North Delta Market Update: January 2017

How did the North Delta real estate market do in the first month of 2017? I have the latest numbers and trends for you today.

Want to sell your home? Get a FREE home value report. 

Want to buy a home? Search all homes for sale.

Nearly every day, someone asks me, “What’s going on in the real estate market?” Today, I’m here with your market update for January of 2017.

Going back to September, housing inventory has steadily declined each month. In September, there were 218 homes on the market. At the end of January, there were 120 homes on the market.

That said, sales activity has remained relatively stable month to month. In September, 28 homes sold; that number dropped to 20 in December, but that’s to be expected at that time of year. In January, home sales ticked upward to 23.

As for new listings, there were only 27 in December but that number jumped up to 43 in January. We can expect that number to climb as the spring market approaches. Inventory will grow and sales activity will follow as well.

“

As inventory goes up, so will sales activity.

”

If we look at the sales to active listings ratio, that number was only at 13% in September. In January, the sales to active listings ratio was 19%. Keep in mind that 15% to 20% is considered a healthy market. Sales were low in January this year but inventory was lower, which kept that percentage a little higher than it should have been. Again, we do expect sales to go up as inventory increases.

So, how are home values doing? In June, the benchmark price dropped 8.5%, then stabilized in October. In November, the benchmark price was $832,000; in December, that number went up to $833,000, and in January, the benchmark price dropped slightly to $828,000. Still, that is up 14.8% from the benchmark price in 2016, which was $721,600.

What does that mean for you as a homeowner? Right now, we’re seeing relative consistency in the benchmark price and sales activity. If you are looking forward to the sales market, you can expect the number of homes you will compete against to go up as inventory increases.

If you have any other questions about our current market or about the home buying or selling process, give me a call or send me an email. I would be happy to help you!

How Will the New Hwy 91 & 72 Ave Interchange Affect You?

Have you heard the news about Highway 91? An exciting change is underway and I want to tell you all about it.

Want to sell your home? Get a FREE home value report. 

Want to buy a home? Search all homes for sale.

If you’ve ever traveled down 72 Avenue down Alex Fraser or used Highway 91 northbound toward the Alex Fraser, you know how frustrating that current interchange is. Well, today I have some great news.

All levels of government have announced that construction will start on the new Highway 91 and 72 Avenue interchange, effectively removing the last light on the Highway 91 corridor with the goal of improving travel times and reducing congestion.

This is a $30 million project, with $20 million being funded by the province and $10 million being funded by the federal government, with an estimated completion time of winter 2018.

“

Be prepared for changes caused by this major infrastructure improvement.

”

The design of the overall project is what is referred to as a diamond design. The thought behind that was to minimize any environmental impact on Burns Bog, and the engineers feel confident they have been able to achieve that goal.

What we know about these types of major infrastructure improvements is that they tend to bring more change to the region. For example, there are already projects happening along 72 Avenue and it is scheduled to become a four-lane street.

These changes won’t happen overnight, but things are starting to get a move on now that the snow is starting to melt.

Likewise, if you are starting to think about spring and in turn the spring market, I encourage you to reach out to me. The market has changed so much, and who you choose to represent and advise you and your family is more important now than ever.

If you have any questions please don’t hesitate to reach out with a phone call or a quick email. I’m happy to help in any way I can!

New Year, New Notice of Assessments

The new year means new property tax assessments. Today, I wanted to dispel a few myths about how these taxes are calculated and what they mean to your home's value.

Want to sell your home? Get a FREE home value report. 

Want to buy a home? Search all homes for sale.

Happy New Year! The new year always brings that pleasant little surprise: your notice of assessment.

It was probably a bit of a sticker shock to you when you opened it—I know it was for me. That's why today, I wanted to take a minute to talk about the assessment; what it is, how it's derived, and what it means to you as a homeowner. I want to provide a bipartisan, neutral overview of the assessment, not an opinion.

First, know that your assessed value isn't your market value. The assessment is a snapshot from the assessor's mind of what your home would've sold for on July 1st, 2016. A lot has changed since then. The assessment doesn't know if you spent $200,000 on renovations, whether you haven't updated the house since 1979, or even whether you knocked a wall down to turn a 3-bedroom into a 2-bedroom.

These factors all play a role in fair market value—what a buyer is willing to pay for your home and what you are willing to accept. In fact, even just two or three years ago, it was common for North Delta homes to sell well above their assessed value.

“

Assessed value and fair market value are not the same thing.

”

When it comes to determining fair market value for your home, we don't consider assessed value. We want to instead look at what's going on in the market, what comparable sales look like, what your home's features, benefits, upgrades, and location are, among many other variables. That fair market value will be different at any given time throughout the year.

Assessed value is merely a derivative of determining what your property taxes will look like.

Speaking of property taxes, recently, folks have reached out to me after seeing their assessment go up by 50% and are fearing that their taxes will go up 50% as well. That's simply not true. Here in North Delta, for example, the municipalities look at the situation and say that on average, assessments have gone up by 44%. We'll all see a 3% increase in property taxes regardless, simply to keep up with the rate of inflation.

So let's assume your assessment went up by 50%. That's 6% above the average, meaning they will take your 6% plus the 3% for inflation, so you should expect to pay roughly 9% more in property taxes than last year. If your home only went up 40% in assessed value, then you can actually expect to pay less than last year. The council meets in the spring, when they determine their budgets. They will determine what they need to balance their budget to run the municipality and pay for things like schools, hospitals, and roads.

Remember, you have until January 31st to appeal your assessment. There's a process in place to do this and I'd be more than happy to walk you through it. Just give me a call and let's talk soon.