White Rock BC Real Estate Blog

From the Fraser Valley Real Estate Board …

(Surrey, BC) – Not even the most engaging Olympics in Canadian history could completely slow the appetite for house hunting, according to the most recent statistics from the Fraser Valley Real Estate Board.

The Board’s Multiple Listing Service® (MLS®) recorded 1,204 sales in February, an increase of 23 per cent over January’s sales and an increase of 77 per cent over the 682 sales during February of last year.

Deanna Horn, president of the Board explains, “Although the phones were quieter and we did experience less traffic at open houses, we were surprisingly busy given how much everyone, including REALTORS® were enjoying the Games.

“Buyers are aware of two key changes that could impact their purchasing ability. The new mortgage rules coming in April, plus the Harmonized Sales Tax in July, so the ‘Olympic effect’ we were expecting wasn’t as deep.”

The Board’s MLS® received 2,879 new listings in February, an average of 144 per business day, providing buyers with 14 per cent more selection than they had the previous month. The number of active listings in February was 8,485, 12 per cent fewer than were available during February last year.

Horn adds that the combined strength of listings and sales currently is stabilizing Fraser Valley home prices. “Overall, we’ve seen modest price gains for the last three months. The benchmark price for all residential types combined increased less than one per cent from January to February.

“When you have a healthy level of inventory, it puts less upward pressure on prices and creates a stable, balanced market.”

In February, the benchmark price for Fraser Valley detached homes was $508,136, an increase of 11.3 per cent from the February 2009 price of $456,683.

The benchmark price of Fraser Valley townhouses in February was $324,708, a 9.8 per cent increase compared to $295,731 in February 2009. The benchmark price of apartments increased by 7.8 per cent year-over-year going from $228,091 in February 2009 to $245,879 in February 2010.

The Fraser Valley Real Estate Board is an association of 2,981 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.

Check out this new Single-family property that I just posted on my Web site. It is at 12216 Gardiner St. in White Rock. This Single-family property has 3 bedrooms and 4 baths. Located in the heart of Crescent Beach this Victorian style THREE storey home with sunny south facing backyard stands alone. Country kitchen, Great room with rock fireplace and charming Parlor dining room with lots of built in shelving. Home boasts pine floors and beautiful mill work throughout. 3 bedrooms, 4 bathrooms, heated oversized garage and carpeted loft games room with Juliet balcony. Just 2 blocks from beach and minutes from restaurants, coffee shops and parks.

Here’s a quick overview of the new mortgage rules unveiled last week … they take effect April 19th …

• New qualifying standards will mean borrowers must be able to handle a five-year, fixed-rate mortgage even though they may opt for a shorter term and lower rate.  As it now stands at the major banks, borrowers are income-tested for a three-year fixed rate.

• Refinancing homes will now be limited to 90 per cent of the value of a property, down from 95 per cent. That means property owners won’t be able to draw equity back down to the 5 per cent down payment level.  The government said this will help make owning a home a more effective way to save.

• A minimum down payment of 20 per cent will be required for government-backed insurance on properties not lived in by their owners, up from 5 per cent. This measure is likely aimed at tempering speculative buying of real estate by reducing the leverage available to buyers.

I expect this to put pressure on prices in the medium term but in the short term, we’ll likely see some volatility in the housing market as home buyers rush to beat the April 19th date.

Check out the story here!

I’ve just sold a Single-family property at 5785 147A Street in Surrey. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

Check out this new Single-family property that I just posted on my Web site. It is at 5785 147A Street in Surrey. This Single-family property has 4 bedrooms and 3 baths. Foxridge “Qualico” home in beautiful coveted family cul-de-sac. This well appointed home, the Meadow view plan, features “Great room” with front entry drawing room. The main floor welcomes you with high ceilings, archways, crown moldings, beautiful hardwood floors and designer colors. So many little extras. Spacious kitchen features large granite island and gas stove. Landscaped garden with large concrete patio and wooden Pergola makes this home both comfortable and perfect for entertaining. Located just steps from shopping, parks and the YMCA this 4 bedroom, 3 bath home is a welcome change for your family.

Canada has moved back into a seller’s market and will remain “unusually strong” through the first half of 2010 as economic conditions improve and low interest rates spur demand, according to Royal LePage’s Market Survey Forecast and House Price Survey released Thursday.

