Sutton Showplace Realty (2015) Chilliwack

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B.C.’s skyrocketing real estate market will ‘correct’ in 2019: analyst

11 December 2018
Sutton Showplace Realty Chilliwack

After years of skyrocketing real estate prices in much of urban B.C., things are finally set to cool off in the new year.

A 2019 market survey forecast from Royal LePage suggests that house prices are in the Lower Mainland will rise by just 0.6 per cent.

Last year’s forecast predicted prices would rise by five per cent.

Next year’s predicted increase would leave houses costing an average of $1.3 million by the end of the year.

Royal LePage Sterling Realty general manager Randy Ryalls said that the slowdown was a natural correction after a busy few years on the real estate market.

“The volume is down off of those crazy levels where we were selling 5000 properties a month,” Ryalls said.

“This is much more of a normalization of our market than we’ve seen in quite a few years.”

Ryalls said that the mortgage stress test brought in at the start of the year, coupled with the foreign buyers tax and other provincial policies, was helping to calm markets.

But for buyers who thought “the ship had sailed,” Ryalls said 2019 presented a new opportunity.

“The condo and townhouse market has sort of balanced itself out and detached houses are probably firmly in buyer market territory,” he said.

That means there will be opportunities for first-time millennials buyers for the first time in years.

“Where you were having to compete with several other buyers to buy a property in 2016 and 2017, now you have an opportunity to go and be the only buyer on a property and negotiate a pretty good price,” Ryalls said.

“There’s an opportunity for a millennial buyer. Now they can go and not make a decision in five minutes when they walk in the door.”

But recent buyers shouldn’t despair that they’ve bought a useless property.

B.C. still has “probably the best economy in Canada,” Ryalls noted, and with unemployment remaining low, the real estate market continues to have a strong foundation.

“There’s periods of a lot of growth in terms of prices and then it slips back a little bit,” Ryalls said.

“We’ve gone through a period when we’ve had double digit increases per year and that’s not sustainable and that’s going to correct itself a little bit.”

Credit to original article from The Progress: https://www.theprogress.com/news/b-c-s-skyrocketing-real-estate-market-will-correct-in-2019-analyst/?fbclid=IwAR3ryyK9hmHnS0v3IbXbcv6TMJF5swA7dDNnYbfuKdJmBXZ3_Kb-3_Z2FAM


Spring market kicks-off with slim supply in March

25 April 2018
Sutton Showplace Realty Chilliwack

Figures released by the Fraser Valley Real Estate Board showed that prices in markets covered by the FVREB rose in March compared to the previous month. The board covers Surrey, White Rock, Langley, Abbotsford, Mission, and North Delta.

While sales reached slightly above the ten-year average for the  month, a lack of sufficient inventory in the Fraser Valley continued to put pressure on home buyers in March.

The Fraser Valley Real Estate Board processed 1,664 sales of all property types on its Multiple Listing Service® (MLS®) in March, a decrease of 24.8 per cent compared to the 2,213 sales in March of last year, and a 20.1 per cent increase compared to the 1,385 sales in February 2018. The ten-year average for sales in the Fraser Valley in March is 1,658 transactions.


Of the 1,664 sales processed last month 410 were townhouses and 460 were apartments, together representing 52 per cent of all transactions in March.


Active inventory for the Fraser Valley finished at 4,796 listings last month, increasing 10.5 per cent month-over-month, and decreasing 0.2 per cent when compared to March 2017.


"We continue to see demand capped-off due to an inadequate amount of supply," said John Barbisan, Board President.
“March is typically when we see our market kick into gear, but we need to see higher levels of new listings coming in and greater overall inventory if we want more homebuyers to find success in the Valley.”


The Board received 2,865 new listings in March, a 24.9 per cent increase from February 2018’s 2,293 new listings, and a 6.7 per cent decrease compared to March 2017.


"On the plus side, despite a tighter market pricing has remained relatively stable for our region. Talk to your REALTOR® who can help show you the best options at the price level you’re looking for.”


For the Fraser Valley region the average number of days to sell an apartment in March was 13, and 16 for townhomes. Single family detached homes remained on the market for an average of 30 days before selling.


HPI® Benchmark Price Activity
• Single Family Detached: At $1,001,400, the Benchmark price for a single family detached home in the Valley increased 0.9 per cent compared to February 2018, and increased 15.2 per cent compared to March 2017.
• Townhomes: At $541,800, the Benchmark price for a townhome in the Fraser Valley increased 2 per cent compared to February 2018, and increased 24.9 per cent compared to March 2017.
• Apartments: At $440,400, the Benchmark price for apartments/condos in the Fraser Valley increased 4.3 per cent compared to February 2018, and increased 48 per cent compared to March 2017.

-- News Release by The Fraser Valley Real estate Board


Chilliwack Real Estate Statistics

15 January 2018
Sutton Showplace Realty Chilliwack