2015 – A Review of Real Estate Market Value

What happened to your property value?

A very common question I get as a REALTOR® is “How is the market” Typically we understand that to mean is “Is the value of my house going higher or should I be worrying about a bubble?”

To say the real estate market in Abbotsford and Mission areas was active in 2015 would not really do justice to the level of activity we have had. Robust would be a better word. The number of properties that sold was up 33.8% in Abbotsford and 37.1% in Mission. New listings were up only 9.3 and 3.6 per cent respectively.

Market value on average increased about 11% in Abbotsford for a typical Single Family home December 2014 to December 2015. Mission experienced increases of 17.3% for the same time period. This is based on the average price of a single family home as per the House Price Index published by the Fraser Valley Real Estate Board.

Jorda Maisy, president of the FVREB had this to say :

The market remains buoyant, and with very low inventory currently there is tremendous
opportunity for sellers. For buyers finding it challenging in their search, REALTORS® are recommending they consider a variety of housing options and communities they may not have considered. There’s a lot of choice out there, you just need to know where to look.”

The next question that may come mind is “What will market value do this next year?” Unfortunately for that one, we cannot accurately predict what will take place. Time will tell the tale of what actually happens but my experience tells me we could expect a levelling off on the activity and depending on our supply, Market Value might level off as well.

Three things that will impact Market Value

Inventory Levels:

Currently our inventory levels are at around 60% of what they would normally be. I recall a similar situation in 1989 and 1990. An extemely robust market caused values to increase and inventory levels to plummet. In the Spring, inventory levels returned to normal and beyond causing a levelling off of our market.

Demand

Some predictions are we will have a strong migration of people to Abbotsford which would fuel the demand. People will need a place to live. Either rental or purchase. Either way demand should be good throughout 2016

Interest Rates

While the Bank of Canada Rate has remained somewhat steady, there is talk that it could go down and perhaps even become negative. This would happen in order to stimulate our economy. You should talk to someone who is smarter than I about such things but the Mortgage rates may actually increase. They are based on the Bond rate and apparently they may go up. Should interest rates go up significantly, it will affect the price of our homes.

Me out on a limb… Or in Summary…. I predict that you will see continued activity in our market but with more modest growth in market value in both Mission and Abbotsford. 

To see what is currently available just click on this link.

If you are interested in getting your property value updated, please feel free to contact me. I am only to happy to provide that service to you. If you found this article interesting, please like us on facebook or share through twitter.

 

Who is Don Goertz?

Hi, I’m Don Goertz. I am the author of the posts on this Real Estate Blog. Welcome! It is my desire to make this site a valuable resource to you for all your real estate needs.

If you are looking for:

  • A place to find your next property,
  • Information on communtities of Abbotsford and Mission,
  • Ideas on how to save money on the energy required to run your property,
  • Advice on real estate market conditions
  • Answers to your all your real estate questions,

Then you are in the right spot.

Here are some of the topics I write about:

  • Market Conditions
  • How to “Green” your property
  • What’s happening in the community
  • How to “Questions” 
  • Ask The Broker 
Real Estate? How does that fit? Well, my experience comes mostly from a 30 year career in Real Estate where I was an agent, a Manager and the Owner of a large office. This experience shows how difficult it can be to be successful and lead a balanced life so some of my posts will be geared specifically to REALTORS and how they can be better.
  • These ideas come from my personal experience, inspiring movies, Books and other blog posts that I read.
  • You can expect at least two posts per week.
  • If you like what you read and would like to ensure you don’t miss any, please subscribe and have it delivered to your inbox.
During my journey I have learned how important it is to help others along the way. For you to become a better and more fulfilled person is the sole reason and purpose for this blog.
BIOGRAPHY:
Business Background:
  • I am a former Broker Owner of a RE/MAX Real Estate Franchise. Ray and I grew our office to three locations and about 100 REALTOR’s from 30 when we took over the office. We recognized the value in training our team and the importance of having them work in areas of their strengths.
  • This philosophy led us to participate in many training opportunities and eventually to become a certified trainer and coach under the umbrella of John Maxwell. The John Maxwell Team was founded in 2011 and I am a Founding Partner.
  • The Training material offered by the JMT are very beneficial in establishing our personal growth plan.
Personal Life:
  • Sonya and I have been happily married for over 40 years. Wow! Time flies when you are having fun and every year with her has been an adventure. We have three adult children and are blessed with 8 grandchildren.
  • It is true what they say. Grandchildren make having children worthwhile!
  • As a Follower of Jesus Christ I believe we have not only been created with incredible potential but the best way to discover this potential is through our relationship with Him. He promised that he came to bring us an abundant life. When I observe His incredible creation I see but a glimpse of what abundance should be about. So the focus of the journey.
Personal Interests:
  • I love watching football. Almost as much as when I was younger and able to play it. Hockey and baseball are pretty good too. That might sound like blasphemy for a Canadian to put football before hockey but what can I say.
  • Computers and gadgets have a way of holding my interest as well and I am continually trying to figure better ways of doing things.
  • Having grown up in the Fraser Valley of British Columbia, we get spoiled by being in close proximity to the majestic mountains as well as within an hours drive to the fathomless Pacific Ocean.
Connections:
mailto: dongoertz@remax.net

 

Don Goertz