December 2018 Fraser Valley Real Estate Update
With the holiday season ahead of us it means family is coming from out of town and if your schedule is anything like mine, you have 17 parties to go to every day from now until the new year!
With all these different gatherings happening, it seems that news and politics always finds a way to show up in the conversation one way or another! Real estate has been a pretty hot topic for the last few years, and conversation about our market always seems to come up. If you have anyone asking for a great realtor, I would be honoured if you feel that I am a worthy name to share with your friends and family as a resource for any real estate or community related information. I am always happy to help where I can!
November 2018 saw sales activity continue to slow down as it has been for the last half of 2018. If we look at the numbers in comparison to November 2017, things would appear to be quite alarming. November 2017 however, happened to be a record setting year, and our November 2018 numbers are right on par for historical averages. Nov 2018 saw 1,028 sales compared to Nov 2017's 1,743 sales. The 10 year average for November is 1,121 sales
I don't think I need to mention again how the attached market in November 2018, has not been any different than the rest of the year with over 50% of the Fraser Valley sales coming from Townhouses and Condos. It seems evident that this is going to be the new norm moving forward.
Our market is still considered to be in a 'balanced market' with a sales to active ratio of 15%. This means that 150 homes out of every 1000 listed will sell. A balanced market is the best market for most, and the majority of homes are sold in order to purchase a new home. If you are upgrading your home in a balanced market, you know that you will likely get a good price for your home, while being able to get your new home for a good price as well. Every area is different as the Fraser Valley is a very large area, so feel free to ask about your specific neighbourhood, I am always happy to help where I can!
On a closing note, the Canada Mortgage and Housing Corporation (CMHC) has released their fall 2018 outlook. In the report it was mentioned that Metro Vancouver is forecasted to see a 9% price decrease in 2019 and another 4% in 2020. Now these are of course just forecasts, and the Metro Vancouver area covers everything from Vancouver to Abbotsford, so the numbers in your neighbourhood will likely vary from this, and I expect the numbers to be a little lower than this on the Fraser Valley side of things. The CMHC takes several things into account in it's report including population growth, previous sales, new homes in construction and of course interest rates.
It may seem to make more sense to wait for the prices to come down before you buy, but we do have to take interest rates into account as well. Interest rates are most likely going to increase in the new year, with estimates varying depending on who you speak with, but numbers range from 4-6% for a 5 year fixed rate term! Every 1% interest rates go up, you lose 10% of your buying power which means you might be better off buying sooner than later... This is of course depends on your unique situation, and I would love to take this conversation to a more personal level about your situation, just give me a call.
Of course all of this means that if you are thinking of selling, sooner is likely better than later in order to get the maximum value for your home while buyers can still afford higher prices. If you are going to be moving up in your next home, the story is the same. If you are considering downsizing, a little bit of time may be on your side, but again, it depends so much on your unique situation.
I look forward to speaking to many of you as I do every month with any questions you have!
I hope you all have a wonderful holiday season and a very happy new year!
Kevan Lewis
Kevan Lewis - HomeLife Benchmark Titus Realty
phone:604-218-5635
email:kevan@kevanlewis.com
address: 105 5477 152 street
HPI® Benchmark Price Activity
- Single Family Detached:At $976,200, the Benchmark price for a single family detached home in the Fraser Valley decreased 1.1% compared to October 2018 and did not change compared to November 2017
- Townhomes:At $532,800, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 1% compared to October 2018 and increased 5.4% compared to November 2017
- Apartments:At $422,500, the Benchmark price for apartments/condos in the Fraser Valley decreased 2.4% compared to October 2018 and increased 12.2% compared to November 2017.
New Listings
3 Reasons Why a House Isn't Selling
Have you ever driven by a For Sale sign and wondered, “That house has been on the market for a long time, I wonder why it isn’t selling”? You might have asked that question because you were worried the same thing would happen when you put your own house on the market!
Often a home doesn’t sell for one of three reasons:
1. The price is too high.
Sometimes a homeowner will set the listing price exceptionally high in the hopes of getting lucky. What happens instead, however, is potential buyers stay away. In today’s real estate market, a house usually sells at a price that is close to its market value. Fortunately, the current market value of your house - and, hence, its approximate selling price - may be higher than you realize. It’s worth getting a free market assessment.
2. The house doesn’t show well.
Sometimes a homeowner will set the listing price exceptionally high in the hopes of getting lucky. What happens instead, however, is potential buyers stay away. In today’s real estate market, a house usually sells at a price that is close to its market value. Fortunately, the current market value of your house - and, hence, its approximate selling price - may be higher than you realize. It’s worth getting a free market assessment.
3. The listing is poorly promoted.
Clearly, buyers won’t become interested in a property if they don’t know about it. The listing must be promoted effectively, and that involves much more than a For Sale sign.
Want more tips on selling your house? Call me today.
