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?