How are floods and pandemics impacting your Real Estate needs? During this conversation, we talk with Real Estate expert Mike Wilson about flood insurance, how a lack of supply impacts the market, interest rates, and new Real Estate Rules on the horizon in BC, and how they could impact you if you are selling or buying a home.
Mike Wilson
Royal LePage Northstar Realty
Web – https://fvlifestyle.com/real-estate-home/
604-538-2125
mike@fvlifestyle.com
Oh, by the way… if there is any way I can be of service to you or your family during this time, please call me. I’m happy to help you however I can in a way that is healthy and safe.
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Sincerely,
Mike Wilson
Royal LePage Northstar Realty
Web – https://fvlifestyle.com/real-estate-home/
604-538-2125
mike@fvlifestyle.com
Oh, by the way… if there is any way I can be of service to you or your family during this time, please call me. I’m happy to help you however I can in a way that is healthy and safe.
Here’s a rough transcript of our conversation about the upcoming 2021 Fraser Valley real estate market.
Rod: Hi everybody. Thanks for joining us. We’re getting a little (real estate) market update from Mike Wilson who is the publisher of Fraser Valley Lifestyle, but he also spends more of his time as a realtor in the Fraser Valley.
It’s crystal ball time. We do this a few times a year.
We get together online and try and ask you to look into your crystal ball. And look ahead as I, if I could just sum up my observation from the year, it sounds like, like from January, almost until May or June, it was a, it was a hot market and there were multiple offers and all that kind of stuff.
And then it just, it just died going into the summer, like just in terms of. Activity and you weren’t getting those multiple offer situations. So just looking back, is that a fair summation of the year? So far?
LOOKING BACK AT THE RECENT MARKET
[00:01:02] Mike: I think it really is. I mean, if you look at, and I’m going to, I have some statistical stuff, I’m just going to give some basic statistical.
So from January of 2018 through to July of 2021, we’ve had a 23% rise in actual listings. So there’s a big listing boost. What did that mean? Well, we started out that super hypermarket. We got into COVID after about six months, we didn’t have the supply. And so what happened is you, you had a huge disparity, you had far more pent-up energy.
That’s where the multiple offers came in. It had a little less supply, a lot more activity that we didn’t anticipate in before you knew you were at a, you know, we were at a depleted resource or the depleted listings what’s happening now. That happened through till to this point, right now we hit sort of the summertime.
So BC, historically, if you’re going to have a softer market, it’s going to be sort of the end of June through the end of August. And that’s a, I would draw a parallel. It doesn’t work that way through Canada, but with BC in particular, most people, you know, schools out, we have beautiful weather, beautiful scenery, lots of things to do in BC.
People do tend to take that time. So we do see a trend of that. If you’re going to see it. And we did see that this year, probably for some different reasons to add to the normal reasons, obviously COVID has presented challenges, as far as travel goes, we saw people still buying recreation vehicles and traveling within BC.
So there still was some travel which kept them going. The other thing that happened is we just simply had a marketplace where the prices were simply skyrocketing. People were in multiple offers. They weren’t getting in property, but now we’ve seen in the July markets where the balance of listings to sale ratio is balanced out much more.
What, what that did, was it allowed people to look at properties? A couple of times you’re still seeing great sales, but you had an opportunity to write on a property that you may have seen two or three times where previously during COVID. With the spike in the market. You, you know, you had to write an offer immediately and you were in a multiple scenarios now, are there still some multiple offers?
Yes, there are because we’re not getting a huge supply in all sectors. And so there are still the occasional multiple offers coming in on property, but for the most part, it’s settled in and certain components of the market. There’s more supply so there’s less of that happening. And that’s the summer market.
So a little bit more traditional. We have a little softening, although the market’s been strong enough, it certainly wasn’t comparable to the hyperinflated market that we had in the previous year. And I think that’s, that’s much healthier, obviously, you know, as a buyer, it’s a much healthier market as a seller.
