Solds in April 2013:

(Surrey, BC) – Home sales increased in April, with the Fraser Valley Real Estate Board reporting 1,366 sales processed through its Multiple Listing Service® (MLS®), an increase of 21.1 per cent compared to March’s 1,128 sales, but still lagging behind April 2012’s 1,435 sales.

“Historically, sales and listings activity noticeably increases during the spring months and April was no exception,” explains Ron Todson, President of the Board. “What’s different this year is that a number of external factors, such as tighter credit rules and the government’s spotlight on consumer debt have made some consumers more cautious about buying or selling a property. However, for those who need to move to a bigger or smaller home or to another community before summer hits, its business as usual because when you need a home, you need a home.”

The Board received 2,951 new listings in April, 5.8 per cent fewer compared to last year’s 3,134 new listings in April but up 7.8 per cent from March. Total active inventory at month-end was 9,995 listings, up from March but still down from 2012. The result has been that the balance between sales, new listings and total active inventory shifted slightly in favour of a balanced market, with April’s sales-to-active-listings ratio increasing to 14 per cent compared to March.

Todson says a balanced market helps to keep prices in check. “Depending on the market area and property type, prices are either slightly up or down based on desirability and availability of product, underscoring the importance of understanding what’s going on in your specific area, which is exactly where REALTORS® can help.”

In April, the benchmark price of single family detached homes in the Fraser Valley was $547,300, an increase of 0.4 per cent compared to $545,000 during the same month last year. For townhouses, the benchmark price was $299,100, a decrease of 2.2 per cent compared to $305,900 in April 2012 and the benchmark price of apartments was $203,900, virtually unchanged from $203,800 in April 2012.

“Pricing is incredibly important in slower than average markets,” explains Todson, a real estate veteran with 30 plus years in the business. “We’re not seeing the rapid increases in home values of the last decade, which means that sellers may need to sharpen their pricing in order to be competitive, but buyers won’t see dramatic price drops. A balanced, steady market can be a very good market for consumers to be in.”

Source: FVREB

The Board also received 11 per cent fewer new listings in March compared to last year – 2,736 compared to 3,066 – keeping inventory in check. March finished with 9,503 active listings, 1.5 per cent fewer than March of last year and 3.5 per cent fewer than the 9,832 available during March of 2009; the highest volume of active listings for that month in the last decade.

Ron Todson, President of the Board, explains, “Although we saw a typical spring uptick in activity from February to March, our sales remained at about 70 per cent of the norm for March and our new listings came in at 90 per cent of what the Board would typically receive.

“Because inventory levels are in check, prices are staying in check.”

In March, the benchmark price of single family detached homes in the Fraser Valley was $544,300, an increase of 0.6 per cent compared to $541,300 during the same month last year. For townhouses, the benchmark price was $298,200, a decrease of 1.7 per cent compared to $303,400 in March 2012 and the benchmark price of apartments was $204,200, an increase of 0.8 per cent compared to $202,500 in March 2012.

Todson adds, “Inventory levels are not as high as they need to be to put significant downward pressure on prices of the benchmark, or ‘typical’ home. These are homes that have characteristics most common to houses in a given community.

“In fact, we’re seeing the reverse happen. Benchmark prices for all three main property types in the Fraser Valley increased in value during the first quarter of 2013. Since January, detached homes are up by 1 per cent, townhomes by 0.6 per cent; and apartments by 2 per cent.”

Based on February’s increase in activity, Ron Todson, President of the Board, is guardedly optimistic, “We’re seeing signals that the stand-off between buyers and sellers over the last six months is coming to an end.

“Business has picked up in the last month with increased traffic at open houses, sellers quicker to accept offers and homes selling on average two weeks faster than they did in January.”

Todson adds that tightening inventory has also had an effect, “When buyers see that their selection is diminishing they’re more motivated to act.” The Board posted 2,582 new listings last month, a decrease of 9 per cent compared to the 2,846 posted during February last year pushing the total number of active listings down by 1.6 per cent compared to 2012.

“As your REALTOR® will explain, each market is different. Right now, the market for detached homes is balanced in North Delta and Langley. The condo market is brisk in Abbotsford and Central Surrey and townhome sales are steady in North and Central Surrey as well as Cloverdale.

“One commonality amongst these areas and property types is greater affordability. What’s not doing well generally anywhere in the Fraser Valley is sales of higher-end homes unless they are priced competitively.”

