Subscribe with RSS ReaderMonday, January 9, 2012 Market Forecast for 20122012 will most likely be a continued rebounding year for the British Columbia real estate market. Outside of the Vancouver Metro area, expect the real estate market growth to remain slow, but steady and stable. Overall, British Columbia is expected to see a higher than average growth in housing starts, estimated by the CMHC to be a 7.1% increase for 2012. Housing starts in British Columbia are projected by the CMHC to be roughly 24,000 on the low side with a high forecast of 28,000. Of these, 60% of the new starts are forecast to be multiple units. The bulk of new housing starts in British Columbia are expected to be in the Vancouver area, both in single detached homes and multi family housing. After seeing a substantial increase in sales prices from 2010, the average MLS price in Vancouver is expected to exceed $800,000 for 2012. The average unit price remains well over the average home price in British Columbia as a whole, and about double of the nationwide average. The price change is estimated to be less than a 3% increase. But with the stability of prices and good financing terms, resale transactions are predicted to increase by nearly 9%. One area showing substantial growth is the Surrey area. For the 2nd year, the Real Estate Investment Network of Canada determined Surrey the best real estate investment city in Canada for residential real estate. It also rated Surrey the fourth best overall city in Canada for real estate investment in general. This was based on average household income, transportation capacity, job outlook, population, and other factors. The Victoria Metro area is forecast to show an increase in sales and a modest jump in prices, after a 3 year decline in both areas. New construction in the Victoria area is expected to jump 10% in single homes and 8.1% in multi family housing. After 3 years of declining prices and housing starts, even a slight increase is welcome for the area. Prince George and Nanaimo are expected to show a slight increase in sales and prices, while Abbotsford is expected to show a decrease in price and a small decrease in sales. Both the Kamloops area and the Kelowna areas are expected to have double digit increases in sales for 2012, with modest price increases. As the 2 major British Columbia markets will continue to grow, the smaller markets will remain at a stable and slower growth rate. With stable prices and low financing, a potential buyer shouldn’t hesitate to take advantage of market conditions in the British Columbia province.
Monday, January 9, 2012 2011 real estate market showcases regional variationOverall, Fraser Valley’s real estate market in 2011 was below the 10-year average in property sales and above average in the number of new listings received, however, according to the president of the Fraser Valley Real Estate Board, results varied widely depending on the community and property type. Sukh Sidhu observes, “I can’t remember a year that illustrates better how local real estate is and the importance of talking to your REALTOR® before making a decision to buy or sell. For example, in my community of Abbotsford, sales of single family homes dropped by almost 7 per cent compared to 2010, pushing prices down slightly, while in South Surrey/White Rock sales increased year over year by 45 per cent resulting in double-digit price increases.”
The Board’s Multiple Listing Service® processed 15,529 sales in 2011 compared to 14,891 the previous year, an increase of 4 per cent, while the number of new listings remained about the same – 31,592 in 2011 compared to 31,437 in 2010. Over the year, the number of active listings for buyers to choose from dropped by 9 per cent going from 8,139 properties in December 2010 to 7,399 in December 2011. Although 2011 ranks the third slowest year for sales in Fraser Valley since 2002, it was only 10 per cent less than the 10-year average of 17,210 sales. The volume of new listings received in 2011 was 6 per cent more than the 10-year average of 29,867 new listings, placing last year third in ranking since 2002. Sidhu adds, “One trend from 2011 that is clear was the preference for single family homes. For the most part in our region, both sales and prices of townhomes and condos either stayed on par with 2010 or decreased.” In December, the benchmark price of a detached home in the Fraser Valley was $522,998, an increase of 3.3 per cent compared to $506,145 in December 2010 and a decrease of 1.7 per cent compared to November. For townhouses, the benchmark price in December was $315,330, a decrease of 2.1 per cent compared to the same month last year when it was $322,054 and down 3.8 per cent compared to November. The benchmark price of apartments in December was $237,285, a decrease of 1.2 per cent compared to December 2010 and a decrease of 0.5 per cent compared to November. Average prices year over year show detached homes up 9.1 per cent – $610,269 in 2011 compared to $559,456 in 2010. The average price of townhomes increased by 2.6 per cent, going from $336,484 in 2010 to $345,138 in 2011 and the average price of apartments increased by 0.9 per cent going from $223,910 in 2010 to $225,976 in 2011. |
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