You know, everybody wants to win the lottery. The reality though, is that when you’re selling and buying, there’s relativity that comes into play. So unless you are actually selling out of the market and not reinvesting this is a better market for you in that previous market. Yes. You would sell for a windfall, but you’d be back in the.
The position is a buyer was telling me when they were buying your home, you’d be in multiple scenarios. So much more level market in the summertime, I think for most places. And I’ve been in negotiating and we’ll see where the fall goes for supply. That will be interesting. Yeah.
CRYSTAL BALL TIME. WHAT’S GOING TO HAPPEN THIS FALL?
[00:04:23] Rod: So looking ahead, I know it’s impossible to know, especially with what’s going on in the world and we have an election happening and all kinds of stuff.
What, what are you seeing for the Fall (2021)?
[00:04:36] Mike: Well, you know, what, how do I come up with a, what am I, you know, how do I come up with my crystal ball? There are a few factors that I sort of throw into them. Some of them are intangible, so they’re not really trackable. Other things that we can do is we can look at CMHC reports and see where they’re trending as far as you know, more tracking.
So some of the things that CMHC is watching. We’re starting to see a little bit of a tickling up of the fixed, very fixed mortgage rates. So fixed mortgage rates have a direct bearing as far as affordability. And you know, a lot of buyers that are gotten into the market now have never been able to, they’ve never had to say the word 4%, you know, interest rate wise.
So you start to see interest rates climbing, which they could at some point. And that will have a direct bearing on the buying ability or the budget that’s available. The other thing that’s happened is with CMHC, with the affordability aspect, is there increased, they’ve increased the test, the stress test for buyers.
So that continues to be a bit of a challenge. So you’re sitting at over 5% stress test. So not everybody’s going to qualify for those funds. Now, when we talk about stress, it’s a whole other conversation. It’s a, it’s a test that you take. It doesn’t mean you have to take a 5% interest. But it is trying to slow down buyers from getting in over there.
And the other thing, that’s the component that is going to be interesting. There’s a couple of things that were coming. We were anticipating more foreign investments, so that could, you know, money coming out of the Asian markets. If it eases up with COVID with the rules that are in place, that’s one thing.
THE POTENTIAL IMPACT OF THE CANADIAN ELECTION
But the counterbalance to that now, And again, you mentioned we’re in an election month or whatever it is, you know, the Liberal government is proposing that they actually have more penalties and more restrictions on investment for non-residential primary residential. So what is that going to do? There keep the key theory is obviously is to make housing affordable for people who are actual residents.
So if the Liberal government gets in, we have that to consider, that’s going to shift the market a little. You’re going to take a buyer out of the market that would have been there. So, you know, there’s a number of variables. What’s the fourth wave you’re going to do. That’s a challenge to know. I think the fourth wave you know, it’s gonna be less of a challenge in the first three.
My hope is that I think we’ve gone a long way to getting protected from that. So that’s the hope. I would suggest that the. The other thing that comes in, which is always part of this is supply. So when we see some of these other things happening, the government protection, the interest rates will we see enough supply to satisfy the demand? Right now it’s a pretty balanced market. You’re almost 50 50 on listings to sales. Again, pretty healthy are people waiting for the fall market to put their property on? That’ll be the next question and whether or not we’re going to see. That much pent-up demand for buying is the other thing.
So, you know, again, are we going to see listings? If we don’t see a lot of listings in that it naturally will drive the market to be hot because there’s going to be enough buyers. But if we see enough listings, I think you may see the buyers soften and the 2023 analysis or the anticipated market is for it to soften.
A BRISK MARKET IN THE FALL?
So I think fall could be pretty brisk. I think going into the spring market, we may see it still. Somewhat active, good market. I think we get to this time next year or the summertime next year, you’re probably gonna see it soften again. And we may not see a strong market in the fall based on what the interest rates are doing.
REAL ESTATE CONTINUES TO BE A GREAT INVESTMENT
So I don’t see any major falls. Real estate is always a great investment. And in today’s day and age, we’ve seen it. You know, people have this vision, that real estate isn’t going to continue to go. I think that it’s proven itself through some tough times, real estate is a great investment for people.
