Fraser Valley Real Estate Market Update

In this issue:

The Latest Real Estate Market Update
Fraser Valley Real Estate Board Statistics and Information
Home Financing Journal

Langley Real Estate Market Update

May, 2012

If you have a real estate question that needs to be answered in a hurry, or have a house-related issue that requires professional advice, I would be happy to help you. Whether you want some reliable, up-to-date information on the residential market, or you're just curious about how your home might stack up against neighbourhood listings, remember I'm just a call away.

No matter what it is, if it has to do with the house and home, I'm available to assist you.

Rosemary

The Principles of Pricing Your Home

Wondering how much your house would sell for in today's market?

To find out, you'll need answers to these three questions:

How much have similar houses in your neighbourhood sold for recently? Review sales in your area over the past six months as well as homes currently listed. This information will give you a clearer idea of what the market is willing to pay.

What desirable special features and upgrades does your home have to offer? Home buyers are willing to pay a premium for hardwood floors, larger kitchens, bigger closets, renovated washrooms and finished basements. Depending on market conditions, these features may allow you to increase your selling price a few percentage points.

Does your house have any undesirable features? Be brutally honest. If your house has just one washroom, or backs onto a busy highway, or has some creaks in the floors, then you might have to reduce your price expectations by a few points.

You might be surprised by what you could get for your house in today's market. To find out more, call today.

Understanding The Psychology of Clutter

Read any Top 10 list of things to do to prepare your house for sale and "Get rid of the clutter" is sure to be on it.

But how important is cleaning up really? Does your home have to look immaculate, like it's been torn from the page of a decorating magazine? Can't the average buyer look past a little clutter and see the value of your home for what it really is?

The answer lies in psychology.

Clutter - a disorganized garage, an overstuffed closet, a disheveled basement - can make people feel uneasy and even edgy. In a study published in the Journal of Family Psychology, clutter was even linked to depression.

In addition, clutter can create a feeling of hesitancy, even inertia. "At the sight of clutter people shut down," says organization expert Cathy Philips. "They don't want to do anything". But you want a home buyer to do something - make you an offer!

Clutter can also draw attention to the wrong things. Instead of a big double garage, for instance, a buyer's attention may be focused instead on boxes, lawn equipment and bikes piled in the corner. Clutter can instantly turn a great selling point into a turnoff. And if all that isn't enough, clutter has the knack for making everything seem smaller. A big spacious closet can look downright claustrophobic when stuffed to the ceiling with shoes, clothes and boxes.

So don't underestimate the psychology of clutter. According to research by HomeGain, getting rid of clutter ranks as one of the best investments you can make in preparing your home for sale, averaging a 594% return on your investment.

Looking for more ways to sell your home faster and for more money? Call today.

Take the Neighbourhood For a Test Drive

When you buy a car, it's customary to take it for a spin. In fact, most people wouldn't consider making such a major purchase without a test drive.

Surprisingly however, many people buy homes without testing the neighbourhood they will be living in. A walk around the block isn't enough. To really get a feel for the area you're considering, you need to spend a couple of hours "pretending" you're a resident.

• Go shopping at the nearby shopping mall or visit the shops on a nearby street.
• Have your kids play in the neighbourhood park.
• Drop by the local school.
• Have lunch at a local restaurant.
• Go for a bike ride to explore the surrounding streets and trails.
• Have coffee at a local café.
• Visit the local community centre, fitness club, sports centre or library.
• Check out the area daycare facilities.

Investing some serious time in a neighbourhood will give you a much better idea of what it's like to live there on a day-to-day basis.

notable, quotable... quotes!

"Motivation is what gets you started. Habit is what keeps you going." - Jim Ryun

"Do what you feel in your heart to be right - for you'll be criticized anyway." - Eleanor Roosevelt

"Don't simply retire from something; have something to retire to." - Harry Emerson Fosdick

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Fraser Valley housing market remains steady; while selection continues to improve

For Immediate Release: May 2, 2012

SURREY, BC – There were 1,435 property sales processed on the Fraser Valley Real Estate Board's Multiple Listing Service® (MLS®) in April, reflecting a 5 per cent decrease compared to the 1,516 sales in April of last year, and a slight increase over the 1,412 sales in March.

