VANCOUVER REAL ESTATE BOARD REPORT FOR AUGUST 2011

September 6th, 2011

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) reached 2,378 in August. This total represents an eight per cent increase compared to the 2,202 sales in August 2010, but also ranks as the third lowest total for August in the last 10 years.

“MLS® statistics continue to indicate that we’re in a balanced market,” Rosario Setticasi, REBGV president said. “However, with a sales-to-actives listings ratio of 15 per cent, Greater Vancouver is in the lower end of a balanced market and has been trending toward a buyers’ market over the past three months.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,685 in August. This represents a 24.9 per cent increase compared to August 2010 when 3,750 properties were listed for sale on the MLS® and an eight per cent decline compared to the 5,097 new listings reported in July 2011. Last month’s new listing total was the highest volume recorded for August in 16 years.

At 15,437, the total number of residential property listings on the MLS® increased 1.4 per cent in August compared to July 2011 and rose 0.1 per cent compared to this time last year.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 8.5 per cent to $625,578 in August 2011 from $576,597 in August 2010.

“Year over year, prices are up. However, in the detached home category, benchmark prices have come down slightly in each of the past two months,” Setticasi said. “It’s important for people entering the market to understand that activity can differ significantly depending on the area and property type.”

Sales of detached properties on the MLS® in August 2011 reached 1,020, an increase of 14.2 per cent from the 893 detached sales recorded in August 2010, and a 25.4 per cent decrease from the 1,367 units sold in August 2009. The benchmark price for detached properties increased 11.7 per cent from August 2010 to $888,243.

Sales of apartment properties reached 955 in August 2011, a 2.1 per cent increase compared to the 935 sales in August 2010, and a decrease of 34.8 per cent compared to the 1,464 sales in August 2009. The benchmark price of an apartment property increased 5.6 per cent from August 2010 to $407,457.

Attached property sales in August 2011 totalled 403, a 7.8 per cent increase compared to the 374 sales in August 2010, and a 33.9 per cent decrease from the 610 attached properties sold in August 2009. The benchmark price of an attached unit increased 4.5 per cent between August 2010 and 2011 to $511,433.

The real estate industry is a key economic driver in British Columbia. In 2010, 30,595 homes changed ownership in the Board’s area, generating $1.28 billion in spin-off activity and 8,567 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totaled $21 billion in 2010. The Real Estate Board of Greater Vancouver is an association representing more than 10,400 REALTORS® and their companies.

Are you looking for a good deal when purchasing a home. Don”t overlook estate sales and bank foreclosures. For a list of distressed properties go to http://www.distressedsaleguide.ca

WILL VANCOUVER HOUSE PRICES DECLINE?

August 23rd, 2011

Globe and Mail Update by Michael Babad

Published Tuesday, Aug. 16, 2011 7:31AM EDT

CREA boosts forecasts, but markets to tame
Canada’s real estate industry has slighty boosted its 2011 forecast for sales and prices given a better-than-expected second quarter. But expect things to slow down a bit going forward.

The Canadian Real Estate Association now expects housing sales of 450,800 this year, up by less than 1 per cent from 2010 but better than the slight decline it had originally forecast. However, it added in a statement today that “erosion in affordability due to higher prices has prompted a small downward revision to the outlook for sales in 2012.”

CREA said it expects the national average home price to climb 7.2 per cent this year to $363,500, largely because of the action in Vancouver and Toronto.

“The national average home price is expected to moderate in the second half of 2011, returning to normal following a heavily skewed start to the year.”

On a monthly basis, CREA reported today that sales dipped in July by 0.1 per cent from June, while prices dipped 0.3 per cent and listings rose 0.9 per cent.

“While national sales have been edging lower on a trend basis since the beginning of the year, resale prices seem to have leapt on the bandwagon,” said Toronto-Dominion Bank economist Sonya Gulati.

“This is not surprising given the two- to three-quarter lag often seen between resale activity movements and changes in resale home prices,” she said in a research note.

