Well, that’s one way to start the year off with a BANG! Records were broken this January.
In fact, it was the busiest January in the history of the Fraser Valley Real Estate Board. Ever.
Over 1700 sales were processed last month! That’s an increase of 76% compared to one year ago, January 2020 – insane!!
We are in need of more supply as inventory across the valley continues to remain low and buyer demand high- toss low interest rates into this combo, and we have the perfect storm for a sellers market. Only question for a seller to ask is – where am I going to go? It is important to have a plan in place before you cash out high.
Personal Story
I had clients put forward an offer on a Walnut Grove detached property last week. In total there were 13 offers. What I couldn’t believe was that 6 of these offers were subject free. Nearly half of the Buyers were going in with no subject to financing, no home inspection, nothing! They had the bank draft in hand ready to hand in on the night offers were being taken.
We are in a competitive marketplace and I understand Buyers have to be aggressive to secure a home. However, Buyers, please make sure you have your financing in order and are hopefully putting a minimum of 20% down. If you are not, then you have to get an insured mortgage and they may not qualify you for what you want to borrow. If you go in without subject to financing and cannot complete on the sale, your deposit will be toast!
Another note people may not realize is that if the appraisal comes in below your offer price, you will have to make up the difference – hopefully you have a wealthy Aunt in the family!!
Predictions*
My prediction moving forward is that the condo market will start to heat up 🔥 Over the last year, condos have been the only style of home that hasn’t been in high demand. In my opinion, this was partly due to two factors:
1) The rising strata insurance deductibles & premiums which attributed to higher strata fees.
2) Investors selling off their condos to avoid potential loss of rents from tenants who were told they did not have to pay rent if they were feeling the financial affects of covid = high levels of condo supply.
All that said, with the rising prices of townhomes, I can see a lot of people moving towards purchasing a condo instead.
Questions? Call, text or email me.
* Predictions only, I (unfortunately) don’t have a crystal ball
Benchmark Prices Across the Valley
- Single Family Detached: $1,106,500, An increase of 2.5 per cent compared to December 2020 and increased 15.2 per cent compared to January 2020.
- Townhomes: $580,800, an increased 0.8 per cent compared to December 2020 and increased 7.2 per cent compared to January 2020.
- Apartments: $439,800, an FVREB apartment/condo increased 0.3 per cent compared to December 2020 and increased 4.4 per cent compared to January 2020.