And I think it’ll continue to rise. I think people are shifting their mindset to lifestyle a little bit more. So they’re going to spend the money on a monthly basis. They want to be in the lifestyle that they want. So I think that’s where the market will continue to drive it. And we work really hard to pay our bills.
So why not live where we want to live. And I think that’s what’s happened and will continue
QUESTIONS? GET IN TOUCH WITH MIKE
[00:08:43] Rod: Good to know. Well, Mike, how do people get in touch with you these days? And we’ll put notes in our show notes and links and all that sort of stuff, but what’s, what’s the best way to reach you?
[00:08:53] Mike: Well, we have obviously we’ve got a fantastic website at fvlifestyle.com and we would love to hear from you through there.
We have various links to what’s happening in our community. It’s a big part of what we’re trying to promote is our community and businesses. You can reach me directly at 6 0 4 8 8 9 7 6 5 3. And that can be done by text, or you can give me a call. Sometimes I have to return the calls. So texting sometimes is best.
My office is Royal LePage. I have a number 6 0 4 5 3 8 2 1 2 5. You know, it’s, we’ve almost stepped away from the office calls. We’ve almost gone to direct calls. And so, you know, it’s interesting too, that number is still out there, but it’s rare that I get a call. And then the last would be my email direct email, which is mike@fvlifestyle.com
So if you have questions, you can always send them my way. The website’s a great forum for us because it obviously allows you to ask some questions and get some information for yourself rather than feeling like you’re being chased by a real estate agent right away. So feel free to drop into our website and check out what we’re doing.
Well, obviously Rod you’re integral to that, working with that. So and then I just welcome any calls and questions, obviously. Lots of questions coming up for everybody at this time in the market. So don’t hesitate to reach out.
[00:10:12] Rod: Yeah. So just in case, people miss that it’s Mike at F V as in Victor Lifestyle.com. I had someone confused about that the other day, thinking V’s can sound like B’s, you know? Excellent. Thanks, Mike.
[00:10:24] Mike: Hey Rod. Thanks very much. Nice chatting with you. And I wish everybody luck out there and then fall market it’ll be exciting times ahead.
MAKE YOUR NEXT MOVE WITH MIKE
Mike Wilson
Royal LePage North Star Realty
Phone: 604-889-7653
Email: mike@fvlifestyle.com
Mike brings several decades of real estate experience and strong marketing background to the FV housing scene. Whether you’re looking for help finding your perfect home at your perfect price, or you need professional support and friendly expertise to sell your home in an ever-changing market, Mike comes to the table with a true passion for helping you make the best possible move.
Looking to refresh your space? These design tips have the power to totally transform any room, and they’re easy to implement!
Introduce Greenery
Plants bring new life to empty corners and shelves, while naturally improving air quality. Succulents, snake plants, and Heartleaf Philodendrons can thrive indoors with little maintenance.
DESIGN TIP No green thumb? No problem. Fake fiddle-leaf fig trees are a popular solution for filling larger spaces, while smaller potted plants fit nicely on desks, end tables, and wall shelves.
Incorporate Accent Pieces
Place accent pieces like candles, vases, or bowls on coffee tables, nightstands, and dresser tops to add a fresh new element to your space.
DESIGN TIP Give your accents depth by using different sizes and shapes in your display. For example, try pairing a tall plant next to a small bowl or vase.
Evaluate Artwork
The right wall décor can tie together separate elements of a room’s design, and in some cases, give the illusion of more space.
DESIGN TIP Can’t pick just one favourite piece? Combine framed artwork, prints, and personal photos and create a gallery wall. Try out different frames to mix it up!
Hang a Mirror
If you want to upgrade your space without a full renovation, try hanging a mirror — it will help any room feel more open and spacious.
DESIGN TIP Brighten up your space by positioning your mirror across from or close to a window to bounce natural light.
Enhance Lighting
Typically, warm light is best for winding down in the evenings, while cool, bright light keeps you energized during the day. Identify your lighting preferences and get the bulbs to match.