“Less favourable economic fundamentals, combined with new mortgage rules in place, are beginning to clip the wings of the Canadian housing market activity. With uncertainty permeating markets regarding the state of the global economic recovery, we continue to expect that real estate activity with temper over the next 18-24 months.”

Noting that the Bank of Canada isn’t expected to hike interest rates by much any time soon, Ms. Gulati said low borrowing costs will support the industry. But that only pushes back an expected “adjustment” in the market.

“With their recent build-up in housing activity and prices, Toronto and Vancouver are thought to be particularly vulnerable relative to other major markets,” she added.

“In July, we saw sales and prices stay flat or retreat in both of these two urban centres. Going forward, a correction is ripe for these cities in order to bring both markets in line with balanced territory. However, we expect such a retreat in prices and sales to be gradual in nature taking place over several quarters, with the brunt occurring in late 2012 into early 2013.”

FRASER VALLEY REMAINS THE PLACE TO BUY!

August 1st, 2011

Fraser Valley market update: Steady as she goes

CMHC is predicting Fraser Valley’s housing market overall will remain balanced for the remainder of 2011 with communities closest to Vancouver continuing to fare better than those further down the Valley.

Richard Sam, Market Analyst with the Canada Mortgage and Housing Corporation (CMHC), says Fraser Valley’s market this year has been fuelled by “a combination of lower interest rates and a desire for more affordable single family detached homes as close as possible to Vancouver.”

“It’s why we’ve seen sales of single family homes do well in Delta, South Surrey/White Rock and Langley, in addition to home prices in those communities remaining firm or rising.”

According to MLS® sales data from FVREB, sales of single family homes during the first half of 2011 compared to 2010 remained on par in North Delta, increased by 14 per cent in Langley and increased by 71 per cent in South Surrey/White Rock. Sam says Langley is still attracting first-time homebuyers; however it is high-end buyers who have been influencing the White Rock area.

In Abbotsford and Mission however, sales of single family homes from January to June in 2011 decreased by 23 per cent and 10 per cent respectively compared to the same time frame last year. Sam attributes the decreases in sales and prices in Abbotsford and Mission to higher unemployment in that region, tighter mortgage rules affecting first-time home buyers and higher inventory.

Overall, CMHC predicts Fraser Valley’s market will remain stable for the remainder of 2011 supported by positive net migration, job growth and economic diversity in the region. It forecasts MLS® sales will increase by seven per cent in 2011 compared to last year, to just over 15,000 transactions and a further three per cent in 2012, to approximately 15,500. In addition, it’s forecasting the average MLS® price in the Fraser Valley will increase by five per cent in 2011 and a further three per cent in 2012.

For the Abbotsford central metropolitan area, CMHC anticipates demand for homes will be offset by higher levels of homes listed for sale. With more selection, buyers will have more choice. As a result, there will be little movement in Abbotsford prices during the forecast period. Also, it says higher resale levels will be located in neighbourhoods within easy access to transportation routes, employment centres and retail and service amenities.

All in all - The Fraser Valley, south of the Fraser is still more affordable than Vancouver.

TOP 19 Grants & Rebates for Buyers & Home Owners

December 13th, 2010

1. Home Buyers’ Plan

Qualifying homebuyers can withdraw up to $25,000

(couples can withdraw up to $50,000) from their RRSPs for

a down payment. Homebuyers who have repaid their RRSP

may be eligible to use the program a second time. (Go to

www.cra.gc.ca, enter “Home Buyers’ Plan” in the search

box or, phone 1.800.959.8287.)

2. GST Rebate on New Homes

New homebuyers can apply for a rebate of the federal

portion of the HST (the 5% GST) if the purchase price is

less than $350,000. The rebate is up to 36% of the GST

to a maximum rebate of $6,300. There is a proportional

GST rebate for new homes costing between $350,000 and

$450,000. (Go to www.cra-arc.gc.ca, enter “RC4028” in the

search box or, call 1.800.959.8287.)

