Are you Considering Exploring the Real Estate Market in 2017? Here is what you need to know.
In BC home sales are returning to their historic averages with the average sale price of a home in December contracting 17.5% to $621,093 from a year ago. These stats also show a 5% month over month contraction in 2016 from August to December.
As we noted in our Year in Review blog Post there are many factors that sparked the downward shift in local and provincial markets. In addition to those, in the last 8 years the federal government has made 6 rounds of tighter lending rules in an effort to reduce risk.
Although consumer demand is expected to be somewhat limited … housing demand is expected to remain well above long term averages.
According to Cameron Muir the chief economist of the BCREA “Solid fundamentals continue to underpin housing demand in the province.” He goes on to cite international trade, and population growth - specifically net migration. Ie: In the first 3 quarters of 2016 BC saw the highest levels of migration since 2008, 50,000 people. A 50% increase from the previous year.
In the BCREAS most recent report the Fraser Valley is expecting sales volumes to drop 14.7% for the 2017 year and an additional 4.1% decline moving into 2018. Across BC – Fraser Valley, Victoria, Vancouver Island and Chilliwack - sales volumes are expected to drop 14.1%
But, prices in the Fraser valley ... are only expected to drop 3% in 2017 with a 2% recovery in 2018!
While sales and pricing are always area specific - and Surrey, South Surrey, Sullivan/Panorama will not be insulated from the sales and pricing corrections noted above - we anticipate market conditions will continue to bend in favor of home sellers.
This means solid conditions in 2017 for sellers to upsize or downsize and continued pressure for buyers to enter the market at their earliest opportunity.
Call us if you are thinking of making a move this year … we live in your hood Surrey and we want to go to work for you!