More of the same for the final quarter of the year. 2 distinct housing markets. While detached home sales have cooled considerably, condo and townhome markets are still moving briskly, many in multiple offers … many areas now being labeled “overvalued” by a recent report from the CMHC.
Demand for townhomes and apartments in the Fraser Valley have outpaced that of detached homes significantly this year. So much so, a recent report from the Canadian Mortgage and Housing Corporation (CMHC) deemed some areas of Metro Vancouver to be so over-heated they are vulnerable. According to this report, Although the vulnerability is nothing like in 2016 pricing in the communities of West Van to Pitt Meadows as well as North Delta, Langley, Surrey and White Rock has climbed too high, too fast leaving its homes overvalued.
The greatest gains seen were among apartments in North Delta and townhomes in North Surrey where pricing increased 36.3% and 32.3% year-over-year, respectively.
Contrast this with the single family home market where some areas are teetering on the brink of a buyer’s market. With critically low levels of inventory this year, pricing in this sector has been rising month-over-month. Pricing now at its peak, lack of affordability in areas like West Vancouver, Richmond and White Rock has resulted in a dramatic slowing of demand.
Thus the divide between these 2 markets continues to widen. These stats will knock your socks off …
As of October, Surrey-Cloverdale registered the following Benchmark Prices:
Detached homes: 1,000,900 !!
And for South Surrey White Rock:
Detached homes: $1,489,600 !!
So what does all this mean for 2018? The CMHC predicts the housing market will continue to drive at 2 speeds with greater activity in the attached housing sector. Detached homes are told to prepare for a decrease of sales, rising inventory and significantly reduced prices.
You can read the full report here: https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2017/2017-10-26-1200.cfm
Another great resource for stats and forecasts can be found at the British Columbia Real Estate Association: http://www.bcrea.bc.ca/news-and-publications/news-room/news-releases
So for now, depending on what or where you are buying or selling expect your experience to be very different. If you are planning a 2017/18 move, we can help mitigate this gap. Call us anytime to chat about it. 604-583-2000