3. BC New Housing Rebate (HST)

Buyers of new or substantially renovated homes priced

up to $525,000 are eligible for a rebate of 71.43% of the

provincial portion (7% of the 12% HST) paid to a maximum

rebate of $26,250. Homes priced at $525,000+ are eligible

for a flat rebate of $26,250. (Go to http://hst.blog.gov.bc.ca/

faqs/new-housing-rebate or, call 1.800.959.8287)

4. BC New Rental Housing Rebate (HST)

Landlords buying new or substantially renovated homes

are eligible for a rebate of 71.43% of the provincial portion of

the HST, up to $26,250 per unit. (Go to http://hst.blog.gov.

bc.ca/faqs/new-housing-rebate or, call 1.800. 959.8287.)

5. Property Transfer Tax (PTT) First Time Home Buyers’

Program

Qualifying first-time buyers may be exempt from paying

the PTT of 1% on the first $200,000 and 2% on the

remainder of the purchase price of a home priced up to

$425,000. There is a proportional exemption for homes

priced up to $450,000. (Go to www.rev.gov.bc.ca/rpt or,

call 250.387.0604.)

6. First-time Home Buyers Tax Credit (HBTC)

This is a non-refundable income tax credit for qualifying

buyers of detached, attached, apartment condominiums,

mobile homes or shares in a cooperative housing corporation.

It’s calculated by multiplying the lowest personal

income tax rate for the year (15% in 2009) by $5,000. For

2009, the maximum credit was $750. (Go to www.cra-arc.

gc.ca/hbtc or, call 1.800.959.8281.)

7. BC Home Owner Grant

Reduces school property taxes by up to $570 on properties

with an assessed value up to $1,050,000.

For 2010, the basic grant is reduced by $5 for each

$1,000 of value over $1,050,000, and eliminated on homes

assessed at $1,164,000+. An additional grant reduces property

tax by a further $275 for a total of $845 for seniors,

veterans and the disabled. This is reduced by $5 for each

$1,000 of assessed value over $1,050,000 and eliminated

on homes assessed at $1,219,000+. (Go to www.rev.gov.

bc.ca/hog or, your municipal tax office.)

8. BC Property Tax Deferment Programs

Property Tax Deferment Program for Seniors: Qualifying

home owners aged 55+ may be eligible to defer property taxes.

Financial Hardship Property Tax Deferment Program:

Qualifying low-income home owners may be eligible to

defer property taxes.

Property Tax Deferment Program for Families with

Children: Qualifying low income home owners who financially

support children under age 18 may be eligible

to defer property taxes. (Go to www.sbr.gov.bc.ca, enter

“Property tax deferment” in the search box or, call your

municipal tax office.)

9. Canada Mortgage and Housing (CMHC) Residential

Rehabilitation Assistance Program (RRAP) Grants

This federal program provides financial aid to qualifying

low income homeowners to repair substandard housing.

Eligible repairs include heating, structural, electrical,

plumbing and fire safety. Grants are available for seniors,

persons with disabilities, owners of rental properties and

for the creation of secondary and garden suites. (Go to

www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm,

or, call 1.800.668.2642 or 604.873.7408.)

10. CMHC Mortgage Loan Insurance Premium Refund

Provides homebuyers with CMHC mortgage insurance,

a 10% premium refund and possible extended amortization

without surcharge when buyers purchase an energy

efficient home or make energy savings renovations. (Go

to www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno

or, call 604.731.5733.)

11. LiveSmart BC: Efficiency Incentive Program

Homeowners improving the energy efficiency of their

homes who hire a certified energy advisor may qualify for

cash incentives through this provincial program provided in

partnership with Terasen Gas, BC Hydro, and FortisBC.(Go

to www.livesmartbc.ca/rebates or, call 1.866.430.8765.)

