January 2009 housing statistics

(Surrey, BC) – A total of 389 sales were processed through Fraser Valley’s MLS® in January, a decrease of 59 per cent compared to 956 sales in January 2008 and comparable to January sales figures last seen in the early 1980s, according to statistics from Fraser Valley Real Estate Board’s Multiple Listing Service®. However, for the fourth month in a row, the Board received fewer new listings. REALTORS® added 2,003 new listings in January 2009, 30 per cent less compared to the same month last year. This decreased the number of properties available in the Fraser Valley to 8,630, 26 percent higher than January 2008, but 30 percent fewer than the Board’s record high number of active listings in September 2008.

“Those who don’t have to buy right now aren’t and they’re creating tremendous opportunity for those who are house-hunting,” says Kelvin Neufeld, president of the Board. “The ability right now for Fraser Valley REALTORS® to negotiate for their buyers is the strongest it’s been in over a decade.” Neufeld says if the current imbalance between supply and demand continues to change with the trend moving toward a decrease in homes on the market, buyers will only have this window of opportunity for so long. “When selection decreases, pricing becomes more competitive,” he says.

Residential benchmark prices, the value of a ‘typical’ Fraser Valley detached home as determined by the MLSLink® Housing Price Index (HPI)*, decreased 9.6 per cent compared to January 2008, the eighth consecutive monthly decline. The benchmark price was $452,145 in January 2009 compared to $500,070 last year.

The HPI benchmark price of Fraser Valley townhouses decreased by 8.5 per cent in one year, going from $322,888 in January 2008 to $295,339 in January 2009, while the benchmark price of apartments decreased by 12.9 per cent going from $253,198 in January of last year to $220,595 in January 2009.

* The MLSLink® Housing Price Index (HPI), established in 1995, is modeled on the Consumer Price Index (CPI) which measures the rate of price change for a basket of goods and services including food, clothing, shelter, and transportation. Instead of measuring goods and services, the HPI measures the change in the price of housing features. Thus, the HPI measures typical, pure price change (inflation or defl ation). The HPI benchmarks represent the price of a typical property within each market. The HPI takes into consideration what averages and medians do not – items such as lot size, age, number of rooms, etc. These features become the composite of the ‘typical house’ in a given area. Each month’s sales determine the current prices paid for bedrooms, bathrooms, fi replaces, etc. and apply those new values to the ‘typical’ house model.

Source FVREB