Blog › November 2011

Surrey Is The Hottest Investment Market


Surrey is the hottest housing investment market in British Columbia

According to a Real Estate Investment Network, Surrey is the hottest market for housing investment in British Columbia, followed by Maple Ridge/Pitt Meadows in second postition and  Kamloops holding the third spot. Read the full report here.

The report looked at the prospects invetment opportunities across the province of British Columbia and identified the towns and cities projected to outperform in the nedt 10 years. Some of the key factors used in the study included:

The rate of population growth compared to the provincial average

  • New infrastructures being built to handle population growth.
  • Current and new employment opportunities in the area.
  • Potiticall stability and leadership in ceating growth in teh area.
  • Local leadership to take advantage of the economic and real estate growth.
  • Planned transportation improvements and other infra structures projects to support growth.

The towns that were ranked trom top to bottom 11 spots are:

  1. Surrey
  2. Maple Ridge and Pitt Meadows
  3. Kamloops
  4. Abbotsford
  5. Fort St. John
  6. Dawson Creek
  7. Kelowna
  8. Comox Valley
  9. Penticton
  10. Prince George
  11. Vancouver

Affordability and proximity would be the likely reasons for investors from Greater Vancouver and Faser Valley buying investment properties in Surrey, Maple Ridge/Pitt Meadows and Abbortford.

If you are looking for homes suitable for investment in these areas, you can check out the homes for sale using the links here for Surrey, Meadowridge and Abbotsford.

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Fraser Valley Sales Report - October


October home sales for Fraser Valley

The real estate market in the Fraser Valley including Mission experienced below average home sales the past 6 months. Combined with a regular addition of new listings, the market now has a good supply of homes reaching 8.23 months of inventory. It is a buyers market where home buyers have a wide selection of homes to choose from. Read the full report here.

2011-11-27_2030

According to the president of the Fraser Valley Real Estate Board, Sukh Sidhu, “There is action when the property is competitively priced.

“It is not a quiet market. Priced-right properties are selling thanks to the continuation of low interest rates.” Sidhu adds, “What’s happening is that there is a large amount of inventory available in the Fraser Valley, in particular with condos and townhomes, and that’s what’s holding prices in check.” 

View homes for sale in Surrey, Langley, Abbotsford and Chilliwack.

The October benchmark  price of a single family detached home in Fraser Valley was $530,335 which was of 4.9% higher than $505,759 in October 2010.

For townhouses, the benchmark price was $325,482, an increase of 2% as compared to the same month last year.

The benchmark price of apartments at $243,725 was 1.3% higher than that of October 2010.

Condos are facing severe price pressure as there are now more condos on the market, and it took 75 days to on average to sell a condo. Detached homes were doing better at 45 days, while townhomes took on average 55 days to sell.


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Abbotsford Homes For Sale


Homes for sale in Abbotsford

acreage in AbbotsfordThe most saleable detached homes in Abbotsford are those between the price range of $450,000 to $600,000. And the area where most of these Abbotsford homes are located in Abbortford East, Abbotsford West, Aberdeen and Central Abbnotsford. View Abbotsford homes for sale here.

 Abbotsford detached homes for sale

Abbosford is an attrative place for home buyers who are down sizing and looking to live in a community with good amenities. Many choose to buy Abbotsford homes which are more affordable than other cities in Greater Vancouver.

You can view Abbortsford homes for by price using the links below:

Homes For Sale By Price Range

Under $300k $300k-$350k $350k-$400k
$400k-$450k $450k-$500k $500k-$550k
$550k-$650k $650k-$800k Over $800k

Abbotsford homes for sale by neighborhood


The detached homes for sale in Abbotsford in the various neighborhoods are as listed below:

Abbotsford East Listings (332)  Abbotsford West Listings (212)  Aberdeen Listings (84)  Bradner Listings (31)  Central Abbotsford Listings (87)  Matsqui Listings (19)  Poplar Listings (44)  Sumas Mountain Listings (15)  Sumas Prairie Listings (21)

If you like to have more info on any of the above Abbotsford homes, kindly contact us at 778-297-3000 or email us.