12. BC Residential Energy Credit

Homeowners and residential landlords buying heating fuel

receive a BC government point-of-sale rebate on utility bills

equal to the provincial component of the HST. (Go to http://

hst.blog.gov.bc.ca/faqs/energy-credit or, call 604.660.4524.)

October 4, 2010

13. BC Hydro Appliance Rebates

Mail-in rebates of $25-$50 for purchasers of ENERGY

STAR™ clothes washers, refrigerators, dishwashers, or

freezers between June 1, 2010 and March 31, 2011, or when

funding is exhausted. (Go to www.bchydro.com/rebates_

savings/appliance_rebates.html or, call 1.800.224.9376.)

14. BC Hydro Fridge Buy-Back Program (different

from Appliance rebates)

This ongoing program rebates BC Hydro customers $30

to turn in spare fridges measuring 10-24 cubic feet in working

condition. (Go to www.bchydro.com/rebates_savings/

fridge_buy_back.html or, call 604.881.4357.)

15. BC Hydro Mail-in Rebates/Savings Coupons

BC Hydro offers rebates including 10% off an ENERGY

STAR™ cordless phone; 50% off an E2TM dual-flush

toilet; $15 off a clothes drying rack; and 50% off Earth

Massage showerheads. Check for deadlines. (Go to www.

bchydro.com/rebates_savings/coupons.html or, call

1.800.224.9376.)

16. Terasen Gas Rebate program

Rebates for homeowners include a $25 gift cards for

furnace servicing; $50 rebates for upgrading a water

heater; $150 rebate on an EnerChoice fireplace; $1,000

rebate for switching to natural gas and installing an ENERGY

STAR heating system. (Go to www.terasengas.

com/homes/offers/lowermainlandsquamish.html or, call

1.888.224.2710.)

17. SolarBC Incentives

Contractors will provide homeowners buying a solar hot

water system with a $2,000 discount at the point of sale

until December 31, 2010. (Go to www.solarbc.ca/learn/

incentives-costs or, call 1.866.650.6527.)

18. RBC Energy-Saver Mortgage

Homeowners who have a home energy efficient audit

within 90 days of receiving an RBC Energy SaverTM

Mortgage may qualify for a $300 rebate credited to their

RBC account. (Go to www.rbcroyalbank.com/products/

mortgages/energy-saver-mortgage.html or, call

1.800.769.2511.)

19. Vancity Green Building Grant

In partnership with the Real Estate Foundation of BC,

Vancity grants up to $50,000 each to qualifying charities,

not-for-profit organizations and co-operatives for building

renovations/retrofits, regulatory changes to advance green

building development, and education to increase the use

of green building strategies.

Adapted from REBGV’s The Open House August 13, 2010.

TAKE ADVANTAGE OF THESE REBATES BUT WITH

INTEREST RATES AS LOW AS THEY ARE MAYBE

NOW IS THE TIME TO INVEST IN GREAT REAL

ESTATE DEALS – BUY AN ESTATE SALE OR A BANK

FORECLOSURE PROPERTY - FREE HOT LIST WITH

PICS AND ADDRESSES

CLICK THE LINK BELOW

HTTP://WWW.DISTRESSEDSALEGUIDE.CA

MORTGAGE PRE-APPROVALS

December 4th, 2010

PRE-Approval

by Kay Hendrickson, REALTOR^®

“My first year as a Realtor^® I found ‘Mary’ or she found me! She came to me ‘pre-qualified’ and ready to find a home. Her price range was in the low 70′s, which by itself isn’t too big a problem in our area if you want a fixer upper. She didn’t.

Long story short, we looked at probably 30 properties or more over a 6 month period. She always found something wrong with the home (well duh look at the price!). I finally managed to find her the house almost of her dreams.

It was one bedroom smaller than she wanted but was in great condition and in a decent area. The owner had already moved away and was anxious to sell. He accepted her offer and low and behold she couldn’t get financing! It seems she had a foreclosure on her record from a divorce! Lesson here, pre-qualifying doesn’t cut it. Get ‘Pre-Approval.’ Then you won’t waste time and money on your own ‘Mary’ like I did.”

