent compared to July 2018.  Apartments: At $409,700, the Benchmark price for apartments/condos in the Fraser Valley remained unchanged compared to June 2019 and decreased 9 per cent compared to July 2018. Full package: http://www.fvreb.bc.ca/statistics/Package201907.pdf Visit out TEAM web site HERE 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

Cabin & Cottage Trends Across Canada

Cabin & Cottage Trends Across Canada

Recreational housing market shows strong gains

Strong economy, demographics and the affordability squeeze in large urban centres driving demand

A new survey of RE/MAX brokers and agents has found that recreational properties across Canada are seeing a healthy year-over-year price increase, with 74 per cent of regions surveyed experiencing an uptick.

Compared to 2018, the median price of recreational properties, including waterfront, non-waterfront, water access and ski-in properties, has increased seven per cent across the board. Median prices were calculated for the periods of July 2017 to June 2018, and July 2018 to June 2019.  

“In the mainstream urban housing market, we’re seeing a marked contrast between Eastern and Western Canada, with the former showing promising gains while the latter is flat to negative. Meanwhile, the recreational market is strong across much of the country except in the Prairies, where the region’s softer economy has kept demand low,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada.

“And ultimately the reasons for the contrast between urban and recreational markets are diverse,” adds Alexander. “Activity is being driven by strong employment and economic conditions, but it’s also being influenced by Millennial buyers who find themselves squeezed out of the less affordable urban market.”

A RE/MAX survey conducted in the spring showed that 56 per cent of Canadian Millennials are in the market to purchase a recreational property, an increase of 14 per cent from 2018.

Overall, British Columbia saw prices rise eight per cent, with Tofino leading the charge with a median price increase of 35 per cent, with waterfront property prices up a staggering 80 per cent. The increase is due to low inventory in the area. Shuswap took second place in median price growth, rising by 25 per cent.   

The Prairies, however, are experiencing a decline, with year-over-year prices taking a three per cent hit. The median price for waterfront, non-waterfront and water access properties in North Battleford and Meadow Lake, SK dropped by 10 per cent. Teulon and Interlake, MB, also saw an 11 per cent decline in median price. Economic factors in the region have contributed to the decrease. Bucking the trend in the Prairies are Canmore, AB and Qu’appelle Valley, SK, which have both seen median prices increase by six per cent.

“There is little doubt that economic factors in the Prairies have affected demand in the recreational market,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “At the same time, BC’s economy is still going strong and has experienced an increased interest in its recreational market in recent times.”

Like British Columbia, Ontario saw an overall increase of eight per cent, with the median price for water-access properties in areas such as Collingwood and Blue Mountain increasing as much as 36 per cent. Additionally, waterfront properties in Haliburton saw a price increase of 29 per cent. The only regions that showed a decrease in median price are Manitoulin Island, French River and the Rideau Lakes Region.

Atlantic Canada also showed a marked increase in median price, rising seven per cent over 2018 figures and well above the 0.13 per cent price increase between 2017 and 2018. The strongest market is Prince Edward Island, where median price rose by 15 per cent overall for both waterfront and non-waterfront properties. Shediac, NB and Newfoundland’s East Coast each experienced an eight-per-cent increase in median price as well.

“Prince Edward Island has experienced a growing popularity of investment properties,” says Alexander. “The influx of non-residents to the province has had a tremendous effect, with some purchasing upwards of six recreational properties and renting them out during tourist season.”

Nationally, the median price for ski-in properties has increased by 10 per cent compared to 2018. Waterfront properties come in at a close second, rising nine per cent. No property type experienced a decline in median price compared to 2018. 

RE/MAX brokers foresee current trends continuing into 2020, with Millennials starting to exercise more purchasing power. The Prairies will remain relatively stagnant if the economy does not pick up, making it difficult for younger buyers to enter the market. Ontario brokers see a mix of demographics continuing to purchase in the region while recreational properties in Atlantic Canada continue to gain in popularity.

REGIONAL HIGHLIGHTS

BRITISH COLUMBIA

Ucluelet & Tofino, B.C.
Inventory for all property types remains low and prices are up year over year in both waterfront and non-waterfront properties. Read more.

North Okanagan, B.C.
North Okanagan moved from a seller’s market in 2018 to a balanced market in 2019 due to reasonable demand and high inventory. Read more.

PRAIRIES

Sylvan Lake, Alberta
Sylvan Lake has remained relatively flat over the course of the past year due to the stagnant economy. Inventory levels are higher than normal, with little sales activity occurring. Read more.

Qu’Appelle Valley, Saskatchewan
Overall, sales in the region have decreased, but the sales that have occurred are at higher price points, leading to an increase of median price. Read more.

ONTARIO

Muskoka, Ontario
Inventory for all recreational property types in Muskoka has increased in 2019, resulting in more balanced market conditions in the region. Read more.

Haliburton, Ontario
Values of Haliburton properties have increased year over year. Cottagers hailing from Muskoka are looking to Haliburton as a quieter alternative to the busy recreational market. Read more.

ATLANTIC CANADA

Cape Breton, Nova Scotia
Cape Breton is experiencing a balanced market, but a seller’s market is on the horizon. Read more.

Prince Edward Island
Prince Edward Island is experiencing a balanced market, with an influx of Millennial buyers looking for year-round waterfront properties. Read more.

Key Findings from the 2019 RE/MAX Recreational Property Omnibus Survey

1. 40 per cent of all Canadians, and 56 per cent of Millennials, are in the market for a recreational property

2. Canadians cite the following reasons to own or want to own a recreational property:
• It is where I can go and relax and spend time with friends and family = 64 per cent
• It is a getaway home = 58 per cent
• I can do activities I can’t do at my permanent residence (hiking, fishing, etc.) = 43 per cent
• It is an investment property = 30 per cent
• It is a retirement home = 20 per cent
• Other = 2 per cent

3. 30 per cent of all Canadians say they use or would use a recreational property as an investment opportunity. Millennials rank the highest among this group, at 33 per cent, compared to Boomers at 28 per cent

4. More than half (54 per cent) of Canadians who own or are considering owning a recreational property are willing to travel up to two hours, and 24 per cent saying they would travel two hours. Slightly less (22 per cent) are willing to travel three or more hours.

5. Canadians identify the following features as important when considering their current recreational property or a future purchase of a recreational property:

• Affordable purchase price = 61 per cent
• Reasonable maintenance costs = 46 per cent
• Waterfront access = 45 per cent
• Proximity to town = 44 per cent
• Reasonable distance from primary residence = 35 per cent
• Relative seclusion = 28 per cent
• Land access = 24 per cent
• Proximity to sports/recreation = 24 per cent
• Nearby neighbouring properties = 12 per cent
• Island property = 7 per cent
• Other = 1 per cent
• None, don’t mind which features my recreational property has = 7 per cent
• Don’t know/prefer not to answer = 7 per cent

ARCHIVES

RE/MAX 2019 Recreational Property Trends Survey

RE/MAX 2018 Recreational Property Report

RE/MAX 2017 Recreational Property Report

RE/MAX 2016 Recreational Property Report

RE/MAX 2015 Recreational Property Report

RE/MAX 2014 Recreational Property Report

Here is a link to the full Report and for clickable images for better clear viewing! CLICK HERE

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

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