DESIGN TIP Place multiple light sources evenly around the room to help it feel more inviting, especially if natural light is scarce.
Take care,
Mike Wilson Royal LePage Northstar Realty 604-533-3491 mike@fvlifestyle.com
P.S. Want more ways to improve home decor? Call me for a referral to a trusted home decorator or stager.
It’s almost impossible to predict when a crisis may occur, but there are a few basic measures you can take to be prepared for unexpected weather or life events. And not to be a downer, but studies have shown that Metro Vancouver and the Fraser Valley will inevitably experience a major earthquake and tsunamis, so once and a while it’s worth considering in case of an emergency: are you prepared?
Here are several things to do to help be prepared…
KNOW YOUR EVACUATION ROUTES
These may change depending on the situation, so you’ll want an idea of the different scenarios you may face. Identify your area’s major evacuation centres.
SELECT YOUR MEETING PLACES
Set one in the neighbourhood, one in town, and one out-of-town. That way, your family can regroup if something pops up when you’re not together.
STAY CONNECTED
Sign up for emergency alerts from your local municipalities. Police Facebook and Twitter pages are great sources for real-time updates during emergencies.
ASSIGN ROLES
Discuss what each family member will handle in an emergency. For example, mom turns off the electricity and water, dad gets the important documents, kids get the pets, etc.
CONSIDER A GENERATOR
Generators will help you keep the lights on should you lose power. Some are powered by gas, others by rechargeable battery or solar.
STOCK UP
See what already you have. If the electricity goes, use the food in the fridge first before consuming nonperishables. Have at least three days’ worth of bottled water ready.
COLLECT IMPORTANT DOCUMENTS
Store physical documents like birth certificates, financial information, and family records in a fireproof or waterproof box and take it with you in an evacuation.
KEEPING YOUR PETS SAFE DURING AN EMERGENCY
If you’ve got a four-legged friend or another pet in your family, make a plan for them too! here are some items to include in your pet’s emergency kit:
3-7 days worth of food and water
Pet’s documents – Medical records and current photos (in case of separation)
Extra litter/ disposable trays
Cage liners
Extra collar, harness or leash
Travel carrier
Blankets
Garbage bags
ACCESS AN ANIMAL EMERGENCY KIT FROM HUMANE CANADA.
Includes a window sticker so rescuers know if your pet is still in the home during a rescue.
GOING TO AN EVACUATION SHELTER? LOOK FOR ONE THAT ALLOWS PETS SO YOU’RE NOT TURNED AWAY.
The Superintendent of Financial Institutions (OSFI) began hinting at changes to the stress test in Jan 2020. Those changes were put on hold as it became clear we were entering uncharted territories with a global pandemic.
Welcome to April 2021. While the pandemic is still a part of our daily lives, the real estate market has been on fire. OFSI has recently announced their new proposal for a change to our qualifying rate. The proposed change is set to come into effect on June 1.
Who will this affect?
Clients who are needing mortgage financing who have 20% (or more) down or who are looking to refinance their mortgage, will now have to qualify at a stress test rate of 5.25%.
This change will NOT affect clients who have less than 20% down. That qualifying rate will stay at 4.79% for now.
What does this mean in terms of dollar figures?
Assuming the following:
Combined family income of $130,000
Property taxes of $4,500 annually
Little to no debts in this scenario
20% down
30-year amortization
Under current rules, I could qualify this family for up to a 900,000 purchase with a 180,000 (20%) down payment.
Under the proposed new stress test of 5.25%, using the same down payment of 180,000 (will end up slightly more than 20%) this same family would only qualify for up to 860,000 purchases.
This is an overall decrease of approx. 4 – 4.5%. If you are currently house hunting, using this % will give you an approximate idea of how the new rules will affect you directly. However, it’s always best to get in touch with your mortgage professional to discuss your specific file.
Who will be the hardest hit?
Clients who will be hit hardest by these changes will be middle-class Canadian families. Those who are looking to upgrade from their starter home, have built up some equity over the last few years, and want to move into something that better suits their needs.
