February 2019 Fraser Valley Real Estate Update
Many people simply don't understand how the process of real estate transactions and working with an agent like myself actually works. I often hear about buyers who try and work without an agent to avoid paying fees, only to get overwhelmed and frustrated in their efforts. What those buyers don't realize is that my services as a buyers agent are almost always FREE!
If you have a friend or a family member who is wary of working with an agent when they plan to purchase a home, make sure they know this important piece of information. The seller pays the commission of both agents in a standard real estate transaction. If you want them to be in good hands, feel free to pass my name along as well!
Sellers are sometimes confused about consultations and fees as well, but not quite as often. I never charge any fees until I sell your home, and there are never any hidden fees outside of our listing contract. That means that all the marketing of your home, including videos and photography, web ads, social media ads, open house fliers and everything else are all paid by me, out of my pocket and if for some reason your home doesn't sell (which it almost certainly will with my proven marketing plan) you will not pay me a penny! So what have you got to lose? Give me a call today and find out what I can do for you to help you buy or sell your next home!
It may be a little early to be saying this, but it is looking as if the market is becoming a normal market once again. This means we will start to see numbers more in line with what we had prior to 2015, with of course the exception of prices, as they have increased so much that they are extremely unlikely to ever be what they were 4 years ago. The other major trend that looks to be here for good, is that condos and townhomes have been selling at a higher rate than single family homes. This is most likely due to a combination of affordability as well as the fact that as many as 25 or more attached units can, and are, being built where just 3 single family homes used to be.
Sales for January 2019 (784 sales) have decreased 2% compared to last month, December 2018 by 2%. This is not at all surprising though, as January is typically a very slow month for the market. We did see the active inventory, the number of homes currently for sale, increase by 10% in January 2019, compared to December 2018, and when compared to January 2018, we saw inventory climb a whopping 51%!
Increasing inventory is certainly a sign that the market will begin to be much more balanced going forward.
Prices are continuing to slip (see tables below for numbers) but not by any significant amounts. This expected, and is most likely the market correcting itself from the extremely quick increases we have seen over the past few years. When selling your home, it is extremely important that we know what is happening in the market, and the reality is, we simply cannot sell your home for the same price we could have at the market's peak.
Many buyers and sellers think that now is not a good time to take action, however, I would have to disagree. The only exception to this may be those sellers who are looking to downsize; Waiting a couple years may be beneficial in the long run. If you are looking to buy your first home, an investment, or sell and move up to a more expensive market, now is likely a fantastic time to take action.
I would love to hear from you with any questions you have, whether it be about the market as a whole, or a specific area and property type, I am always here for you. If you are thinking, even a little bit, about buying or selling, give me a call or get in touch with me today! I will never pressure you into making a decision one way or another, instead I believe in giving you the facts you need to make an informed decision yourself.
HPI® Benchmark Price Activity
- Single Family Detached: At $954,100, the Benchmark price for a single family detached home in the Fraser Valley decreased 1.2% compared to December 2018 and decreased 3.3% compared to January 2018.
- Townhomes: At $522,100, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 1.8% compared to December 2018 and increased 0.5% compared to January 2018.
- Apartments: At $409,000, the Benchmark price for apartments/condos in the Fraser Valley decreased 2.2% compared to December 2018 and increased 1.2% compared to January 2018.
New Listings
FOR SALE 108 10698 151A Street
$379,000
2 Bed
1 Bath
959 Sq Ft - Click the picture for VIDEO TOUR!
FOR SALE 304 10626 151A Street
$379,000
2 Bed
2 Bath
1090 Sq Ft - Click the picture for VIDEO TOUR!
BC's Speculation and Vacancy Tax
Whether you are happy about it or not, the reality is that it is here, and you should take action soon! The speculation and vacancy tax is a key measure in tackling the housing crisis in major urban centres in British Columbia, where home prices and rents have skyrocketed out of reach for many British Columbians.
The provincial government is taking action because people who live and work in B.C. deserve an affordable place to call home.
The speculation and vacancy tax is a part of government's 30-Point Plan to make housing more affordable for people in our province.
This new annual tax is designed to:
- Target foreign and domestic speculators who own residences in B.C. but don’t pay taxes here
- Turn empty homes into good housing for people
- Raise revenue that will directly support affordable housing
All owners of residential property in the designated taxable regions of B.C. must complete an annual declaration. Over 99% of British Columbians are estimated to be exempt from the tax.
How to Exempt Yourself
To claim your exemption, you must register your property by March 31, 2019 – and it’s easy to do, either by phone or online. The information you’ll need to register your property declaration will be mailed by mid-February to all owners of residential property within the taxable regions.
Contact us if you’re expecting a declaration letter from us and haven’t received one by late February.
Please note that if your property has more than one owner, even if the other owner is your spouse, a separate declaration must be made for each owner.
How the Tax Will Be Charged If You're Not Exempt
The speculation and vacancy tax rate varies depending on the owner’s tax residency and whether the owner is a Canadian citizen or permanent resident of Canada, or a member of a satellite family.
By levying the highest tax rate on foreign owners and satellite families (those who earn a majority of income outside the province and pay little to no income tax in B.C.), the speculation and vacancy tax is a way to make sure these property owners are paying their fair share in taxes.
The speculation and vacancy tax applies based on ownership as of December 31 each year.
<strongNote: The speculation and vacancy tax is distinct from the empty homes tax in the City of Vancouver.
