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MARKET UPDATE FEBRUARY 2018


Blog by Monica Dabrowski | March 9th, 2018


Lack of Supply Continues to Command Fraser Valley Housing Market
 
Market Update: Despite slight increases to both active and new inventory in the Valley, overall supply in February remained well below the ten-year average for the month historically.

The Fraser Valley Real Estate Board processed 1,385 sales of all property types on its Multiple Listing Service® (MLS®) in February, a decrease of 0.8 per cent compared to the 1,396 sales in February of last year, and a 14.5 per cent increase compared to the 1,210 sales in January 2018.

Of the 1,385 sales processed last month 336 were townhouses and 379 were apartments, together representing 52 per cent of all transactions in February.

"Attached apartment inventory in particular has struggled to keep up with the shift in demand we saw prominently throughout last year," said John Barbisan, Board President. "Without sufficient supply, it has become increasingly challenging for buyers looking to enter the market at that level."

For the Fraser Valley region the average number of days to sell an apartment in February was 13, and 16 for townhomes. Single family detached homes remained on the market for an average of 38 days before selling.

View the full statistics package here.

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Comparing Price Activity to Previous Month and Last Year

Single Family Detached
At $992,100, the Benchmark price for a single family detached home in the Valley increased 1 per cent compared to January 2018, and increased 15.7 per cent compared to February 2017.

Townhomes
At $531,000 the Benchmark price for a townhome in the Fraser Valley increased 2.2 per cent compared to January 2018, and increased 25.4 per cent compared to February 2017.

Apartments
At $422,300, the Benchmark price for apartments/condos in the Fraser Valley increased 4.5 per cent compared to January 2018, and increased 46.7 per cent compared to February 2017.

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BC Budget Housing Highlights

(1) Foreign Buyer's Tax has increased from 15% to 20% and expanded to include the Fraser Valley, Central Okanagan and Nanaimo and Capital Regional Districts. Areas for each region can be found at https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax/bc-areas.

(2) Speculation Tax introduced to target foreign and domestic homeowners who do not pay income tax in B.C. and will apply to same areas as foreign buyers tax apart from Okanagan, where it only applies to Kelowna and West Kelowna. Effective in 2018 at $5.00 per $1,000.00 of assessed value, goes up to $20 per $1,000.00 in 2019.  It is still unclear how this will affect vacation homes, nor when the tax is payable.


(3) Property Transfer Tax Tax increases from 3% to 5% on value of homes over $3,000,000.00. Threshold remains at 1% on first $200,000.00, 2% on amounts between $200,000.00 and $2,000,000; 3% on amounts between $2,000,000.00 and $3,000,000.00 and 5% on amounts over $3,000,000.00.


(4) Pre-sale condo assignments monitored and developers will be required to collect and report information about pre-sale condo purchases.


(5) BC Home Loan Partnership Program has been terminated. Borrowers have until 
March 31, 2018 to submit an application. The borrower must be pre-approved and submit a pre-approval document to BC Home Loan prior to March 31, 2018.

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