If you are planning on a new home in the near future, the time to buy or build is now.
The Canadian Mortgage and Housing Corporation released their latest housing report this week. A key point revealed within was that demand for housing in Abbotsford, Langley, North Delta, and Surrey has inflated prices at a higher rate than that in Vancouver.
The latest assessment of the first quarter of 2018 by CMHC revealed that Fraser Valley Real Estate Board (FVREB) had about 4.6 percent higher year-over-year increase in property sales compared to Real Estate Board of Greater Vancouver, (FVREB increase was 15% while Vancouver had an increase of 10.6%). The largest increase was in entry-level units.
But what does this mean for families and investors who are on the hunt for their next home?
Investors & Families Should Buy Or Build Their Next Home Before 2018 Is Over
Finding the most affordable units
According to CMHC regional analyst, Eric Bond, people are seeking out property in Fraser Valley because of the affordability in those municipalities. The price increase in the rest of the region seems to be the factor driving first-time buyers to seek out municipalities with less expensive units.
It is worth noting that the CMHC report makes clear that the Fraser Valley is no longer a place where ‘sticker shock’ can be avoided. Stats from December show the benchmark price for a townhouse went from $417,200 in 2016 to $513,100 in 2017 and Apartments increased from $276,600 in 2016 to $388,600 in 2017.
According to Bond, the price increases in these areas are pretty strong, and this is attributed to the rise in demand for affordable homes. What is not known is how long these homes will remain affordable (compared to those in the Greater Vancouver Regional District).
Listings are dropping as prices rise
The rise in price has been attributed to the low number of listings in the resale market. The report revealed that there was a 2.8 percent rise in the price of a single detached home in the Fraser Valley. The price of townhouses rose by 13.6 percent with apartments going up by 19.7 percent. If percentage increases in townhouses and apartments hold, you can expect greater percentage increases in single-family home values as well.
What this means for families and investors
For families still optimistic to own their starter or dream home, the window of opportunity might be closing if demand continues to rise and listings continue to diminish. As long as demand continues to rise and the listings continue to diminish, it is almost impossible to keep the price of the homes in these areas affordable.
Less listings = less options & higher prices
Simply put with fewer listings on the market equates to fewer options for the home buyer. No longer can you hope to keep “shopping” for a new home in hopes of finding the perfect home for your family or a long term investment. The number one reason for a custom designed and built home is the in-ability to find a home that fits the needs of the buyer available on the market.
If you chose to build a new home, your end product is something that exactly fits your needs. You decide the size and shape of every aspect of your dwelling. Throw in the latest advancements in building tech, the long term value of owning new custom home is undeniable.
If you have more questions on how to start building your next home contact Icon Projects today!