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Abbotsford Real Estate > Homes For Sale


Abbotsford real estate > homes for sale

Abbotsford real estate market for detached homes for sale currently has just over 800 listings on the MLS system. Manufactured homes which are mostly priced under $200,000 account for a very small per centage of just around 2.5% of the total single family homes for sale in Abbotsford.

Abbotsford homes are more affordable

Abbotsford homes for saleAbbotsford is one of the mucicipility in Fraser Valley where one can buy a detached single family detached entry level home under $300,000. There are more selection of better quality detached homes in Abbotsford at prices from $350,000 to $500,000. The homes for sale within this price range are made up of around 350 homes. This group of Abbotsford real estate accounts for about 42% of the detached homes listed for sale.

Executive homes in Abbotsford

Within the medium price band from $500,000 to $600,000, this group of Abbotsford homes forms about 17% of the single family homes for listed for sale on Abbotsford MLS system.

The more expansive Abbotsford homes are those that are priced over $600,000. This represents about 300 homes and forms about 35% of the single family homes for sale in Abbotsford.

Million dollar homes in Abbotsford

There are just under 100 Abbotsford single family homes that are for sale within this price group. The most expansive home is listed at a pricely $5.8 million. Most of the million dollar homes in Abbotsford that are priced above $1.2 million are acreage homes.  

If you like to have more info on any of the Abbotsford homes listed for sale, kindly contact us at 778-297-3000 or email us.

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Forecasting Home Sales For 2012


Home Sales Forecast For 2012

mlsresidentialsalesfourthquarter2011

BC Multiple Listing Service® (MLS®) residential sales are forecast to rise 3.2 per cent from 74,640 units in 2010 to 77,000 units this year, increasing a further 3.9 per cent to 80,000 units in 2012.

“Low mortgage interest rates are expected to persist through 2012 keeping affordability on an even keel,” said Cameron Muir, BCREA Chief Economist. “However, headwinds on the economic front will constrain consumer demand over the next year to below the ten-year average of 87,600 units.” A record 106,300 MLS® residential sales were recorded in 2005. Read the full report here.

Will home sales turn out as forecast?

The Greater Vancouver home sales from 2001 to 2011 showed a shift in the sales ratio for condos to townhomes as more condos were built and sold during the past 6 years. An analysis on condo sales in Richmond showed that the condo market is the most vulnerable and the weakest link in the real estate market.

Home Sales Statistics2

The above 2 charts are showing home sales declining since 2005. Instead of a slight increase in home sales for 2012 as predicted, the housing market for Greater Vancouver could contract resulting in home sales dropping another 5% to 10% (29,600 to 31,200 units) in 2012.

Low mortgage rates help to boost home sales

Home buyers who are enjoying low mortgage rates now will eventually have to face higher rates sometime in the future.  For now the housingn market is a buyer market. Whether sales will pick up in spring next year to soak up the excess supply is hard to say.

The dynamics of supply and demand for homes will play out in the market. We will know by March, 2012 which way the market is heading.

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Increasingly More Condos Are Sold


More condos sold than before

ArcadiaBefore 2002, condos accounted for about 8,000 units compared to around 4,000 townhomes. The sales ratio for condos to townhouses was around 2 to 1. With home prices getting higher and higher, many more condos were sold compared to townhouses after 2002. View homes for sale in Greater Vancouver, Fraser Valley and Chilliwack.

During this period, the ratio shifted to between 2.5 to 2.75 condos sold for each  townhouse. There were between 15,000 to 17,000 condos sold each year from 2003 to 2007. Most of the first time home buyers were younger buyers who bought condos as these homes are the most affordable to them.

Over the past 3 years Condo sales in Greater Vancouver average around 13,800 units ... some 41,000 home owners bought condos that were financed at ultra low mortgage rates. These buyers could be the most vulnerable to interest rates hike in the future. The danger is that the housing market could be set up for a long painful unwinding when interest rates start to spike up.