In February, the benchmark price of single family detached homes in the Fraser Valley was $540,900, an increase of 0.7 per cent compared to $537,200 during the same month last year. For townhouses, the benchmark price was $296,700, a decrease of 1.3 per cent compared to $300,500 in February 2012 and the benchmark price of apartments was $202,500, an increase of 1.5 per cent compared to $199,500 in February 2012.

In February, it took on average 49 days to sell a detached home compared to 64 days in January. Townhomes took 60 days on average to sell compared to 72 days the month before and apartments spent an average of 66 days on the market in February compared to 83 days in January.

Source: FVREB March 4

Here’s a quick review of the real estate market for February.

• Sales are down across Langley and Fraser Valley
• Total solds in February 2013 (all properties in Fraser Valley) – 913
• Total solds in February 2012 (all properties in Fraser Valley) – 1269

Featured Property

• Sales are down across Langley and Fraser Valley
• Total solds in February 2013 (all properties in Fraser Valley) – 913
• Total solds in February 2012 (all properties in Fraser Valley) – 1269

Mortgage Rates

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Buying a Home?

Information that describes the property you are purchasing:

Refinancing Your Home?

Information that describes your existing property:

As part of your application process, you may be asked questions relating to what you owe and own. Some projected expenses relating to your property such as taxes, heating costs and condo fees may be requested.

Once the Lender has Given Final Approval:

A void cheque for the account that the mortgage funds are to be debited from.

This checklist is by no means exhaustive, as each lender has criteria that are important to them. Should you have any questions about applying for a mortgage or refinancing an existing property, speak with a mortgage professional. Your Realtor will be able to refer someone in your area.

*Your real estate agent will be able to provide these documents to your bank or mortgage broker.

**Typically required if purchasing strata-titled property.

Source: REW.ca (Aug 27, 2012)

The Home Buyers Plan (HBP) allows the penalty free withdrawal of cash from a Registered Retirement Savings Plan to be used towards a home purchase.

A Home buyer can withdraw up to $25,000 from the RRSP without penalty. A married couple or common-law couple can each withdraw the same amount. You cannot have owned a home within the last 5 years.

A great advantage of this plan is that it allows you to buy a home with a down payment of more than 20% which means you do not need to purchase mortgage insurance which is required on high-ratio loans.

The RRSP must be active and the contributions must remain in the RRSP for at least 90 days before they are withdrawn otherwise they are not deductible.

Some additional rules to be aware of:

This is a great option for first time buyers, it can be a great tool to get into the housing market today.

Source:  REW.ca (March 1, 2013)

1. People who look for a home during the Holidays are more serious buyers!
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
3. Many people from overseas come to visit friends and family members in our marketplace over the Holiday season. Some of these visitors will buy real estate. Why miss these buyers by not being on the market?
4. Houses show better when decorated for the Holidays!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the Holidays than they do during a working week!
7. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!
8. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!
9. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
10. Since the supply of listings will dramatically increase in the New Year, there will be less demand for your particular home! Less demand means less money for you!

• 1.1 in 10 homes are selling – Buyers Market
• Homes are selling on average 3.5% below list price
• Detached Homes – Most active price range: $300,000 – $400,000 with 2 in 5 homes selling – strong Sellers market
• Attached Homes – Most active price range: $400,000 – $500,000 with 1 in 4 homes selling – strong sellers Market

What does this mean?

• Sellers – need to price their homes properly at the start and use good comparables!
• Buyers – great time to buy – lots of inventory, good prices and low interest rates!

Source: SnapStats Publishing Co

The B.C. provincial government has introduced new regulations making depreciation reports mandatory for strata corporations in B.C. Strata corporations of less than 5 units will be exempt from the requirements, plus a strata corporation may consider exempting itself by passing a 3/4 vote resolution. Changes to the Form B, Information Certificate were also introduced.

All non-exempted strata corporations will be required to commission a depreciation report by December 2013.

• “What to know about Depreciation Reports” – a CHOA information guide
• A copy of the CHOA News Release may be found here
• A copy of the regulations may be found here
• A copy of Tony Gioventu’s Condo Smarts column re: Depreciation Reports and Form B changes may be found here
• Additional information is available at the B.C. Government’s Strata Property website
• A copy of the Strata Property Act Form B (as of March 1, 2012) may be found here (PDF)
• A copy of a Depreciation Report Request For Proposal may be found here (PDF).

Source: The Condominium Home Owners Association of BC

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