Rowan Smith from The Mortgage Centre explains

So, what is a pre-approval?

A pre approval is JUST the lender taking a cursory look at application, as it stands, and saying, “IF, the documents that you provide us later on, when we review them” (because they NEVER review them for a pre approval – that’s our job as brokers is to make sure your paperwork says what you’re telling us it says – very commonly a client will say they make $60,000 per year and they have been on the job for maybe 11 months, and truth be told, when we look at their paystubs they are on pace for about $60,000. When we get the job letter, it may show $35,000 base salary with bonuses or overtime or commissions or what not. Because you’ve got only 11 months of track record, you won’t be able to use that bonus money. You’re going to need to use a two year average. Now, if you weren’t making $60,000 beforehand, you can see how that average could be maybe misrepresentative of your real value or your real income but IT’S WHAT THE BANKS WILL USE WHEN QUALIFYING YOU.)

So, when you get a pre approval , what differs with me versus another broker or your bank is that I WILL UNDERWRITE the file. I will look at all of your documentation up front. I will insist that you provide me with job letter, paystub, statements of your bank account, down payment confirmation, gift letters if it is appropriate, statements from your various credit cards and loans and lines of credit. I know how the bank is going to look at it, and I can make sure that everything I provide you in my pre approval when it says “$250,000” or $265,000” so that when you actually write an offer, the bank honours that amount.

NEWS RELEASE - FraserValley - Dec 2010

December 2nd, 2010

CONSISTENT HOME SALES IN THE FRASER VALLEY SPEAK TO CONSUMER CONFIDENCE

(Surrey, BC) – For the fifth consecutive month, sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) have remained stable with November’s figures showing a modest increase over October.

“Consumers are responding to how prices have moderated in the last six months, in addition to the double dip in mortgage rates,” says Deanna Horn, Board president.

“Buyers are optimistic because of the improved economic conditions, which is why we’re seeing consistency in homes sales in the Fraser Valley.”

A total of 1,084 sales were processed on the Board’s MLS® in November, an increase of 7 per cent compared to 1,014 sales in October and a decrease of 29 per cent compared to 1,522 sales in November of last year.

The Board received the fewest number of new listings this year to date with 1,773 new properties coming on stream in November, a 17 per cent decrease from October and a 15 per cent decrease compared to November 2009. The Board finished November with 9,049 active listings, 5 per cent fewer than in October and an increase of 9 per cent compared to the 8,334 properties available in November 2009.

Horn says, “It’s not unusual to see a dip in new listings at this time of year, however the level of home-buying interest, in particular for homes priced competitively, is stronger than we expected given we’re approaching the holiday season. That combination continues to have a stabilizing effect on home prices in the Fraser Valley.”

The benchmark price for Fraser Valley detached homes in November was $504,848, down 0.2 per cent compared to October and 1.4 per cent higher compared to $497,697 in November 2009.

The benchmark price of Fraser Valley townhouses in November was $319,623, a 0.2 per cent increase compared to October and a 1.2 per cent increase compared to November 2009 when it was $315,890.

Year-over-year, the benchmark price of apartments increased 2.7 per cent going from $235,842 in November 2009 to $242,276 last month and 0.7 per cent higher compared to October 2010.

Looking for a good deal when buying your next home. Foreclosures can be a buying oppertunity.Go to http://www.distressedsaleguide.ca

OCT 2010 - FRASER VALLEY HOUSING MARKET GETTING BACK TO NORMAL

November 2nd, 2010

(Surrey, BC) – Fraser Valley’s real estate market moved towards balance in October as inventory continued to decrease and sales and prices remained stable.

A total of 1,014 sales were processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® in October, a decrease of 3 per cent compared to 1,044 sales in September and a decrease of 40 per cent compared to 1,704 sales in October of last year.