Buying a condo for investment

An earlier article analyzed the current investment risks faced by condos investors in Richmond. The same scenario could be applied to other cities around Greater Vancouver and Fraser Valley. The attraction in condo investment for property value appreciation may have long passed us.

At current return on investment for condos at just around 3.0%, it is hard to justified being a landlord.

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Is Buying A Condo A Good Investment?


Buying a condo for investment - good or bad idea?

Below is an analysis on buying a condo in Richmond for investment and it's return. Overall, the price appreciation in condo value in Richmond has not been spectacular over the past 5 years. In fact, for those who bought their condos after 2006, there is great likelihood that these investors will lose money when they sell their condos.

Other investors who bought condos for investments elsewhere in Greater Vancouver and Fraser Valley may be facing the same challenges.

Although condo prices gained in values, such gains are not significantly large enough to off-set their costs should they dispose their condos now. A drop in condo prices by 5% to 10% will result in these condo buyers losing money on their investments.

If condo investors are fearful of a dramatic market down turn, they will want to sell their condos before the market becomes unbearable.

Will the market be kind to condo investors?

An investor in 2007 could buy a 2 bedroom condos with around 850 sq ft at Lotus Living – 5900 Alderbridge Way73717373 Westminster Hwy or The Flo – 6888 Alderbridge Way7360 Elmbridge7362 Elmbridge Way in Richmond for around $450,000. Adding real estate commission around $16,000, these investors would have to sell their condos at $470,000 just to break even. Today, such condos can be bought at  $460,000 to $480,000.

When investors realize that there is a danger that the real estate cycle may turn against them, some will want to limit their losses by putting up their rental condos for sale.

A drop in price by 10% will result in these homes selling between $415,000 to $430,000!

The poor economic outlooks around the economies in Us, Europe and China are not encouraging. If these investors are concerned that condo prices could go down, some of them may want to sell their investment properties now before condo prices go down.

You can read the influence of low interest rates on home sales in Greater Vancouver and Fraser Valley.

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The Housing Market Is Fueled By Low Interest Rates


Low interest rates fueling the Canadian housing market

The credit crunch in early 2008 resulted in multiple cuts and reductions in interest rates. The ultra low rates helped to save the real estate market from collapsing. Home sales in Greater Vancouver after 2005 were declining and crashed in 2008. The market recovered in 2009.

Home sales were sustained by ultra low interest rates the past 3 years. At this time, there are no pressure for the Canadian Government to raise interest rates in the near future.

The US, Europe and Asia are still trying to cope with their financial problems. Meanwhile, low interest rates in Canada had lulled many home buyers taking up mortgages they could hardly afford. There is a real danger that these home owners will not be able to cope if rates are raised 2% or 3% from the current level.

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Greater Vancouver Housing Market Outlook


Housing Market Outlook for Greater Vancouver

Below is a chart showing the sales of detached and attached homes from 1995 to 2011. The 2011 figures are based on 10 months actual sales from January to October, 2011 and 2 months projected sales for November and December. As can be seen from the chart, the market for home sales appeared to have peaked in 2005.

If a home sales trend line is plotted for Greater Vancouver based on home sales date since 1995, would point to a steady home sales deline at a rate around 3.5% a year since 2005. 

Based on market trend and momentum, home sales in Greater Vancouver for 2012 could be heading for a sales figure around 30,000 homes. But, any severe external shock from the US,  Europe or Asia could bring the sales number down below 30,000.

On the pricing front, some small decline in home prices was noted in Richmond, BC the past 3 months. The housing market in Greater Vancouver had turned soft since May, 2011. We do not expect the next 2 months to contribute to any meaningful recovery in sales number. View homes for sale in Greater Vancouver, Fraser Valley and Chilliwack.

Will the market become active again early next year?

Some housing pundits are predicting home prices to go down the next 2 years. Most are predicting a moderate single digit drop in price. Home owners who bought their investment properties before 2005 can expect to do well if the property they bought are single family homes. Condo buyers who bought after 2006 are not expected to make much money if they sell at today's prices.

Sales activities for 2012 should be fairly active, but home sellers will have to adjust their prices according to the market. It is a buyer market now in Richmond with inventory hovering around 8.43 months supply of homes.

