Market Update: The Fraser Valley housing market had its second highest selling year on record in 2017, with total MLS® transactions and dollar volume sold behind only 2016’s unprecedented level of activity.
The Board’s Multiple Listing Service® (MLS®) processed 22,338 sales in 2017, 7.3 per cent less than the record of 23,974 sales set in 2016. The total dollar volume of MLS® sales was $15.7 billion, coming out slightly beneath 2016’s record setting total dollar volume of $16.2 billion.
Of the total transactions for the year, 5,198 were townhouses sold and 6,183 were apartments, together representing over half of overall market activity for the region. This was also the highest total annual sales for apartments in the Board’s history.
“Much of the market’s momentum through 2017 came from the incredible shift in demand to attached-style homes, particularly in our larger communities,” remarked Gopal Sahota, President of the Board. “While prices continued to see slight gains month-to-month, a lot of our attached inventory remained affordable and an excellent option for consumers of all types.”
View the full statistics package here.
Comparing Price Activity to Previous Month and Last Year
Single Family Detached
At $976,400, the Benchmark price for a single family detached home in the Valley increased 0.4 per cent compared to November 2017, and increased 14.2 per cent compared to December 2016.
At $513,100, the Benchmark price for a townhouse in the Valley increased 1.5 per cent compared to November 2017, and increased 23 per cent compared to December 2016.
At $388,600, the Benchmark price for an apartment in the Valley increased 3.2 per cent compared to November 2017, and increased 40.5 per cent compared to December 2016.
Big Six Have Now All Raised Mortgage Rates
Rate hikes on five-year fixed-rate mortgage rates were initiated last week by Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank. Today, Bank of Montreal, Bank of Nova Scotia and National Bank of Canada became the latest to do so with both raising their posted five-year, fixed-rate mortgage rates to 5.14 percent from 4.99 percent. The banks initiated this hike ahead of a Bank of Canada policy announcement this Wednesday.
The rate hikes from the Big Six could affect the Bank of Canada’s benchmark rate and, therefore, the threshold future homebuyers must meet to qualify for an uninsured mortgage. The new 5.14 percent qualification rate would cut a borrower’s buying power by approximately 1.4 percent. The majority of mortgage debt is made up of fixed-rate loans, of which the majority has five-year terms.
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