Deanna Horn, FVREB President, says, “With help from near record low mortgage rates and a steady decrease in the supply of homes, we’re getting back to what I call a ‘normal’, balanced market.

“However, sellers should be aware that demand for homes is strong, yet selective. Buyers in the Fraser Valley recognize that selection, although dropping is still generous and they’re looking for properties priced competitively. Even with carrying costs remaining stable, the affordability threshold is a factor.”

The Board received 2,125 new listings last month, a 12 per cent decrease from September and a 25 per cent decrease compared to October 2009. The Board finished October with 9,561 active listings, 4 per cent fewer than in September and an increase of 9 per cent compared to the 8,807 properties available in October 2009.

Horn adds, “When supply and demand move into balance, prices can become a real ‘sticking point’ underlining the importance of hiring a professional REALTOR® who knows your local market and can provide detailed comparisons to ensure your home is priced competitively.”

The benchmark price for Fraser Valley detached homes in October was $505,759, down 0.3 per cent compared to September and 3 per cent higher compared to $491,128 in October 2009.

The benchmark price of Fraser Valley townhouses in October was $319,058, a 0.9 per cent decrease compared to September and a 2.2 per cent increase compared to October 2009 when it was $312,339.

Year-over-year, the benchmark price of apartments increased 0.2 per cent going from $240,048 in October 2009 to $240,542 last month and 0.4 per cent higher compared to September 2010.

Why Do I Need A Realtor?

October 20th, 2010

I would imagine it’s happening more often – consumers who feel that with all the technology, they don’t really need a REALTOR®. It’s always been an issue, but odds are it will get to be even more of an issue over time.

So, you’re probably looking for meaningful explanations to answer the question: “Why do I need a REALTOR®?”

David Welch from Orlando wrote an excellent post on the subject, and the examples he uses to bring the issue home are terrific!

Real estate is not rocket science, in fact in some respects selling real estate is simple. There is however a big difference between simple and easy. Someone once told me many years ago that bull riding is simple. You keep the bull between you and the ground. It is simple, but it is not easy. Ultimately, a good Realtor’s® greatest value comes from being able to guide you safely through the sale or purchase process. The average home owner may only purchase and sell three or four houses in a lifetime. In the 13 years I have been in real estate, I have personally sold around 300 homes representing buyers and sellers. Every sale has held valuable lessons that I use to help guide my home owners and home buyers.

David Welch, a very well respected Realtor® at REMAX 2000 Rlty (Orlando) compares our job to that of an airline pilot. Our job is to get you where you want to be safely. It is not always a smooth flight, but an experienced pilot knows how to chart a safe course and when to turn on the fasten safety belts sign. Today’s real estate market has a lot of turbulence, whether you are selling or buying. For homeowners who need to sell, your Realtor® can help you understand values in your area, and can offer marketing suggestions to make your home stand out in a crowded market. We are still in a very strong buyers market in many segments, but that does not mean there are not pitfalls. A good Realtor® can help home buyers and investors get the most for their money.

You would never think to try and pilot the jet on your next trip, because there is too much at risk if you make a mistake. The pilot has logged hundreds or even thousands of hours in the cockpit and probably made the same trip many times before. Selling or buying, you should have a Realtor® that you have confidence in representing you and your interests. There is too much at risk, not to. For all the sceptics…aswer this question. Why is the sky blue?

Noteworthy is that David Welch is with Remax 2000 Realty Orlando, not to be confused with Remax 2000 Realty Guildford.

STILL A BUYERS MARKET

October 4th, 2010

News Release: October 4, 2010

September previews fall real estate market in the Fraser Valley

(Surrey, BC) – After a slowdown in July and August, the Fraser Valley Real Estate Board (FVREB) saw a modest month-over-month increase in sales on its Multiple Listing Service (MLS®) in September and a decrease in overall inventory for the fourth month in a row.