In April, the Board added 7 per cent more new listings compared to one year ago, 3,134 in contrast to 2,918 in April 2011, pushing the number of properties for sale in the Fraser Valley to 10,312, the highest level since July 2010.

Scott Olson, President of the Board, says "To put it in perspective, in the last decade, April 2012 ranked second lowest for sales during that month, while new listings came in at the third highest, meaning it's a good time to be shopping for a home in the Fraser Valley because selection has only been this extensive twice.

"When you combine modest sales with normal, seasonal increases in listings it helps keep house prices in check, which is what we're seeing. Benchmark prices for all property types remain essentially unchanged from March and for townhomes and apartments, they're on par with what they were one year ago."

The benchmark price or value of a 'typical' Fraser Valley detached home as determined by the MLS® Home Price Index (MLS®HPI), increased 5.3 per cent in one year. It went from $547,800 in April 2011 to $576,600 last month.

In April, the MLS®HPI benchmark price of a Fraser Valley townhouse was $318,400, an increase of 1.9 per cent compared to $312,600 in 2011. The benchmark price of an apartment increased by 0.8 per cent year-over-year; going from $204,100 in April of last year to $205,800 in April 2012.

Olson adds, "There are a lot of different dynamics to our market right now – all depending on location, property type and price point. For example, some areas are seeing increases in sales and decreases in prices; while others are experiencing the reverse, so if you are thinking of buying or selling ask your REALTOR® to show you how your property type is fairing in the market overall and more importantly in your community.

"In particular, ask about the ratio of sales compared to the number of active listings for your home type. This is one tool we use to help our clients understand if the market for their home is tilted in favour of buyers or sellers or is in balance. Currently, Fraser Valley's overall market is balanced leaning towards buyers, however each sub-mark

Click here for the full PDF report: Full statistics package.

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Home Financing Journal

From Lori Watson, Dominion Lending Centres

The 10-year fixed-rate mortgage has generated renewed interest lately as borrowers look to lock in for the long term and enjoy the security and peace of mind this brings.

With mortgage rates at all-time lows, it turns out that fashion isn't the only thing that comes back into style! In fact, 10-year fixed mortgage rates have never looked so tempting.

Following are three key reasons to consider a 10-year mortgage term:

1. After five years, you only have to pay three months' interest to get out of the mortgage. This is currently the lowest penalty available for a fixed rate – much more attractive than facing a much higher interest rate differential (IRD) penalty!

2. If you're on a fixed income, taking advantage of a longer term fixed-rate mortgage can definitely be beneficial. Currently, with our historically low interest rates, a five-year fixed rate is around 3.19% and 10-year is around 3.89%. So, if after five years rates have risen to 4.6% or higher (which is very likely), you would have been ahead taking the current 10-year at 3.89%. Instead of guessing how much longer rates will remain at historic lows, if you're on a fixed income, you know you'll be paying the same rate for 10 years.

And, chances are, after 10 years are up, you'll be in better shape financially and have more equity in your home.

3. You don't need the equity out of your home for your next purchase as you can buy again with a 5% down payment. For instance, if you purchase with 5% down, your property would have to go up more than 25% for you to get equity to use as a down payment for a second home, which is not likely in five years. But, you can turn your current condo into a rental and buy your next home with 5% down (with a combination of savings or a gift). Rental mortgages usually require a 20% down payment, whereas primary residences typically require just 5% down. Purchasing a condo to live in until you're ready to buy another home, and then renting out the condo, is a great way to become a real estate investor without having to come up with a 20% down payment.

The return of the solid 10-year means you have options. It may not be the best option for everyone, and the market may change in a few months to make it less attractive. Let me show you how all the products apply to your specific situation to ensure you receive the best product and rate to meet your unique needs. As always, if you have questions about mortgage terms, or other mortgage- related questions, I'm here to help!

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