Recent stats of Fraser Valley real estate board has indicated that although April month was very slow, but we still see strong sales in specific property types and price range. Detached homes under one million price range and attached homes in the range of $400,000 to $700,000 are still in demand. This segment of buyers are very active and putting offers on properties they like. They don’t want to miss the opportunity to move in to their dreams homes and benefit from this slow market.
My realtor friends are worried that a lot of offers are collapsing due to financing, and we are hoping the government would make some changes in regulations regarding mortgages. Buyers may not have purchasing power now but they have strong desire to either upgrade their homes or to stop renting and own their own homes. First time buyers would like to move into their own condos because rents have go so up.
The positive impact of this slower and stable market is that affordability have improved. Prices to typical residential home in Fraser valley have come down by 5 to 8% in last year, and even more than 10% in some cases. Single family homes stay around 37 days in the market now before they get sold. Sellers have to reduce prices in some cases as well.
Benchmark prices of single family homes in Fraser Valley is $964,600 which is 4.8 percent less that 2018. Town homes benchmark price is $521,800, condos $420,700 which is also around 5-7% decreased from April 2019.
As per CMHC Housing update Surrey has topped at 8.9% for new households driving housing demand. In other words Surrey’s population is growing big time after recent surge in a lot of new immigrants and students moving to Surrey. This has lead to high construction activity in Vancouver. Condo and apartment completion has increased by 34% in 2018. CMHC is offering 25% refund on insured mortgage on energy efficient houses. They call this plan as CMHC Green home. They also offer purchase plus improvement plan, where buyers could finance renovation of their homes as well.
J. Paul Getty wrote- “Buy when everyone else is selling and hold until everyone else is buying.” This is not just a catchy slogan, it is very strong fundamental of investing. Right now real estate market is great for buying. There are plenty of ‘deals’ that you were looking. It is time to take action. You are never too late to start.