MARKET UPDATE FOR JANUARY 2018:
Happy new year! As we head into 2018, let’s take a quick look back at the trends from last year in the real estate market.
November and December were busy months, although December sales did drop off a bit, as is typical for that time of year. Still, December activity was well above the 10-year average for that month.
The main change in 2017 was the pricing increase. By the end of the year we were back to a balanced market for detached homes; nonetheless, region-wide they experienced an eight percent increase year over year.
The big news was the condo and townhouse market. As people scrambled to get into something before they were priced out of the market entirely, demand drove up the price of strata properties. Region-wide, townhouse pricing was up 18 percent, and condos a whopping 26 percent. Definitely a seller’s market for them!
Let’s have a look at a couple of specific markets: the benchmark price of a typical home in Coquitlam in December was $1,282,000 (up 14 percent over the year); townhouse $662,600 (up 21.1 percent); condo $502,900 (up 33.9 percent). In Maple Ridge, benchmark for a detached home was $827,000 (up 16.8 percent); townhouse $527,500 (up 27.3 percent); condo $282,200 (up 35.5 percent).
Proportionately, prices went up more in Maple Ridge than in Coquitlam, as people from other areas of the Lower Mainland rushed to scoop up that area’s (relatively) inexpensive real estate. As a result, prices in that market are now becoming more reflective of regional pricing. We see the same trend as we head out into the Fraser Valley; prices in Mission, Abbotsford and Chilliwack are up, too.
For 2018, new developments now in the planning and construction phases will mean an increased supply of condos and townhomes. That should help to ease the demand for those properties. An increase in mortgage rates could cool the market a bit, as well as the new lending restrictions that came into effect at the beginning of the year.
If you’re planning to buy or sell this spring, I advise you to be ahead of the curve, and do it sooner rather than later. Spring typically brings more activity, so whether you’re buying or selling, that means more competition.
If I can help in any way, please let me know!