"The best way to describe our market currently is one of continued, modest improvement as buyers and sellers become more confident," says Ron Todson, President of the Fraser Valley Real Estate Board.
"In the last month in the Fraser Valley, we've seen an increase in sellers willing to accept an offer subject to another sale, we're seeing fewer deals collapse and we're seeing more moveup buyers, either improving on the size or quality of their existing home. These are all indicators of a return to a more typical, stable market."
Sales and Listings
August sales* didn't stretch out July's unusual summer mini-spike (when sales went up by 10 per cent over the previous month). August's sales ended up 13 per cent below the 10-year average for the month. But it wasn't a bad month in a year that's seen some extremely slow periods.
In all, 630 detached houses changed hands, along with 286 townhouses and 220 condominiums. Townhouses were the only housing type to build on July's sales increases, mainly because of strong numbers in Abbotsford, Langley, North Delta and Surrey North.
The spectacular-looking year-over-year sales gains should be taken with a grain of salt. August 2012 was the third-slowest August for housing sales in a decade.
What's Up, What's Down - At a Glance August/ July 2013 August 2013/ August 2012 Overall Home Sales -13.8% +22.4% - Detached -18.6% +21.4% - Townhouse +2.1% +36.2% - Apartment -7.9% +10.6% New Listings -15.6% +0.5% Active Listings -3.5% - 3.5%
August is not considered a great month to list your home for saletoo many potential buyers and sellers are away on vacation or just enjoying outdoor living. The new listings numbers reflect that. Compared to July, New listings of detached houses went down by 11.5 per cent to 1,136. Townhouse listings dropped by 4.7 per cent to 445, and 367 condos hit the market26.7 per cent fewer than in July.
The drops in new listings decreased the number of active listings by 3.5 per cent. Sales dropped by 13.8 per cent, however, and that took the sales-to-active-listings ratio for residential properties from 16.8 per cent in July down to 15 per cent. The Fraser Valley board considers this a healthy buyer's market. If you include other property types such as retail, agricultural and industrial, the sales-to-active-listings ratio is 12.4 per cent.
See detailed Fraser Valley Real Estate Board statistics, broken down by community.
MLS® Benchmark Prices
Prices are staying flat compared to July and to last Augustcompared to this whole year, really. The MLS® Benchmark Price is based on the price of a typical home for its neighbourhood.
Fraser Valley MLS® Benchmark Prices, % Change August 2013 July 2013 August 2012 Detached $551,000 0% -0.7% Townhouse $298,200 +0.1% -1.6% Apartment $203,900 +0.05% -1.3%
There's a good breakdown by municipality and housing type in the FVREB August statistics package, but it doesn't give values neighbourhood by neighbourhood.
As Ron Todson says, "Home prices generally remain unchanged or down slightly from a year ago; however, do check with your local Real Estate Agent if you're in need of specific values because the range between property type and community can be sizeable."
One thing to keep an eye on right now is mortgage rates.
Five-year mortgage rates have risen from below 3 per cent closer to 4 per cent since June. This is not because of any change in the Bank of Canada interest rates. Exactly three years ago it set its trendsetting overnight interest rate at 1 per cent, and once again the bank let it ride.
The current mortgage rate hikes are a response to bond yields and strong economic indicators. They are the work of the banks and other lenders, and we can expect to see more movement as the US economy wakes up.
Continued low rates are a vital concern for anyone who'll need a new or renewed mortgage in the next few months. That's especially true in the Fraser Valley, where so many first-time-buyers get their foot on the property ladder.
In times when mortgage rates are moving, a mortgage broker is another important ally for home buyers. This mortgage professional can access all lenders to find the best mortgage rate.
You can view the full FVREB statistics package for August 2013 here.
* FVREB's overall sales numbers include all types of property including commercial, agricultural and industrial. The statistics given in the tables above are strictly residential.See also:
Greater Vancouver Real Estate Market: August 2013
