Market Report for September 27 2012

We are now into what is typically our Fall Market. Usually the second busiest time of the year to buy or sell your home. So, ‘What is happening out there?’ Currently (September 27) there have been 2289 new listings in the Fraser Valley which is up from 1957 in August and about the same as Sept 2011. Sales on the other hand, are down so far at 761 compared to 842 in August and 936 last September. What does this mean to you if you want to buy or sell? The best way to find out is to contact your real estate specialist and have a complete assessment done on how this will affect your real estate objectives and plot a course of action so you can achieve your goals. While our media does not paint a rosy picture of the market, we still have to be aware that they are painting with a very broad brush and on a local level things might be dramatically different. My assessment is that we are very much in what is referred to as a ‘buyers market.’  Meaning that inventory levels and current activity are favoring the buyer and investor. Interest rates are low which also favors the buyer and investor.  Recent reports from the economists at BCREA indicate that our BC Economy is still growing and we still have people moving to our community. I see these as positive signs that activity levels will improve in the future. The lower activity through the summer months and the first part of September could mean that the demand for housing is building and that we could see a modest spike in activity later this fall or early in the new year. If you are looking to do something, I am happy to help you where I can. I think it is a great time for first time buyers to jump in and experience home ownership as well as persons looking to invest and start building a real estate investment portfolio. Why not contact me today to see if this is a good time for you to get started or enhance your current situation. 

News Release: September 5, 2012

HOME PRICES RESILIENT DESPITE LOWER SALES IN THE FRASER VALLEY

(Surrey, BC) – In August, sales on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) ranked the third lowest for the month in the last decade – after 2008 and 2010.

Last month’s 1,073 property sales represent a 20 per cent decrease compared to the 1,341 sales during August of last year and 23 per cent fewer than in July. In 2008, the Board processed 910 sales in August, and in 2010, 997.

“It was a slower August, but nowhere near historical lows for our Board so it’s too soon to tell if it’s a sign of a longer-term trend or if buyers and sellers in the Fraser Valley finally enjoyed a bit of summer,” explains Scott Olson, FVREB president. “We do know that our economy currently remains fundamentally strong with stable mortgage and employment rates; and, our region in particular has some of the fastest growing communities in the Lower Mainland.”

Olson says, “And we’re seeing evidence of that growth in the sales of more affordable, attached properties in the Fraser Valley. For example in August, apartment sales went up significantly in Central Surrey and Abbotsford and remained on par in North Surrey and Cloverdale compared to last year, suggesting that first-time buyers are continuing to find opportunities.”

Similar to sales, the Board saw a decrease in new listings. We received 2,406 in August, a decrease of 8 per cent compared to August 2011 and 18 per cent less than we received in July. This caused the number of active listings to decrease month-over-month, however the 10,366 active listings at month end still remained 3 per cent higher than the 10,074 listings available in August 2011.

Across the Fraser Valley, the benchmark price of a single family detached house in August was $551,400, an increase of 3.5 per cent compared to $532,700 in August 2011.

For townhouses, the benchmark price in August was $303,000, a decrease of 0.7 per cent compared to $305,200 during the same month last year. The benchmark price of apartments in Fraser Valley in August was $206,600, an increase of 3.4 per cent compared to $199,800 in August 2011.

Olson adds, “Overall, we’re seeing prices stay resilient, however in almost half of our communities, the three-month trend is showing a decrease in prices while the other half is showing increases so for a detailed market analysis, check with your local REALTOR®.”