Deanna Horn, FVREB President, says, “This is the beginning of the fall market. Our sales, while lower than a typical September, are up compared to the summer and the average days to sale for single detached homes decreased slightly compared to August.”

A total of 1,044 sales were processed on FVREB’s MLS® in September, an increase of 5 per cent compared to 997 sales in August, however a decrease of 34 per cent compared to 1,590 sales in September of last year. The Board received 2,411 new listings last month, a 15 per cent increase from August, yet a 9 per cent decrease compared to September 2009. The Board finished September with 9,959 active listings, 3 per cent fewer than in August and an increase of 13 per cent compared to the 8,799 properties available in September 2009.

Horn explains, “Although consumers have 13 per cent fewer properties to look at in Fraser Valley than they did in May, it remains a buyers’ market with a healthy selection, near-record low interest rates and stable prices.

“It’s important that both buyers and sellers recognize that as long as inventory levels continue to decline, there is less downward pressure on pricing.”

The benchmark price for Fraser Valley detached homes in September was $507,429, down 0.5 per cent compared to August and 3.3 per cent higher compared to $491,404 in September 2009.

The benchmark price of Fraser Valley townhouses in September was $321,843, a 0.8 per cent decrease compared to August and a 3.1 per cent increase compared to September 2009 when it was $312,143.

Year-over-year, the benchmark price of apartments decreased 0.3 per cent going from $240,378 in September 2009 to $239,625 last month. It remained unchanged from the benchmark price in August.

MARKET COMPARISON - N0RTH & SOUTH OF THE FRASER RIVER

September 23rd, 2010

It’s not quite a “tale of two markets,” but the differences are apparent when you overlay two graphs from the Fraser Valley Real Estate Board (FVREB) and Real Estate Board of Greater Vancouver (REBGV) showing the ratio of sales to active listings over the past year.

Comparing the volume of sales to available inventory is a common market “barometre” used by industry analysts including senior economists at both the BC Real Estate Association and Canada Mortgage and Housing Corporation. FVREB also features a sales-to-actives graph comparing 10 years of data in our monthly statistical package.

When the ratio of sales to actives is in the range of 18 to 22 per cent, the market is considered balanced. When it starts to rise above 22 per cent, the market is starting to favour sellers and vice versa, buyers are in the driver’s seat when it’s below 18. Of course, there is wiggle room on either side of the balance range.

A member recently posed the question, what does our graph look like for the past 12 months only? We took that suggestion one step further to also compare it to that of Greater Vancouver.

REBGV was in a solid sellers’ market in August and September of 2009, while Fraser Valley was in balanced territory. In November and December, the differences were even more noticeable as Fraser Valley hovered on the brink of a buyers’ market, while conditions in Greater Vancouver still favoured sellers.

Both boards show the same trends of the market slowing at the beginning of 2010 followed by a quick recovery in the spring and then another downturn this past summer. Note that Fraser Valley’s market generally tends to favour buyers except for June of 2010, when the pre-HST rush inched us towards balance again.

Why the differences? Deanna Horn, FVREB President, says, “Although our two markets work in tandem, there are subtleties to each that only REALTORS® would be aware of, underlining the value for members of the public of working with their local REALTOR®.”

The two Boards’ market ePolls for the past year show that for REBGV, first-time buyers represent an average of 40 per cent of their market. In Fraser Valley, the average was 32 per cent. People moving from outside Canada represent less than three per cent on average of Fraser Valley’s market, whereas in Greater Vancouver, it’s consistently more than double at seven per cent or higher every month.

Cameron Muir, Chief Economist, BCREA, says, “Canada is an attractive place to buy because of its stability. BC gets the cream of the crop of immigrants in Canada with 55 per cent of investor migrants coming here.”

Looking forward, Muir expects to see market improvements on both sides of the Fraser River moving forward towards fall and winter: “The volatility in consumer demand characteristic of the past 24 months is expected to give way to more gradual improvement through 2011.”