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Greater Vancouver Home Sales Statistics


Greater Vancouver Home Sales Data

What a ride from 1995 to 2011! Home prices were stagnant for a few years from 1995 to 2001. Greater Vancouver home sales took off when Canada's interest rates were cut several times and lowered dramatically after the dot.com burst. You can view the interest rates chart below to see the rate reductions over the past 10 years.

BankRates

Home prices in Greater Vancouver made specticular gain over the years, but sales and home prices took a beating in 2008 caused by severe liquidity problem and the collapse of Lehman Brothers in the US. The market recovered in 2009 and continued to rise until May 2011. The market eased off a littlle over the past few months.

REBGV_StatsPackage_October2011

What will happen the next 2 years?

Some economists are projecting the market will stay flat or declines a little the next 2 years. The next 2 years could be challenging years for the housing market to hold on to the gains made the past 10 years.

The chart below showed that home sales peaked some 6 years ago in 2005. How much of the gains will be lost is hard to predict. If sales remain active about 30,000 units, the erosion in home prices will be limited. However, if sales slump below 28,000 units, a bigger drop in home prices can be expected.

Sales Statistics

We will discuss and analyse the significance of the sales figures in another segment of this blog.

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Tsawwassen Homes For Sale


South Delta: Tsawwassen real estate > homes for sale

V912926 - 862 TSAWWASSEN BEACH RD, English Bluff, Tsawwassen, BC - House/Single FamilyThere are some unique million dollar detached homes in Tsawwassen that are sought by home buyers who are looking for a quieter lifestyle, and yet not too far from the City Center of Richmond or Vancouver.

A good selection of executive million dollar homes can be found in Ladner and Tsawwassen. The concentration of these executive homes in this price range are mainly located in Tsawwassen.

Where are these homes located?

Residents in Ladner and Tsawwassen can tell you the most expansive homes are located near Cliff Drive, English Bluff and Pebble Hill in Tsawwassen, and some acreage homes in the neighborhood of Ladner Rural. Most of the Tsawwassen’s million dollar luxurious homes are located near Tsawwassen Beach. You can view Ladner and Tsawwassen’s million dollar homes  that are listed for sale here.

Million dollar homes in Tsawwassen and Ladner

As of November 20, 2011 there are around 35 million dollar homes listed for sale in Tsawwassen and Ladner. These million dollar homes can be found in the following locations:

Boundary Beach Listings (3) Cliff Drive Listings (3) East Delta Listings (4) English Bluff Listings (6) Hawthorne Listings (4)Ladner Elementary Listings (1) Ladner Rural Listings (5) Pebble Hill Listings (5) Port Guichon Listings (1) Tsawwassen Central Listings (1) Westham Island Listings (2)

When you are buying a home, there is no real estate commission payable by you for the service of a real estate agent.

Should you require the help of a Team 3000 Realtor, you are welcome to contact us at 778-297-3000 or email us.

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Homes For Sale In Tsawwassen & Ladner


Tsawwassen & Ladner Home For Sale > $700,000 to $850,000

As of middle of November, 2011 there are just around 45 single family homes for sale in Tsawwassen. You can veiw these homes listed for sale on on the MLS system here. These homes are attractive price-wise to home buyers who are down sizing and looking for a great neighborhood not too far from Richmond or Vancouver.

Who are the home buyers?

V907159 - 5436 15B AV, Cliff Drive, Tsawwassen, BC - House/Single FamilyFor home buyers who are down sizing and moving from pricy part of Vancouver west, Richmond and the North Shore, Tsawwassen and Ladner are two very attractive communities that are very appealing to them. When comparing the features of these homes to those homes in Richmond with comparable lot size, living area and age, a home buyer will have to pay at least 30% or more in Richmond.  

Most of these single family home buyers are not ready to consider living in townhomes which offer less space and limited yard for gardening or the space for their pets to roam around. 