It will be interesting to see how lenders adjust to this new potential change. When the initial stress test rules were put in place, we did see that many lenders were looking for ways to help ease the impact of the new rules. For example, child tax benefits were now allowed to be included in our income qualification.
As well, in the past few years to mitigate this change, we have seen parents co-signing for their adult children in record numbers. We have seen more gifted down payments (early inheritances) to try and balance out the stress test changes. Families have also been selling their individual properties and merging their homes allowing young families to use their parent’s retirement income to help with qualifying power.
Adjusting to the proposed changes
With all the ways the new rules affected Canadians, we persevered and have adjusted. I have no doubt the same will happen this time.
As these changes are still ‘proposed’ there will be a lot more information to come in the upcoming weeks, but it is extremely important that you move forward as if the changes are happening. If you are currently shopping (with 20% or more down) or considering refinancing your home, it’s extremely important to connect with your mortgage broker to see how this will affect you personally.
When it comes to mortgage financing, there is no such thing as being over-prepared.
JANUARY 2021 UPDATE: Fraser Valley real estate market full steam ahead in January; another record-setter for property sales*
SURREY, BC – In a month that is usually one of the quietest in real estate, Fraser Valley’s market continued at a breakneck pace, producing the strongest January sales on record as well as a modest uptick in new listings.
The Fraser Valley Real Estate Board processed a total of 1,718 sales of all property types on its Multiple Listing Service® (MLS®) in January 2021, an increase of 76 percent compared to January 2020 and 18 percent fewer than were processed in December 2020. Sales in January set a new, record high for the month; 72 percent above the 10-year average, and 28 percent higher than the previous record of 1,338 sales set in January 2016.
“Buyers are very motivated right now,” said Chris Shields, President of the Board, “Lending rates are the lowest they’ve ever been, your housing dollar goes further in the Fraser Valley and we’ve seen a societal shift in the last year in how people value their homes. People are asking us to find them more space.
From Mike
The market continues to be very active even with COVID-19. Two factors that I like to point out about the market are:
1_ Interest rates are very low, so if you have a secure job there’s never been a cheaper time to borrow money.
2_ There is not a lot of supply right now so you need to have a solid plan in place for both selling and buying your next home. Of course, this is where my experience can help.
I’m here to help you in any way I can during these tough times. If there is anything I can do to help you and your family, please do not hesitate to reach out.
Take care,
Mike Wilson
Remax Treeland
604-533-3491
mike@fvlifestyle.com
Oh, by the way…if you know of someone who would appreciate the level of service I provide,
please call me with their name and contact information. I’ll be happy to follow up and take
great care of them in a way that is healthy and safe.
_ _ _ _ _
Here’s a look at where the Canadian market stands right now, and what you’ll want to keep an eye on moving forward.
LOW HOUSING INVENTORY
At the end of last year, tight inventory created a great market for sellers. Even if the market begins to cool, 2021 may still bring favorable conditions for sellers and a competitive market for buyers(1)
BUYER DEMAND IS INCREASING
Many millennials and renters still have plans to buy a home in the next few years(2) With interest rates hovering at historic lows, homeownership could be more affordable for many during the first mortgage term, making this the perfect time for those with a steady income to buy.
MOVING TO THE COUNTRY
At the end of last year, close to a third of Canadians 3 wanted to leave the city and move to rural or suburban communities, especially as remote work becomes more common. But those who prefer city life may be able to scoop up a recently-vacated condo(4) for a lower price as some owners leave for the country.
WE NEED MORE SPACE
Homes with extra rooms and outdoor amenities like a pool, balcony, or patio are attractive to an increasing amount of buyers looking for more living space(3) as family and work needs shift.
SHOULD YOU CONSIDER A MOVE THIS YEAR?
ARE YOU FINANCIALLY SECURE?
Yes __
No __
Somewhat __
If you have a steady stream of income and can secure a downpayment, now is a good time to enter the market, since low-interest rates will make your monthly mortgage payment more affordable. Otherwise, keep saving and revisit your search when finances are more stable.
