(Surrey, BC) – Fraser Valley buyers and sellers continued to take a holiday from the real estate market in August with the region’s Multiple Listing Service (MLS®) showing a decrease in sales, new listings and overall inventory compared to July.
The Fraser Valley Real Estate Board (FVREB) processed 997 sales on its MLS® in August, a decrease of 44% compared to the 1,786 sales during the same month last year and 9% fewer than in July, however 10% more than the 910 sales in August 2008.

“In August, sellers in the Fraser Valley took as much of a break as buyers.  Even with our slowdown in sales, we’re seeing inventory edge lower. Since May, we’ve seen our volume of active listings decrease by 10%.”

The Fraser Valley Board posted 11% fewer new listings in August compared to the previous month, the fourth month in a row of declining new inventory. At the end of August, the total active inventory was 10,287, 5% less than in July, however still 14.5% more than the selection available in August 2009.
“Our selection of homes is healthy, interest rates remain historically low and prices are moderating, which represent excellent conditions for buyers. We’re currently seeing residential prices edge down month-over-month, but remain 4.7% higher than they were a year ago.”

The benchmark price for Fraser Valley detached homes in August was $510,107, down 0.1% compared to that of July and 5.4% compared to $483,839 in August 2009. The benchmark price of Fraser Valley townhouses in August was $324,485, a 0.4% decrease compared to July and with a 4.5% increase compared to that in August 2009 when it was $310,389.
The benchmark price of apartments decreased by 1.9% from July and increased 1.5% year-overyear going from $236,146 in August 2009 to $239,659 in August 2010.

(Surrey, BC)– The Fraser Valley Real Estate Board (FVREB) processed 1,101 sales on its Multiple Listing Service (MLS®) in July, a decrease of 47 per cent compared to the 2,089 sales during the same month last year and down 39 per cent compared to June.  “Last year, we experienced the busiest July in our history and this year it was the quietest in a decade.  Although the real estate market typically slows in the summer months, we didn’t anticipate this level of change.   We attribute it to a combination of factors, the beautiful weather, interest rates edging up and reaction to the Harmonized Sales Tax in BC – although the HST does not apply to resale housing, not everyone knows that.” 

In July, Fraser Valley’s MLS® received 25 per cent fewer new listings, 2,355, compared to the 3,153 new listings received in June. At month’s end, the total active inventory was 10,852, 14 per cent more than was available in July 2009, however 2 per cent fewer than in June. 

For the first time since January 2009, benchmark prices for the three main residential property types: single family homes, townhomes and condos, decreased compared to the previous month. The benchmark price for Fraser Valley detached homes in July was $510,470, down 1.5 per cent compared to June and 6.9 per cent higher compared to $477,420 in July 2009.  The benchmark price of Fraser Valley townhouses in July was $325,856, a 0.7 per cent decrease compared to June and a 6.9 per cent increase compared to July 2009 when it was $304,940. The benchmark price of apartments decreased by 0.8 per cent from June and increased 4.4 per cent year-overyear going from $234,178 in July 2009 to $244,368 in July 2010.

(Surrey, BC) – Sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) increased by 23 % in one month going from 1,477 sales in May to 1,815 in June. June’s numbers represent an 8 % decrease compared to the 1,982 sales during the same month last year. 

“Historically, it’s not unusual for June sales to outperform May in the Fraser Valley. This has happened in nine of the last twenty years.  However, a 23% increase in one month is significant. We were busier than expected and it could be due to the combined effect of mortgage rates edging down, the Harmonized Sales Tax coming into effect July 1, as well as the tremendous selection of homes available in the Fraser Valley. 

Although we’re seeing a decrease in the number of new properties coming on stream, June buyers have only had this volume of homes to choose from two other times in our history, in 1995 and 2008.”

The total active inventory on Fraser Valley’s MLS® at month’s end was 11,110, 19% more than was available in June 2009. The Board’s MLS® received 9% fewer new listings in June compared to May.   Listings typically do decrease in the summer, which will continue to stabilize the market.  Over the last few months, we’ve seen residential benchmark prices leveling. Year-over-year, price increases may still appear dramatic depending on the property type and location because at this time last year, we hadn’t yet begun our recovery phase.  In a stabilizing market, consumers know to rely on the expertise of a REALTOR® because prices are highly local and competitive. 
In June, the benchmark price for Fraser Valley detached homes was $518,355, a 9.9 % increase compared to $471,788 in June 2009.  The benchmark price of Fraser Valley townhouses in June was $328,080, a 9% increase compared to $301,103 in June 2009. The benchmark price of apartments increased by 6.6 per % year-over-year going from $231,014 in June 2009 to $246,351 in June 2010.

