To help in the “refresh department”  we took a brief vacation to San Jose del Cabo Baja Mexico … if you have never been and you like a sleepier, more authentic Mexican experience this is the town for you!  For us it was all about the food, the art and the sunshine!  If interested you can check out our pics at  http://www.facebook.com/ffostje?sk=photos  and while you are there don’t forget to LIKE our business page http://www.facebook.com/jennandcolinrealestate

The Real Estate Markets really held up over 2011 and all things considered and the outlook for 2012 could be a lot worse.  According to CMHC the official forecast is for Metro Vancouver sales to rise 9% with the overall home price to increase 2.2% from 2011 to $805,000.  There are however many other evaluations for the coming year but the general trend appears to be more of the same (nothing dramatic)  and/or a general slowing over all regions and product types. 

As it was over the course of 2011 the biggest risk to our housing market will continue to be the economy.  Global hazards like the financial crisis in Europe and local hazards like the unemployment rate at 7.7% and low consumer confidence regarding debt load are still lingering.  “The elephant next door” although having seen some recovery is still dealing with the foreclosure crisis with another wave of four million foreclosures expected over the next three years.  In addition the frigid mortgage industry in the US  is having a large impact on viable home purchases.  According to L. Yun the National Association of Realtors head economist “… one out of every three transaction in the US don’t close or don’t close on time due to the myriad of conditions that buyers must meet”.

Back here in BC the national housing agency is predicting moderate growth and demand for new and resale homes in the lower mainland because of the region’s growing population.  According to Stats Canada seven out of 10 foreign born residents choose to live in Toronto, Metro Vancouver or Montreal.  Good schools, the good climate, well established Asian communities (south Asian in surrey) and immigration policy are all attractive to foreign buyers including this last “third wave” of buyers from mainland China who ignited the Real Estate Markets on Vancouver’s west side, Richmond, Coquitlam, South Surrey, White Rock and West Vancouver.

Two key growth communities this year will continue to be Surrey and Vancouver attracting immigrants from Hong Kong, Taiwan, mainland China and south Asia but this foreign demand is expected to moderate into balance this year.  But interesting to note, the average home price in the Fraser Valley increased by 12% in the last year - but if you exclude White Rock/South Surrey that increase drops to 3% !