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MARKET UPDATE SEPTEMBER 2017


Blog by Monica Dabrowski | October 10th, 2017


Demand for Fraser Valley Homes Remains Unchanged Despite Change of Season

Residential property sales in the Fraser Valley remained strong in September, with both attached and detached homes performing well throughout the region.

The Fraser Valley Real Estate Board processed 1,619 sales of all property types on its Multiple Listing Service® (MLS®) in September, an increase of 24.1 per cent compared to the 1,305 sales in September of last year, and a 13.8 per cent decrease compared to the 1,879 sales in August 2017. This was the fifth highest sales total for a September in the Board’s history.

Of the total sales processed 392 were townhouses and 470 were apartments, together representing 53% of market activity in September.

“Often we see summer demand continue as far as October, so it’s not unusual to have another strong month before the seasonal cool down," said Board President Gopal Sahota. “What’s unusual this year is that attached inventory sales are still driving the market despite the increased competition we’re seeing there.”


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Comparing Price Activity to Previous Month and Last Year

Single Family Detached

At $974,500, the Benchmark price for a single family detached home in the Valley decreased 0.2 per cent compared to August 2017, and increased 11.2 per cent compared to September 2016.


Townhomes
At $498,900 the Benchmark price for a townhome in the Fraser Valley increased 1.4 per cent compared to August 2017, and increased 17.7 per cent compared to September 2016.

Apartments
At $358,200, the Benchmark price for apartments/condos in the Fraser Valley increased 2.5 per cent compared to August 2017, and increased 35.2 per cent compared to September 2016.

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Stricter Mortgage Changes Expected January 2018
 

Proposed changes to mortgage qualifications are anticipated to take effect in January 2018. Requiring a qualifying stress test for all uninsured mortgages (regardless of down payment amount) is said to have the biggest impact on the housing market. By the end of October we should know what exactly the proposed changes to mortgage qualifications will be.
 
What is the proposed qualifying stress test rate for uninsured mortgages?
All borrowers regardless of how much down payment would have to qualify at a rate 2% above the contract rate.
 
How much will these changes impact you?
On average you will qualify for about 25% less mortgage amount than you would as of today.
 
How does this impact you?
If you are an active buyer, even those downsizing, get in touch with a mortgage broker to get pre-approved. A pre-approval is valid for 120 days.
If you have equity in your current property - it is in your best interest to consider borrowing against that equity now to ensure you qualify even if they do not plan on using the funds immediately.
 
Looking for a mortgage broker referral?
Contact me.
 
Ready to start looking for a home? 
Contact me!


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