Homes for sale by neighborhood

You can view these homes using the neighborhood links below:

Beach Grove Listings (1) Cliff Drive Listings (9) Delta Manor Listings (3) English Bluff Listings (4) Hawthorne Listings (6)Holly Listings (4) Ladner Rural Listings (2) Pebble Hill Listings (8) Tsawwassen Central Listings (5) Tsawwassen East Listings (2)

When you are buying a home, there is no real estate commission payable by you for the service of the Team 3000 Realtor working with you.

Should you require the help of a Team 3000 Realtor, you are welcome to contact us at 778-297-3000 or email us.

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Tsawwassen Homes For Sale


Homes For Sale In Tsawwassen

Tsawwassen home for saleTsawwassen is a suburban community located at the farthest point south in the Lower Mainland of Vancouver and is on the northern border of Washington State. It is on a peninsula in the southwestern corner of the Corporation of Delta, British Columbia, Canada. Residential homes in Tsawwassen are consisted mainly of detached homes.

Tsawwassen real estate > detached homes

Tsawwassen home fro saleDetached homes or single family homes in Tsawwassen are sought by home buyers who are looking for a retirement community that is not too far from the City Center of Richmond or Vancouver. A good selection of executive homes between $900,000 to $1,000,000 can be found in Ladner and Tsawwassen. These executive homes near Cliff Drive, English Bluff and Pebble Hill in Tsawwassen, and some acreage homes in the neighborhood of Ladner Rural.

In recent years, new multi-family developments consisted of lowrise wood-frame condos being built in South Delta are centered around Tsawwassen. You can view some of the featured condos in Ladner and Tsawwassen here.

If you need the help of a real estate agent to assist you with your real estate needs, kindly call us at 778-297-3000 or email us.

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Housing Forecast For 2012


Housing Forecast Points to Market Stability in 2012

BC Multiple Listing Service® (MLS®) residential sales are forecast to rise 3.2 per cent from 74,640 units in 2010 to 77,000 units this year, increasing a further 3.9 per cent to 80,000 units in 2012.

MLS-Residential-Sales-Fourth-Quarter-2011“Low mortgage interest rates are expected to persist through 2012 keeping affordability on an even keel,” said Cameron Muir, BCREA Chief Economist. “However, headwinds on the economic front will constrain consumer demand over the next year to below the ten-year average of 87,600 units.” A record 106,300 MLS® residential sales were recorded in 2005. 

Read the full report here.

You can view homes for sale info on the MLS system in Greatger Vancouver, Fraser Valley and Chilliwack using the link here.

“Moderate consumer demand combined with larger inventories of homes for sale means BC housing markets will experience little upward pressure on home prices through 2012,” accofding to Cameron Muir, BCREA Chief Economist.

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What Do Expect Of Richmond Housing Market?


Richmond's housing market over the past 3 months had dropped below 300 units - to be more precise the aveage sale was 266 units from August to October, 2011. When compapred to the past 4 years, the weak sale could spell the beginning of a long overdue decline in home prices.

Will home prices drop sharpely?

The Greater Vancouver pricing trend as shown here is showing the housing market already peak, and possibly on the decline due to weakening sales.

October

The table below for Richmond's homes sales including detached houses, townhomes and condos showed an alarming drop in sales over the past 3 months.

Year - Aug to Oct Average 3 mth Sales (units)
2011 266
2010 340
2009 560
2008 233
2007 448

In 2008, the market suffered a 15% price decline due to the credit crunch when home prices dropped from April 2008, recovering sharply after February, 2009.

Will home prices drop sharpely or moderately? And, what could happen the next 6 months or 12 months?

The delay in implementing the abolishment of the HST for another 15 months is affecting many new developments. Some housing developers were reported to resort to absorbing the HST completely or partially to sell their homes.

With Richmond's inventory for homes hovering at 8.43 months of supply, many home sellers are already slashing their prices to attract buyers.

Good buying opportunity?

For home buyers, the market is favourable for them to shop and find the homes that's right for them. Definitely, there are a lot more choices, and sellers are willing to negotiate on their selling prices.

My take, home buyers should get ready, and if they right homes come along, they should serously consider making a move. For now, keeping track on the supply and demand situition will help them to monitor the market.

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