Comparing Real Estate Markets Within the Fraser Valley
Hi folks. I just wanted to share some observations I thought might be of interest to some of you . A trend I’m seeing in real estate is people in the Fraser Valley moving one or two communities eastward. This is for a number of reasons. Often to get more home for their money, reduce mortgage payments or even make it easier to qualify for a home that suits their needs better. For those of you who would like to see how home values compare across the region or (like me) you find real estate statistics absolutely riveting, or even mildly interesting, you might enjoy a quick peek at the following PDF http://fvreb.bc.ca/statistics/Package201904.pdf
provided by the Fraser Valley Real Estate Board. I recommend pages 3 -5. You’ll find the number of sales, new listings, active inventory and current prices for the three main residential housing types in every community. One thing that might catch your eye is that there isn’t just one price, there are three. They’re all valuable and I’ll explain why.
The Benchmark price is what a ‘typical’ home is worth – ‘typical’ meaning homes that have features common to that community.
The Median price is the middle price of all the sales – if you put them in a list from the lowest price to the highest, the median price is the one right in the middle.
Finally there is the Average price, the one people are the most familiar with, which is the total dollar value of everything sold divided by the number of sales.
It’s worth comparing all three. If the average is unusually high, it means it could be skewed by one or two really expensive homes selling (or the reverse). If the median is on the low end, it suggests that more economically priced homes are selling. And a good reference point for all property types is to look at the year-over-year change in Benchmark price. Every month, the MLS® Home Price Index (HPI) measures the change in value of the ‘typical’, constant-quality home, giving an accurate gauge of what’s happening to home prices in general. You’ll note, that in general, they’re down 5% to 6% compared to April of 2018, but have plateaued in the last month.
So hopefully this will be of some help for those who would like to stay market savvy. Stay tuned for more posts as I come across items I think might interest you . Have a great day . Jim Verwoerd - Sutton Group Westcoast Realty