Fraser Valley housing market slows down in 2018

 Fraser Valley housing market slows down in 2018

SURREY, BC – After three consecutive years of total annual sales surpassing 20,000 units, 2018 saw the Fraser Valley real estate market return to more typical levels for both sales and inventory.

The Board’s Multiple Listing Service® (MLS®) processed 15,586 sales in 2018, a 30.2 per cent decrease compared to 2017’s 22,338 sales and the lowest total sales for the Fraser Valley since 2013. The total dollar volume of MLS® transactions for the year was $11.8 billion, dropping from $15.7 billion sold during the year prior.

Of the total transactions that took place in 2018, 3,866 were townhouses and 4,296 were apartments. Each of those property types saw a significant decrease in sales compared to 2017, with total townhouse sales dropping 25.6 per cent year-over-year and apartments dropping 30.5 per cent.

“In terms of demand, this is around what we’re used to seeing for our region,” said John Barbisan, President of the Board. “There is still a great deal of interest for Fraser Valley real estate, but with prices moving slowly and more inventory becoming available, many consumers are taking a deliberate approach now that they can afford to.”

For inventory, a total of 32,058 new listings were received by the Board’s MLS® system in 2018. This was the fourth highest total for new inventory in the Board’s history.

In December the Board processed a total of 800 sales, the lowest for the month since 2012. Inventory in December finished at 5,454 active units, with a total of 978 new listings entering the market throughout the month.

Barbisan adds, “With buyers shifting into the driver's seat and able to navigate the market more comfortably, it has become key for sellers to price effectively and leverage their home’s appeal to stand out and find success.”

“If you’re looking to enter the market in 2019, buying or selling, contact a local REALTOR® who can help you accomplish your goals in the new year.”


HPI® Benchmark Price Activity

• Single Family Detached: At $965,300, the Benchmark price for a single family detached home in the Fraser Valley decreased 1.1 per cent compared to November 2018 and decreased 1.5 per cent compared to December 2017.

• Townhomes: At $531,900, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 0.2 per cent compared to November 2018 and increased 3.7 per cent compared to December 2017.

• Apartments: At $418,300, the Benchmark price for apartments/condos in the Fraser Valley decreased 1 per cent compared to November 2018 and increased 7.6 per cent compared to December 2017.

Story provided by the Fraser Valley Real Estate Board
For Full Statistics Package pleas visit: http://www.fvreb.bc.ca/statistics/Package201812.pdf

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Top 6 Home Renovations in 2019

 Top 6 Home Renovations in 2019

What are the most common home renovations you think will add value to homes in 2019?

We reached out to our RE/MAX Influencers – a panel consisting of RE/MAX Sales Associates throughout Canada – to put together some of the home renos they think will come before the rest in 2019.



First Impressions Are Everything
Exteriors are quite literally the first thing that people see when they come to your home. Fresh landscaping, new exterior paint, cleaning and/or painting the siding, or upgrading the outside doors are all good places to start. Outdoor space renovations and covered porches are also high up on the list of must-haves.

Utility Upgrade
Sometimes the less “sexy” upgrades are the most important ones. In this market, people seem to be more concerned with things like the life of the furnace and hot water tank. It’s also important that the utilities are highly efficient. Upgrading to heat pumps instead of the traditional forced air systems that deal more efficiently and economically with changing outdoor temperatures are becoming more important.

Basement Suites
Whether it’s to bring in supplemental income or to enjoy themselves, extra space is becoming a priority.

“Secondary suites or in-law suites.  With rising interest rates many homeowners may need to bring in additional income to afford their housing costs.” – Loni Hamer-Jackson, RE/MAX Real Estate, Kamloops, BC

Kitchens & Bathrooms 
“Kitchens and bathrooms for sure – that never changes regardless of what year it is!” – Lisa Salt, RE/MAX Vernon, Vernon, BC 

Kitchen renovations are always a good place to start to add value to your home. Removing walls to design open floor plans in older homes is always good value. Adding an extra bathroom also goes a long way.

New Flooring
New floors is a good starting point as well when trying to refresh the place.

“Removal of carpets for cleaner air” – Judy Gray, RE/MAX Mid-Island Realty, Ucluelet, BC

It’s all in the Details
Most people would know that painting of the inside of the home can help with a sale, but pay attention to the little details. Shortcuts won’t help in the long run!


“When a home is freshly painted, but a buyer opens a closet door to find it has not been painted, buyers start to ask themselves what else has been “looked over”. Don’t miss the small stuff!” – Denise Gallup, RE/MAX Camosun, Sidney, BC


Article Courtesy of RE/MAX 

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CONDO FEES: Here’s what you need to know

CONDO FEES: Here’s what you need to know

Condos have become the home of choice for urban dwellers, as first-time buyers and increasingly, move-up
buyers seek affordability and liveability. In fact, a recent RE/MAX report reveals that condominium
apartments and townhomes now account for 37 per cent of residential sales in the Greater Toronto Area.
In fact, condos were the only property segment to make gains throughout the 2017 housing market
correction. What’s driving the trend

Affordability is a big factor behind the boost in condo living, but it’s certainly not the only one. Condo living 

comes with many other benefits, including urban conveniences, public transit, employment and 

entertainment close to home, as well as a lock-n-leave lifestyle for when life takes you further abroad. 

