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Michele Has July Stats And Faisal Waheed Joins us
August 8, 2022 | Posted by: Michele Cummins
Warning! This show is transcripted automatically so there will be spelling mistakes throughout :)
Curtis Pope:
It's time for another edition of the Cummins Real Estate Group show with Michelle Cummins and myself Curtis Pope. No longer in California. Is it good to be back, Michelle?
Michele Cummins - PREC:
It is. And I've been loving just hunkering down and loving the weather's been amazing and just being home and I missed my cat BB and so and I miss Richard too.
Curtis Pope:
Glad you threw that in there. I was a little concerned.
Michele Cummins - PREC:
So I didn't get to go to the Agra Fair last weekend. How was that?
Curtis Pope:
It was it was hot. It was real warm. It was dusty. But it was a good time to get a good crowds out all weekend. And, and, you know, it was just kind of, you know, fun to be out in that fair atmosphere, even if, you know, it was 3536 degrees and hot and dusty. And I, you know, was you know, got a pretty good farmer's tan going. No,
Michele Cummins - PREC:
no, it's rained out, hasn't it in the past? For a long time now?
Curtis Pope:
No, we got we did have I think we had a bit of rain a few years ago. But no, we're usually pretty good for Agra fer now the P E on the other end, that's when the rain starts.
Michele Cummins - PREC:
Yeah, that time of year. So what was your favorite? Did something stand out this this weekend? Last weekend? You know, this this year? Did anything happen? That's like, Oh my gosh. Um,
Curtis Pope:
you know, I the demolition derby is always fun, and the fact that you don't enter a car and that surprises me. So that was always a lot of fun to watch. I enjoyed that. Tim in the glory boys. They performed on Sunday night, and they're just a fantastic country act. And they put on an amazing show.
Michele Cummins - PREC:
Oh, so sad. I missed it. Well, maybe I'll do my dirt bike. My new dirt bike I got.
Curtis Pope:
Oh, negative dirt bike. Well, I really think you should put a demolition derby car together. I could see you doing that.
Michele Cummins - PREC:
Motocross Debbie. Yeah, I would love that. I just put the common josei group all over it like,
Curtis Pope:
exactly.
Michele Cummins - PREC:
Okay, that will be the next thing. That'll be the next thing we do. Well,
Curtis Pope:
you know, in the past, they used to do these VIP celebrity demo derbies like a shorter race, you know, just you know, the, they don't do the figure eight, because they don't want us killing each other. But we just do the circle around the track. And I've watched it twice.
Michele Cummins - PREC:
Oh, that is so cool. Are they gonna do that again?
Curtis Pope:
There's been rumors, they might bring it back next year.
Michele Cummins - PREC:
Oh my gosh. Okay. If they do, you're gonna do it. Right.
Curtis Pope:
Well, I but I think you need to do it.
Michele Cummins - PREC:
Oh, you're you're the famous one. I'm gonna go and I'm gonna watch all you have to have a GoPro on your vehicle. That'd be fun. That would be fun. I'm not gonna go up against you Your winner.
Curtis Pope:
I've only won two out of the four times I've raced.
Michele Cummins - PREC:
Oh, that's pretty good. That's pretty good. Because
Curtis Pope:
it is an absolute blast. Everybody should have a chance to do it. I'm telling you.
Michele Cummins - PREC:
Oh, yeah. Yeah, I'm there. I'm there. Just let me know when they confirm it for next year.
Curtis Pope:
I will do so. So
Michele Cummins - PREC:
today, we're talking about real estate statistics.
Curtis Pope:
I figured being the first weekend of the month we were probably gonna go there.
Michele Cummins - PREC:
Yes, your why hate you are so smart. And it's August 6, and right in the heart of summer, and right in the heart of everything happening for the market, people will be on vacation. You know, the market has shifted a lot since February and quite drastically even from June to July. And so the release is that the sales slide for fourth straight months as rising interest rates, put brakes on Fraser Valley real estate market. And on our second segment today a we have a mortgage specialist who has come into our call today. And we are going to talk to Faisal Wahid from Dominion Lending and he is going to give us some hope at the to the end of the tunnel to light to the end of the tunnel.