(Surrey, BC) – Property buyers continued to see an increase in selection while sellers faced more competition as listings grew and sales decreased on Fraser Valley’s Multiple Listing Service® (MLS®) in May.

The Fraser Valley Real Estate Board posted 1,477 sales in May, a decrease of 2 % compared to the 1,501 sales processed on the MLS® during May 2009. At the same time, the Board received 3,457 new listings, taking the number of active listings to 11,411, an increase of 14 % compared to the 10,047 listings available during May of last year. 

“May’s sales were 16 % below our ten-year average, 1,760 sales for that month. Considering how busy the market has been in the last decade that represents solid sales activity, slower yes, but steady.

“What’s changed most is the increase in inventory. The last time this many homes were available on Fraser Valley’s MLS® in May was in 1995.  Tremendous selection allows buyers the luxury to find the right home, comparison shop and gives their REALTORS® the ability to negotiate hard on their behalf.”

“For sellers, getting specific advice about home values in your local neighbourhood is crucial in a competitive market.”

In May, the benchmark price for Fraser Valley detached homes was $515,375, a 10.6 % increase compared to $465,939 in May 2009. The average number of days to sell a detached home in May was 43 days, one day faster than it was in May of last year.

The benchmark price of Fraser Valley townhouses in May was $328,295, a 10.1 %  increase compared to $298,308 in May 2009. Townhomes in May sold on average 27 days faster than they did a year ago – 39 days compared to 66 days in 2009.

The benchmark price of apartments increased by 8.6 % year-over-year going from $232,170 in May 2009 to $252,221 in May 2010. The average days to sell in May for apartments in the Fraser Valley was 51 compared to 69 days during the same month last year.

April Current Market Trends

 The Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) saw close to record levels of listings in April, in addition to strong sales and prices.
“his is a typical, healthy spring market for the Fraser Valley. We received an abundance of new listings in all price categories giving buyers tremendous opportunity, while sellers saw a typical detached home sell in an average of 40 days for 13% more than in April of last year.”
The Fraser Valley Real Estate Board received 3,760 new listings in April compared to 2,477 new listings received during the same month last year, an increase of 51.8%. The new inventory increased the number of active listings to the second highest April on record, reaching 10,635, with only April 1995, at 11,891, offering more selection.
Along with the surge in listings, April sales remained strong, similar to the same month in 2007 and 2008.  This years April ending with 1,793 total units sold, an increase of 38.7% compared to the 1,293 sales sold in April of last year when the market was just beginning to recover.
“A number of factors are motivating buyers. Spring is one of the most popular times of year to house hunt, plus interest rates are edging up and buyers are inquiring about the upcoming Harmonized Sales Tax in BC.”
“The Fraser Valley will offer savings when the HST comes into effect because many new homes in our region fall under the new housing rebate threshold.”
Thanks to lobbying efforts by REALTORS® and other housing industry advocates, the threshold to receive the max. BC new housing rebate was increased to $525,000 from $400,000, the government’s original  limit. Horn says, “It’s important for buyers to know that the majority of new town homes and apartments in the Fraser Valley cost less than $525,000, including some single family detached homes.”
In April, the benchmark price for Fraser Valley detached homes was $520,423  reflecting all residential sales on the MLS®, of which approx. 10% were new homes. Benchmark price is 13.1% higher than it was in April 2009, when it was $460,229.
The benchmark price of Fraser Valley townhouses in April was $326,367, a 10.6% increase compared to $295,078 in April 2009. The benchmark price of apartments increased by 8.3% going from $230,337 in April 2009 to $249,453 in April2010.

 With plenty of selection and relatively modest price increases, buyers are enjoying a healthy spring market in the Fraser Valley. The Board’s Multiple Listing Service® (MLS®) recorded 1,565 sales in March, an increase of 30 % over February’s sales and an increase of 56 % over the 1,006 sales processed March of last year.
“March sales volumes can fluctuate as much as the weather, and this year’s reached the mid-point between the highs and lows seen over the last decade.”
“However, available listings were near the peak, meaning buyers had lots to choose from and were clearly taking advantage of it.”
There were 3,395 new listings entered onto the MLS® in March, slightly higher than in March 2009, when 3,028 new listings were added. Altogether, there were 9,828 active listings on the MLS® at the end of March, on par with the 9,832 active listings one year ago.
The ratio of sales compared to active listings, which indicates the type of market, reached 16 % in March, representing a buyer’s market. This is up from last year’s 10 % but a far cry from the 25 % ratio in March 2007, when the Fraser Valley was in a seller’s market.
“Prices are closing in on the record highs we last saw in spring 2008, so it’s no surprise to see the increase in listings as sellers position themselves to move up or downsize into a smaller residence using their home equity for their purchase.”
In March, the benchmark price for Fraser Valley detached homes was $514,787, an increase of 11.9 % from the March 2009 price of $459,841.  The benchmark price of Fraser Valley townhouses in March was $326,307, a 10.3 % increase compared to $295,809 in March 2009. The benchmark price of apartments increased by 8.6 % year-over-year going from $227,188 in March 2009 to $246,673 in March 2010.