“The Canadian real estate market enters 2010 with considerable momentum from an unusually strong finish to the previous year,” Phil Soper, president and chief executive of Royal LePage Real Estate Services, wrote in a statement. “The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year.”

The report comes hard on the heels of several others that show the market continuing to gather steam.

In early December, the Canadian Real Estate Association said sales of existing homes surged 73 per cent year over year in November, and that the average sale price has soared 19 per cent. On Wednesday, reports showed Toronto home sales shot up 115 per cent in December and that prices had gained 14 per cent year over year. More of the same is ahead, other reports have stated.

But Soper said the market’s apparent froth should ease in the second half of 2010 as supply of listed homes increases and higher interest rates temper rising home prices.

So what does this mean?  Well, if you are considering selling, now is the time to do it to maximize its value.

Ottawa may tighten mortgage eligibility rules.  Mr. Flaherty (Canadian Finance Minister) said the government is worried Canadians may be taking on too much debt because of historically low interest rates … and could get into trouble when rates inevitably rise summer 2010.

In recent weeks, the Bank of Canada has called record household debt the top risk facing the country’s financial system, a warning repeated in Toronto last week by the central bank’s governor, Mark Carney.

The government is looking at making two changes:

1.  Increase the minimum down payment on residential mortgages from 5 per cent to a higher figure (possibly 7.5% - 10%).

2. Reduce the amortization period from a maximum of 35 years to something less (possibly to 30 years).

Stay tuned for more info as it becomes available.  For more details check out this Globe & Mail article.

Well, looks like we are back in a Seller’s market, financial markets are up and everyone is breathing a sigh of relief.

The white rock real estate market has bounced back so quickly that it has left everyone scratching their head.  In the past, when markets have ended a long run of price increases and activity, it has taken three or more years before that kind of activity is seen again. This time however we are seeing unprecedented increases in activity compared to the same time last year. For example, in September 2008, there were 55 house sales in the White Rock South Surrey area, this past September there were 120, an increase of 118%! At the same time the number of new listings declined by 26.4%. It doesn’t take a  rocket scientist to deduce that we are no longer in a Buyer’s market.Although prices are still down from their peaks, month over month price gains have been experienced in the last several months and if they continue to increase it probably won’t be more than a year before we are back to those lofty prices.
Interest rate hikes will not be the only thing that might stimulate fence sitters to get into the housing market sooner than the planned. Starting July 1, 2010, the costs associated with buying and selling real estate are going to be hit with more than double taxation than presently, when Harmonized Sales Tax legislation comes into effect.

TD bank had some interesting things to say today about Canadian Real Estate in the Globe and Mail - rings true for White Rock Real Estate as well … “Existing home sales haven’t just recovered this year, they are better than they were going into the economic crisis. No other Canadian economic indicator has rebounded as sharply as sales of existing homes over the last few months”.

As I’ve stated in other blogs, much of the rebound can be attributed to pent up demand although demand will likely fall off a bit as we move into November and December.   The number of new listings should continue to rise, however, providing sellers modest price gains through 2010.

TD bank feels as if the market will change in 2011 as “eroding affordability” begins to weaken demand and with supply increasing, price growth should slow a bit.  Time will tell …

Cherrs!

Low interest rates continue to fuel a strong housing market in the Fraser Valley according to the President of the Fraser Valley Real Estate Board.

The Board processed 1,590 sales on MLS in September, up 62% compared to the 980 sales during the same month last year.  Compared to August, sales were down 11% at 1,786.

Generally speaking, summer months are stronger compared to beginning of fall but this is still a very strong month.

In September, the average number of days on market for a detached home in the Fraser Valley was 55 days, a decrease from the average of 60 days where it’s hovered for five months. Townhomes sold on average in 46 days in September and apartments, 54 days.

With respect to White Rock real estate, there were 218 homes sold in September 2009 (53 houses, 49 townhouses and 49 condos).  Compared to this time last year that’s an increase of 75% (124 sales versus 218).  Average White Rock real estate prices were as follows for September 2009:

• House:  $529,846
• Townhouse: $315,896
• Condo:  $20,957

More details for White Rock / South Surrey …

Houses

Townhouses

Condos / Apartments

Cheers!