It's Summer and the 2nd quarter of the year is done. The weather is hot just like our Real Estate Market!
I have analyzed all of the stats for June as well as the 2nd Quarter and here are some insights to our market right here in the Fraser Valley:
- We have entered a Seller's market for houses with 27% of the homes selling within a month and we are in a Balanced Market for attached homes with 17% of the homes selling within a month.
- Sales are up 18.2% from a year ago
- Inventory is down -1.7% from a year ago.
- The detached housing market has 4.0 months of inventory while our attached market has 6.4 months.
- The average price of a house is $568,77.
- The average price of an attached home is $300,100.
If we compare from the start of the year (January):
Prices are up 4% for houses and up 19% for attached homes.
If we compare from a year ago (June 2013):
Prices are up 5% for houses and up 15% for attached homes.
Now... there are some areas that are selling better than others just as some areas offer better buying opportunities. Here are the three most expensive areas:
For Detached Homes:
1) South Surrey with an average price of $860,000
2) Langley with an average price of $600,000
3) North Delta with an average price of $559,000
For Attached Homes:
1) South Surrey/White Rock with an average price of $384,750
2) North Delta with an average price of $352,500
2) Cloverdale with an average price of $334,000
The market is responding the way it is because of the following three factors:1) Interest rates: The big banks have kept their mortgage rates in check and are offering 5 year money for under 2.99% again. The prime rate has stayed at 3.0%.
2) Confidence in the market: Prices have not declined as the market has maintained a good level of inventory and the increase in sales has not scared buyers away. The sales activity level is at a pace that is comfortable for both Buyers and Sellers and prices are seeing a smooth increase rather than a very sharp one.
3) Transfer of Wealth: More and more Baby Boomers are downsizing or cashing in on their real estate. They are not holding mortgages so this is a huge influx of cash for them. They are able to use this cash to settle themselves in comfortably to support their lifestyle and are also able to help their kids get into the market.
What is going to be interesting is to see if there will be any impact that the raise in lenders insurance premiums is going to do on the market? As of May 1st, CMHC and Genworth increased it's insurance premium .05% to .40% on high ratio financing (Less than 35% down). This is making it a little bit more expensive for borrowers and they are absorbing those costs in their monthly mortgage payments
I have put the 2nd Quarter Stats into a graph form. The first two graphs show the Percentage of homes selling and the next two show the Months of Inventory.
An average of 24.79% of the houses listed are selling in their first month.
An average of 16.42% of the attached homes listed are selling in their first month.
An average inventory of 4.3 months for detached houses which is a balanced market.
An average inventory of 6.8 months for attached homes which is a Balanced market.
If you would like to compare how the 2nd Quarter stats differ from the 1st quarter stats, click on the 1st Quarter Market Stats for the Fraser Valley.
If you have any questions about the market in your neighbourhood or need assistance in planning your next real estate move, please feel free in calling me or simply filling out our contact form.
Enjoy the sunny weather!Posted by Tony Cikes on