DOES YOUR JOB ALLOW FOR EXTENDED REMOTE WORK?
Yes __
Sometimes __
Never __
Employees with a flexible work-from-home policy don’t necessarily need to live in the same place they work. This can lead to housing opportunities in areas you hadn’t previously considered.
HOW OFTEN DO YOU FIND YOURSELF NEEDING MORE SPACE?
Always __
Sometimes __
Rarely __
Most families could benefit from an extra room or two, these days. Consider upgrading this year while market conditions are solid. If you’d rather renovate your current home, call me for a referral to a trusted contractor!
ARE YOU HAPPY WITH YOUR CURRENT LOCATION?
Yes __
No __
This is the perfect time to find a great deal in your dream location. For moves locally, I’m here to help you figure out your options! If you’re trying to change cities, still give me a call — I’m part of a vast network across Canada and the United States.
Oh, by the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information. I’ll be happy to follow up and take great care of them in a way that is healthy and safe.
_ _ _ _ _
SOURCES: 1. Robert Hogue, “Monthly Housing Market Update,” RBC, October 2020 2. CIBC, “Millennials: Rent or own?” 3. RE/MAX CANADA, “Canadian Housing Market Outlook (Fall 2020)” 4. Matthew Halliday, “Canada’s big-city condo market most vulnerable to pandemic headwinds,” The Globe and Mail.
If you are planning on buying a home in the Fraser Valley you’ve come to the right place!
Whether you’re looking for help finding your perfect home at your perfect price, or you need professional support and friendly expertise to sell your home in an ever-changing market, I have a true passion for helping you make the best possible move.
Markets are changing all the time, and right now (July 2020) we’re seeing increased activity in the market compared to the early Spring despite all that is going on in the world, and some of the doom and gloom forecasts that came out earlier this for the Canadian real estate market.
To give you an example of a home that I helped sell recently see the property described below. It sold firm for $1,150,000.
Property
18018 67A AVENUE
Surrey, British Columbia V3S7H7
MLS® Number: R2475132
Description
Quality built home by Foxridge. The main floor features ten-foot high ceilings, with a twelve-foot high ceiling in the living room. Open concept floor plan. Beautiful white kitchen with shaker cabinets, quartz countertops, s/s appliances, gas stove, pantry for extra storage. Gorgeous engineered hardwood throughout the main floor. Master bedroom features a vaulted ceiling and TWO walk-in closets. 2nd bedroom also has a walk-in closet. LEGAL SUITE in the basement. Large bachelor suite with living room, full kitchen, and separate laundry. Basement has one additional bedroom outside of the suite. Loads of extra storage space. High ceilings in the garage with potential for additional storage/shelving. Sunny, south-facing backyard – bring your gardening ideas! Lovely quiet neighborhood close to schools and transit.
If you think it might be time to sell your home, give me a call for a free marketing action plan.
It’s been an unusual year for us all and that includes those of us in Real Estate.
Starting in June house sales began to pick up and that continued through the summer. Currently, interest rates are low which is always helpful for those who qualify. Looking ahead there are just too many variables to predict what might happen, so stay tuned!
Mike Wilson – REMAX Treeland Realty
I have lived and worked in the Fraser Valley for over 40 years and I am active in the community, I bring several decades of real estate experience and strong marketing background to the FV housing scene. Whether you’re looking for help finding your perfect home at your perfect price, or you need professional support and friendly expertise to sell your home in an ever-changing market, I come to the table with a true passion for helping you make the best possible move.
KNOW YOUR EVACUATION ROUTES
STAY CONNECTED
CONSIDER A GENERATOR
STOCK UP
COLLECT IMPORTANT DOCUMENTS
KEEPING YOUR PETS SAFE DURING AN EMERGENCY
ACCESS AN ANIMAL EMERGENCY KIT FROM HUMANE CANADA.
suite. Loads of extra storage space. High ceilings in the garage with potential for additional storage/shelving. Sunny, south-facing backyard – bring your gardening ideas! Lovely quiet neighborhood close to schools and transit.