The Special Housing Report produced by the Fraser Valley Real Estate Board’s Communications Department takes a closer look at the factors driving the cost of housing in our communities and the range of solutions that could make housing more affordable.
So much of the research about housing affordability focuses on large urban cities while skirting past suburban and rural communities like ours in the Fraser Valley.
Published on REALTOR Link®, theSpecial Housing Report: Affordability in the Fraser Valley – Metro Vancouver, endeavours to make the connections from the national and provincial housing issues, to the towns and neighbourhoods where you live and work.
Causes and effects
The Special Housing Report explores the causes and effects of our exorbitant housing costs for individuals and families, and what first-timers are thinking about when they consider purchasing a home.
We face the facts of the low-income levels in our region relative to our cost of living, and how our affordability gap compares with other urbanized centres in Canada.
We provide a table that shows what each of the FVREB municipalities are trying to do to bring affordable housing within reach of our ever-growing populations. As people continue to flow into the Fraser Valley, many of whom are fleeing the congested, over-heated and exhausted housing markets of larger cities, we look at the implications of burgeoning growth; what it will mean for our environment, our public infrastructure, food security, and tax rates.
We review the strategies that governments and other public agencies are following to transform the housing crisis from an economic and social drawback that strangles employment and enterprise opportunities, to a sustainable, affordable way of life that benefits and supports our communities, and our dreams for a promising future.
Read and download the Special Housing Report here on REALTOR Link® and share copies with your clients.
I would like to thank all of my clients , family and friends for their continued support of my Real Estate Business with this trust and support I was able to achieve Medallion Club for the Fraser Valley Real Estate Board for both the residential and commercial real estate categories. I was also able to reach the top 1% of real estate agents for both residential and commercial real estate agents in the Fraser Valley Real Estate Board.
Our data confirms that the sales of single family homes compared to strata title homes in only five years has reversed in majority percentage.
In 2015, sales of single-family detached homes were about 61% of Fraser Valley’s residential sales while combined sales of townhomes and condos they were about 39%. Now in 2019, sales have reversed. The Combined sales of townhouses/condos is now 61% and single family homes is 39%.
Some of the factors are geographic constraints in the lower mainland, between oceans and mountains make land a scarcer and more valuable commodity. This combined with the agricultural land freeze has encouraged greater density to meet the continuing population growth.
Affordability is a large factor, the government’s mortgage stress test from early 2018 created many buyers now having to qualify for about 19-21% less home value now versus then before the stress test. Where a buyer may have qualified for a $920,000 home before they are now looking at about $700,000 to purchase their new home.
Now, your choice is to increase your down payment or look at less expensive homes which strata titled is, the fact the percentage of strata sales is growing is likely to continue. The more the population grows in the valley, the more demand for increased density will happen, even with single family lot developments this has all changed, lots are about 25 to 50% smaller in size then 10 years ago. Not only are single family lots becoming so expensive, the new culture of city planners is to want more density to accommodate growth to support the tax base.
Development land is becoming scarcer, the trend to more strata property is only going to continue as the home with the big lot becomes scarcer the pressure on their value will go up.
It’s that time again Abbotsford and Mission, so buckle up and hang on. We are about to visit the future with our time travel report. Our crystal ball uses the chart below to predict what might happen. If you are hoping for prices to rise look for our RED indicator in the report below.
I have put this report together with the help of Homelife Glenayre Realty. The chart shows the amount of sales versus the amount of listings and we publish it every month. If you wish to subscribe contact me for more info or simply follow my month newsletter: The Insider.
The percentage of monthly sales against the total inventory of listings on the market is the best way we know of to track trends. It is important to note that one month’s percentage does not indicate price changes, however, if over many months a trend develops, prices may change.
- Above 23% indicates a Seller’s Market generally.
- Below 22% indicates a Stable or Buyer’s Market generally.
I have displayed the Seller’s Market in red in the chart below for every month that hits the ‘price changing’ indicator. Traditionally December, January and February are the lowest percentages and will most commonly indicate buyer’s market. Here is an up close look at what has happened for the Month of May.
Inventory or stock refers to the goods & materials that a business holds for the ultimate purpose of resale. In our industry we sell Homes. Below is our quick charts for instant feedback on the local Abbotsford, Mission & Chilliwack markets. For other areas please call me directly.
Abbotsford, Mission &Chilliwack Housing Inventory can dictate market prices, here is a quick guide on how to read the charts below. Each city has three types of properties we monitor: Condos, Strata Townhouses, Detached Homes