Part of the package, is condo fees. What exactly are condo fees, how are they calculated, and what do 

they cover? Here’s what you need to know.

Every condo owner pays a regular, non-negotiable condo fee. This fee is calculated based on your share

of the condo building – the larger your unit, the greater your fee. This fee is adjusted annually based on

the condo’s operating budget.

Your condo fees are divided into three main categories: utilities, common areas and the reserve fund. 

Let’s take a closer look.

A chunk of your condo fee goes to utilities such as water, hydro and sometimes heat – but this isn’t always

the case. Most brand-new condominiums are now being built with individual heat pumps that are controlled 

by, and paid for by individual owners. Make sure you’re clear on your condo fees before you buy.

We’ve already mentioned that condo ownership means less maintenance on your to-do list. But 

somebody’s gotta do it, right? Your condo fees cover that expense as well.

And remember those awesome amenities that your family and friends come over to use? You have to 

contribute to their upkeep. The more amenities your condo has, the higher your condo fees will be. 

Think pool, gym, hobby rooms, sports courts, an in-house theatre, indoor and outdoor areas. Ask yourself 

if you’re going to actually use all of the amenities offered by your condo, because you’ll be paying for them.

Condo fees also pay for snow and garbage removal, cleaning and minor repairs of common areas, exterior

window washing and the like.

A portion of your condo fee is set aside in a reserve fund, which every condo board must maintain as a 

savings account for big-ticket items that inevitably arise. A roof replacement can cost upwards of half a 

million dollars, so this fund is essential.

Then there’s the Special Assessment. In the case that the reserve fund doesn’t quite cover the bill, each
condo owner will be required to pitch in their proportionate amount to cover the cost.

If you’re considering condo ownership, make sure you incorporate the condo fee into your budget. Make 

sure to leave a buffer in case your condo fees increase, which tends to happen as condos age. Any 

increases are at the discretion of the condo board.

Before you make an offer, get a copy of the condo’s status certificate, which contains important info about 

the condo’s financial status. Review it and make sure you understand it. The document will include things

like the condo’s budget, any legal matters the condo may be facing, information about the reserve fund, 

current maintenance fees and whether any increases are planned in the near future.

The fee for the status certificate? $100. The information? Potentially worth a great deal more to your 

investment.

Courtesy of RE/MAX Commercial 

Gelderman.ca Real Estate Team
RE/MAX Aldercenter Realty

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everywhere!!

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Lowball Offer Basics 5 Things To Know

Lowball Offer Basics: 5 Things To Know

There are many scenarios where a lowball offer on a home can be a great buying strategy. You might find yourself in a buyer’s market, or face-to-face with a fixer-upper in need of some serious TLC, or dealing with a very motivated seller – all potential opportunities to get a home for less than asking price.

RE/MAX Canada polled their Facebook followers as to their bidding and buying strategy, and 75 per cent of respondents came back with a resounding “bid low!”

While there’s no hard and fast rule when it comes to making a lowball offer, there are some things you can do to improve your chances of success. First and foremost, trust your real estate agent’s professional opinion on whether or not to come in at a low price, and exactly how low you can go.

5 things to keep in mind when making a lowball offer

1. Understand the market. If it’s a buyer’s market, you’ve got less competition and more negotiating power. In a seller’s market, homes are more in demand, and the chances of a successful low bid are less likely. It’s a matter of simple economics. Trust the market conditions more than the home’s listing price, when making your offer. Have your agent do a comparative market analysis, for insight on what other homes in the area have sold for recently, and go from there.

2. Days on market. How long has the home been listed? If you’ve been keeping an eye on the listings, you’ll notice if a home keeps appearing in your feed. As days turn into months, desperation mounts and depending on the situation, the seller could be more likely to accept a low offer. It could be market conditions that have the home sitting on the market without any nibbles, or it could be the home’s condition. There may be room to come in low, but also a reason to. Have the home inspected, to ensure any problem areas can be fixed, and at what price.

3. Sweeten a low bid with a clean offer. When a quick sale is the seller’s objective, a great complement to an albeit low offer, is a clean offer. The seller likely already feels like he or she is making concessions on price, so removing conditions such as financing clauses will help. To help you stay limber at the offer table, ensure you get pre-approved for a mortgage before you start shopping. You’ll already have been approved for financing, and you know exactly how much you can spend. Removing this condition could tip the scales in favour of a quicker sale.