I know there is a great amount of confusion going on about the new mortgage insurance guidelines coming into place, so here is a brief explanation for you, and if you have any work associates or clients that need this information, please feel free to forward it on.

BANK OF CANADA CHANGES

Qualifying Rate – For new applications received on or after April 19th, the qualifying rate will be changed for all Variable rate terms, as well as 1-4  year fixed rate terms.  The new qualifying rate for those terms will be the chartered bank’s 5 year posted rate.  5 year fixed rate terms or longer fixed rate terms will be qualified at the actual contract rate given to the client (which is the lender’s discounted rate).

Self Employed Stated Income–

- Income qualifying - CMHC feels that clients who have been self employed for more than 3 years should be able to produce adequate tax returns and financials to fully income qualify using the income declared to CRA (line 150).  Therefore, effective on all new applications received on or after April 9th, CMHC will only be accepting stated income applications for clients that are LESS than 3 years business for self.  This is because these clients don’t typically have 2 full years completed tax returns yet, so they aren’t able to fully income qualify with a 2 year average.  If they are less than 2 years BFS, the client will need to have had employment in the exact same line of work previously.

- Self employed borrowers,without traditional income verification, must put 10% down payment on purchases, the maximum loan to value (LTV) is 90% on a purchase or when porting a mortgage, previously 95% LTV.

- And refinancing maximum is 85% LTV, previously 90% LTV.

CMHC ONLY CHANGES into affect April 9, 2010. (Genworth and AIG have yet to jump on board this change)

• An 80% rental offset is no longer allowed in the TDS calculation (used to help borrowers qualify) if the subject property is generating rental income. 50% of the gross rental income can form part of the borrowers gross annual income, this works out to be MUCH less than the previous 80% offset used by CMHC.
• Rental income from other properties can be used, but must be verified with T1 Generals and NOAs. You can only gross up the net rental income by 15%.

**For further details please see the two attachments straight from CMHC on the new guidelines set out by the Bank of Canada**

If you have any questions or concerns, feel free to respond to this email and I’ll do my best to clear up any further confusions.

Good luck with the new guidelines!

Not even the most engaging Olympics in Canadian history could completely slow the appetite for house hunting, according to the most recent statistics from the Fraser Valley Real Estate Board.
The Board’s Multiple Listing Service® (MLS®) recorded 1,204 sales in February, an increase of 23 % over January’s sales and an increase of 77 % over the 682 sales during February of last year.
 “Although the phones were quieter and we did experience less traffic at open houses, we were surprisingly busy given how much everyone, including REALTORS® were enjoying the Games.”
“Buyers are aware of two key changes that could impact their purchasing ability. The new mortgage rules coming in April, plus the Harmonized Sales Tax in July, so the ‘Olympic effect’ we were expecting wasn’t as deep.”
The Board’s MLS® received 2,879 new listings in February, an average of 144 per business day, providing buyers with 14 % more selection than they had the previous month. The number of active listings in February was 8,485, 12 % fewer than were available during February last year.  
The combined strength of listings and sales currently is stabilizing Fraser Valley home prices. “Overall, we’ve seen modest price gains for the last three months. The benchmark price for all residential types combined increased less than % from January to February.
“When you have a healthy level of inventory, it puts less upward pressure on prices and creates a stable, balanced market.”
In February, the benchmark price for Fraser Valley detached homes was $508,136, an increase of 11.3 per cent from the February 2009 price of $456,683.
The benchmark price of Fraser Valley townhouses in February was $324,708, a 9.8 $ increase compared to $295,731 in February 2009. The benchmark price of apartments increased by 7.8 % year-over-year going from $228,091 in February 2009 to $245,879 in February 2010.

I have received a number of Panic Calls from clients with regard to Flaherty’s announcement this morning—DO NOT PANIC. There was nothing new in the announcement–most of what he had to say–so called new rules , are rules the mortgage industry as been working with for more than a year.

The only totally new item was in the area of refinances–where its official you cannot take out more than 90% of the equity in your house. Even this is really not new , as is has been very difficult for more than a year to take out more than 90% of the equity, unless you were an extremely strong applicant.

With regard to the purchase of investment and rentals–here again the rule the industry has lived by for the last year or more is 20-25% down.

So theres nothing really new in any of this–simply acknowledging the rules all ready in place.