Beating January 2005’s Multiple Listings Service numbers ‘a great start’
Derrick Penner
Sun
Fraser Valley realtors recorded their third-best January sales month, racking up 1,165 Multiple Listing Service recorded transactions, 38-per-cent higher than the same month last year, the Fraser Valley Real Estate Board reported Thursday.
January’s sales were lower than December’s 1,218 MLS sales, however Jake Siemens, president of the Fraser Valley Real Estate board, said that January’s drop is the “typical market trend,” and he considers beating the January 2005 sales results to be “a great start.”
“In December, experts forecasted more moderation for the year ahead,” Siemens said in a news release. “So far, that’s not the case for the Fraser Valley.”
Siemens was surprised, but not concerned, to see a dramatic increase in new listings in January. Some 2,127 homeowners put their properties on the market in January, up 84.5 per cent from December, giving the Valley an inventory of 4,722 homes.
“That absolutely helped the supply-and-demand issues,” Siemens said.
Fraser Valley housing values also continued to rise. The average price for a single-family home hit $444,471, up 26.5 per cent from January a year ago and higher than the $410,246 average recorded in December.
The average Fraser Valley townhouse sold for $260,445 in January, up 11.8 per cent from January a year ago and still marginally higher than the $259,348 average recorded in December.
And an average apartment in the Fraser Valley sold for $169,473 in January, 24.5-per-cent more than it did a year ago, and slightly more than the $168,465 average price in December.
White Rock had the most expensive real estate in the region, where the average single family home sold for $777,702, which was 49.3-per-cent higher than January, 2005, and even 25.2-per-cent higher than December.
In Surrey, the average single family home hit a price of $436,749, up 23.8 per cent from a year ago and 5.3 per cent from December.
“January has been great, but it’s not necessarily an indication of what’s going to happen for the rest of the year,” Siemens said.
For the rest of the year, Canada Mortgage and Housing Corp. analyst Cameron Muir said Fraser Valley markets should see price gains slow as listing activity continues to rise.
Muir said it is not surprising to see higher sales in the Fraser Valley because affordability “is becoming increasingly important in the marketplace,” and the Fraser Valley “is increasing being seen as an affordable option.”
Muir added that some of the January buyers may have been drawn into the market to beat mortgage interest-rate increases that are expected to take hold later in the year.
Muir was also not surprised to see more new listings hit the Fraser Valley market in January. He said CMHC is forecasting increased listing activity both in the valley and in Greater Vancouver, which is one of the factors that will slow down price gains. “It’s probably good news to see such strong listing activity as early as January,” Muir said. “I think most homebuyers would appreciate having greater selection to choose from.”
UP IN THE VALLEY:
The Fraser Valley real estate market got off to a brisk start in 2006.
+38%: Increase in unit sales in January 2006 compared to January 2005.
1,165: January unit sales processed on the Multiple Listing Service.
+71%: Increase in dollar value of January 2006 sales compared to January 2005.
$428,455,291: Dollar value of January 2006 sales, up from $250,131,033 in January 2005.
+26.5%: percentage increase in average price of a single-family-detached house in one year.
+$93,000: average price increase of a single-family-detached house in one year, from $351,500 to $444,771.
+11.8%: percentage increase in average price of townhouses, up just over $27,500 to $260,445.
Source: Fraser Valley Real Estate Board
© The Vancouver Sun 2006
