2015/16: A look back and a glimpse forward.

As we approach the end of 2015 it’s always interesting to look back at the past year and see what’s happened in the industry and at the same time take a look into the upcoming years forecast. 2015 started out fairly strong with a 10% increase over 2014 sales for January, coupled with a 3.5% increase on the average Fraser Valley home sale price things were looking good.

When February came along spring level sales had already hit early with an increase in sales of all property types by 21%. It was already apparent at this point that demand was going to quickly overtake inventory. March proved this with a 9 year high in sales and a 47% increase over 2014 inventory was quickly getting eaten up by active buyers. April 2015 only heated up more with sales just over 2000 units and the average sale price up $23,900 from only January!

June 2015 sales in the Fraser Valley hit a ten year high with over 2,400 units sold and an additional increase in the average selling price of detached homes of $14,300 over April.

Throughout the end of summer and also into fall/winter the market has remained strong. Detached homes still remain the strong front runners as the right home in the right area will still see multiple offers sometimes within the first day of listing, in fact a colleague of mine was writing on an east Abbotsford property today, he was one of 8 offers. As always it is typical to see a small slow down over the holidays even with a hot market sales and listings will most likely taper off a bit.

Looking forward to 2016 has already got me excited for the upcoming year. A recent Central 1 report states “The market in Vancouver is not in danger of collapsing due to high prices or overvaluation. No housing recession in Canada or elsewhere has been caused by high prices alone -- something triggers the recession and subsequent price decline, today's house prices in Vancouver are not overvalued from a long-term perspective, or for a long-term investor” Central 1 has also predicted an additional 6.1% increase through 2016 and 3.1% into 2017.

Of course the valley is always a little separated from Vancouver, with that being said though as we have seen this year the real estate related trends set in Vancouver do trickle down through the Valley.In summary I guess there are two ways to look at the market right now. Firstly, there is a strong argument that it’s a sellers’ market and with a standard thought process this is true, however, if we look at HPI benchmark price increases that 2015 delivered and the professional predictions of the upcoming year it’s probably going to prove a great time to buy as well. If you can get into the market with a solid down payment and prices do increase as predicted then your equity position on your home will only benefit.
I will be back in February of 2016 with another update which will cover how 2015 closed out and what January 2016 has brought us. Stay tuned...