4. Understand the seller. Knowing the seller’s reasons for listing their home could help inform your strategy. Maybe the homeowner has already bought another home, and needs to upload this one to avoid paying double mortgages, double property taxes, double utilities, you get the idea here. Perhaps the owners have inherited the property, and have no interest in keeping it. A new baby, a new job, or a slew of other factors could also prompt the need for a quick and clean sale.

5. Make it low, but make it fair. Don’t risk offending the seller or the listing agent by coming in with a totally unreasonable offer. Ultimately, every seller wants a fair price, just as every buyer wants a bargain. Don’t waste the seller’s time – or yours – with an offer you know won’t be accepted. Be fair, and be prepared to offer reasons for your discounted offer. It could be the market conditions, the home’s condition, the location of the property, the length of time the home has been on the market, or something else entirely.

Your success of bidding low will depend on a number of factors, including your strategy, demand on the market, and the seller’s sense of urgency to sell. Work with your real estate agent to ensure your strategy considered your offer from all angles.

*data courtesy of RE/MAX

Gelderman.ca Real Estate Team

RE/MAX Aldercenter Realty

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9 Home Buying Mistakes First Timers Make

9 Home Buying Mistakes First Timers Make

9. Shopping before getting pre-approved for a mortgage.

Many first-time homebuyers decide they’re ready to take the leap, and start touring open houses “just to see what’s out there.” While getting a feel for the market is certainly a good idea, you risk falling in love with a home that is not in your budget. Before you start seriously shopping the market, visit your bank, mortgage broker or lender, and get a mortgage pre-approval. You’ll know the exact amount you’ll qualify for, so when you’re ready to make an offer, you can do so with confidence and no “conditional of financing” clauses.

8. Skipping the mortgage pre-approval altogether.

We’re mentioning this one again, because it’s super important. Getting pre-approved not only informs you of how much you can spend on a home, but it also guarantees the current interest rate for about 90 days, giving you the freedom to shop knowing you’re safe from rate hikes in the near future. With interest rates on the rise, this step is more important than ever.

7. Making major life changes when applying for a mortgage.

Once you’ve filed your application, avoid changing jobs, making big-ticket purchases on credit, or taking out new loans. These can all alter your financial picture, and can impact your ability to qualify for the mortgage or the amount you had originally anticipated. If possible, wait until after you’ve crossed the ‘t’s and dotted the ‘i’s.

6. Not saving enough for a down payment.

It’s true that the minimum requirement in Canada is five per cent, but try to put down at least 20 per cent of the purchase price. Having 20 per cent or more means you won’t have to take out a high-ratio mortgage – and avoid the mortgage default insurance premiums that go with it. If you are unable to save this minimum amount, this could be an indicator that you’re shopping beyond your financial capacity. Consider lowering your budget, delaying the purchase until you’ve saved enough money, and consult a trusted financial advisor for advice tailored to your situation.

READ: https://blog.remax.ca/much-will-cost-buy-house/

5. Not accounting for the “extra” costs.

You can estimate to spend (approximately) between 1.5 to four per cent of the purchase price of the home. This includes costs such as the deposit, property insurance, title insurance, lawyer fees, home inspection fee, moving costs and more. Be sure to budget these into your purchasing plan.

Use this MONTHLY HOME BUDGET PLANNER to get started.

4. Not seeing enough homes.

Before you settle down, make sure you sow your oats, so to speak. Since you’ve never owned a home, and particularly if you’re moving from your parents’ place, you’ll want to tour lots of different home styles and neighbourhoods. Keep an open mind – you just mist surprise yourself! When narrowing down your home’s location, weigh factors such as proximity to work, family and friends; public transit and access to major roads and highways; and things such as shopping, services, green space, and your lifestyle. which will affect the liveability of the home, its current value, and the resale price of your home.

READ: Location Versus Home Style

3. Seeing too many homes.

Don’t get us wrong – it’s definitely a good idea to see what’s on the market, if only for the sake of comparison. You’ll gain a better understanding of what comparable homes are valued at, their condition, and your negotiating power. This is valuable intel, whether you’re buying your first home or your tenth. But buyer beware: particularly in a hot market, sitting on the fence can mean losing the property. A trusted, experienced real estate agent can best advise you on this.

2. Not getting everything in writing.

Under the right market conditions, negotiating may be part of your purchasing plan. Any conditions of the purchase and sale must be on paper. If it’s not in the contract, it doesn’t count. Your contract is your only way of holding the buyer and seller accountable. An experienced real estate agent can help advise you, and negotiate on your behalf.

READ: 7 Questions To Ask An Agent Before Your Commit

1. Biting off more than you can chew.

You’ve likely heard the term “house poor.” Buying a home is a huge financial commitment, so ensure you can afford it. As a first foray into home ownership, condos are a popular choice, thanks to their lower price point, smaller footprint (read: less maintenance and lower operating costs) and their central locations. But condos are a lifestyle choice as well as a financial one. Consider your purchase from all angles.

READ: Buying A Home Without Breaking The Bank

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

Details courtesy of RE/MAX BLOG