Real estate sales across the Fraser Valley were down a significant 24 per cent in March compared to a year ago, according to the latest numbers, but one real estate broker said there鈥檚 no need to panic.
鈥淭he 10-year average is 1,658 sales per month, and we processed 1,654 [this month],鈥� said Michael Trites, managing broker with Royal LePage NorthStar in Surrey. 鈥淭he sky isn鈥檛 falling.鈥�
Referring to the latest numbers from the Fraser Valley Real Estate Board, Trites said the drop was nevertheless some cause for concern for those selling their homes, as they may need to drop their price for a more sluggish market.
鈥淭hat will set a precedent for houses that are similar to it,鈥� he said. 鈥淚f your neighbour down the street sells for $1 million, you鈥檙e logically thinking that your house is worth a million. But if he has to take $950,000 for it, it鈥檚 not worth $1 million anymore.鈥�
As for detached homes, Trites said sales were down pretty evenly across the region.
鈥淲hite Rock is down 29.9 per cent, 91原创 is down 39.6 per cent, North Delta is down 30.0 per cent and Surrey is down 27.6 per cent.鈥�
Even in the booming condo market, there鈥檚 a decline in sales from last year 鈥� 27.9% across the valley. 鈥淟ast year was very much a strong banner year.鈥�
Trites attributes the trend to the change in mortgage rules, known as the 鈥渟tress test鈥� that was implemented earlier this year.
All borrowers must now qualify for a mortgage based on either the five-year benchmark rate or their lender鈥檚 actual rate plus two per cent, whichever is higher. The change will apply to all mortgages, new or renewed, even if the down payment exceeds 20 per cent.
While there have been murmurs of how the province鈥檚 recently announced speculation tax, and newly expanded foreign buyer tax, will affect the housing market, Trites said it鈥檚 still too soon to feel the effects of that proposal.
Prices on Fraser Valley real estate, meanwhile, continued to rise in March.
The benchmark price of a single-family detached home went up 0.9 per cent compared to the previous month and 15.2 per cent compared to last year.
The benchmark price of a townhouse climbed two per cent compared to last month and 24.9 per cent compared to last year.
The benchmark price of a condo grew 4.3 per cent compared to last month and 48 per cent compared to last year.
