Welcome to 2017!

The most frequent comments that I hear this time of year is; “Wow, you must have had a great year!” This is quickly followed by, “what’s your prediction for 2017?”

Yes 2016 was a busy year. A very busy year. The highest number of transactions ever recorded by the Fraser Valley Real Estate Board.

Here are a few stats regarding the Abbotsford residential detached market (houses). Chilliwack, Mission & Langley saw similar trends.

  • Supply/demand ratio peaked in March
  • The number of transactions peaked in April
  • Prices peaked in August
  • The froth (crazy bidding wars, etc.) has mostly disappeared from the market
  • Prices have eased slightly but remain higher than last year.

 

So how does 2017 look?

  • The supply of active listings vs sales is remaining low. If the inventory growth doesn’t outpace the demand prices should remain stable.
  • Mortgage rates remain low and are likely to remain low for some time.
  • BC has the strongest economy in Canada and is likely to remain a leader.
  • Foreign investment has decreased in the GVRD but domestic demand remains strong. Some experts anticipate a resurgence of foreign investment. Not my area of expertise.
  • Trump is a wild card. BC is less dependant on trade with the US than Ontario and others. I’m not an expert on Trump – nobody is.
  • The supply of new ground oriented housing is low and will remain low due to a limited supply of development land west of Abbotsford. Industrial land is facing similar pressure.

I don’t make predictions but people want to live here, Is there a better place in Canada? Combine the demand with limited supply and prices are not likely to make a significant and sustained move downward. This may be a buying opportunity?

Published by

Paul Penner

Paul Penner has long been recognized as one of the top Realtors in the Fraser Valley. As an industry leader he has been published numerous times in print media and has also appeared on various television news casts. If you have any questions regarding commercial or residential real estate in Abbotsford, Mission, Chilliwack or any other region within the Fraser Valley do not hesitate to call Paul Penner at RE/MAX Little Oak Realty.