Curtis Pope:
And we hope to we'll take hope hope is a good thing to
Michele Cummins - PREC:
light hope Exactly. And so he's going to shed some some light on that which will be really nice. So definitely stay tuned after our break. But moving forward, this will go hand in hand with what he has to say. So from the Fraser Valley Real Estate Board the news release is that in July, the Board did process through the MLS system, a decrease of 22.5% of list of sales from the previous month and 50.5% Drop compared to July of last year. It I there's just such less sales and it seems so drastic and 50% more than 50% from last year is a lot less sales. So when the province was still in acute pandemic mode, that is how much we've we've gone down so July the new listings, though, is a decrease of 28.4% Compared to last month in June, that is from July and a decrease of 1.9% compared to July of last year. So the weaker demand resulted in prices dropping for the fourth consecutive month, most notably for detached homes, which ended the month with a benchmark price of a million just under 600,000, down 3.5% from the last month and by 10.2%, since peaking in March at 1,776,700. So, combined, properties and benchmark prices are still up year over year by 18.1%. Although if you're a seller today, all you could think of is what you might have could have made before the shift in the market. But you have to know that you're still a lot higher than you would have been a year ago. And by the stats of detached homes as combined actually not just detached is 18.1% higher, so that's good. So it is it is quoted Sandra Ben's is the President at our real estate for this year. And she says it is important to keep in mind that real estate is and always will be an asset with considerable upside over the long term. And as prices come down from the highs of recent months, there are opportunities for buyers who have been waiting to reenter the market and shop for the right property. And when I look at a stat from this whole package, which you can find on my homepage, Michelle cummins.ca. Just scroll down and you'll see the stats you'll see every month that's there which you can fully look at. And on the graph that shows what kind of market we're in it is definitely in the lower end. In the buyers mark. When I say the lower end the graph started seller's market goes to balanced market and then there's the buyers market and we are down into that market. So single family detached prices overall in the Fraser Valley currently 1.6 million townhouses overall phrase rally is that 876,500 and condos apartments are at 553,400. So going into municipality by municipality, Abbotsford, aware are great radio stations that is detached homes. benchmark price, 1 million is $313,700 and that is up 15.5%. From last year, it's down 4.3%. From June townhouses in Abbotsford are 746,600. That's up 30.2% Still from last year, but down a modest 2.2% from the month before. Apartments are at 471,600. That's up 29.1% Still from last year, and a down modest 2.4% from the previous month. In mission detached benchmark prices are at $1,073,600 and that is still up 11.8% from last year and down 4.4% from the month before, townhouses are at 760,300 That's up 27.1% Still from last year and down the only point 3% from the month before apartments are 400 and almost $95,000 And that's up 31.2% last year and actually up from June at point 1%. And then white rocks out three detached benchmark prices are at $2,011,800 and that's up 18.2%. From last year and down 2% from the month before townhouses at 960,900. That's up 18.4% from last year and down only 2.3% from the month before apartments at 620,000. That's up 20.2% from last year and down 3.1% from the month before. And then Langley detached benchmark price is $1,720,700 and that's up 16.2% from last year and down 3.9% from the month before. Townhouses at 925,300 Up 28% from last year and down 1.4% From June apartments $622,500 at 22.1% from last year down 2.2% From June Delta North Delta okay benchmark prices detached homes $1,412,500 mess up 13% from last year down 7% from the month before, that's so far the biggest drop in detached month over month in a municipality. Townhouses $942,000 Up 19.3% from last year and down 3.1% from the month before and apartments 593,000 Up 26.2% Still from last year, but down 4.3% From June and then theory so combined all of serene except for the South Surrey White Rock area is detached benchmark prices at $1,732,800 at 19. Point 7% from last year, down 2.8%, from the month before, townhouses at $884,400, up 19.5% from last year and down 2.2% from the month before and apartments at 541,318.6% from last year and down 3.3% from the month before the graph. The other graph I wanted to point out in this whole stats package is that when you look overall for benchmark prices for detached homes in the Fraser Valley, it's actually gone down. Since the peak that we had in the start of February, it's down about $400,000. So the graph shows at 1.9 million and it's down at 1.5 million right now. So that's a big drastic when you look at that, but when you look at overall from last year, we're we're rocking it, we're still doing great and you know what Faisal is gonna give us some insights about what's going to probably happen next year and what's happening with housing, the housing crisis affordability, but, but also housing for people, for us, Canadians and for immigration growth and everything. So we're gonna look at that later. All right,
Curtis Pope:
so we should probably take a break now Michelle, if people want to have a look at the stats and the graphs and all the fun stuff, where can they go? Michelle commons.ca We're back with more right after this. She was taken number two of the covens Real Estate Group show with Michelle comes of course local Rockstar realtor and myself Curtis Pope. Now, we have a special guest that Michelle alluded to earlier. And normally, Michelle does these big, elaborate intros. And she said, Curtis, I'm gonna have you do the introduction this week. Problem was, I forgot to do my homework, and I got busy at work and haven't able to do much in the way of research. So we are joined by Faisal Wahid. Now, could you maybe help me out and tell me a little bit about yourself and how you got into being a mortgage specialist and things like that?
Unknown:
Yes. Hi. Yeah. Thank you for giving me the opportunity. So yeah, my name is Faisal Wahid, and I'm a mortgage broker for the last seven years now, for Dominion Lending. And basically, I'm based in Abbotsford live in Abbotsford. So I have three offices, one in Abbotsford, one in Langley and one in Surrey.
Curtis Pope:
Okay, so you have the valley covered pretty well then.
Unknown:
Yes. So honestly, my clients are all over the place all over Fraser Valley. And, for example, if my clients are from from Burnaby, Coquitlam, never asked them to come to Abbotsford, I always ask them to come to my Surrey office, and then I commute all the way to Missouri or Langley office. So I go back and
Curtis Pope:
forth. You put some miles on the vehicle, a lot of them. So what do you think about interest rates in the increase? You know, why the bank Academy would would do this? What do you think?
Unknown:
Yes, actually, what for? What they are trying to do is because there's a lot of supply of money in the market, for example, I will, I will make it pretty easy for people to understand that, for example, the banks are giving money to the individuals and businesses. So the money is there a lot of money's in the market. And but the because of the COVID thing in the last two years and the Russia and Ukraine war, the supply chain is disturbed, big time. So the money is there, but and the demand for the goods and services is there, but the supply is not there. So that's the reasons the prices have increased almost for every product. And of course, the gas prices is an important component of inflation. So what the government is trying that they issued, they are making, they're increasing the interest rate, just because to hold back the supply of money. So the have increased the cost of the borrowing. So the people so the businesses cannot spend too much money because the demand as I said, is there but the supply is not there. So that's why there's an Increase in the commodities. So that's the basic basic concept in increasing the interest rates.
Michele Cummins - PREC:
Well, how has this affected the latest interest rate hike? How has it affected first time homebuyers?
Unknown:
Sure, yes, it is affected honestly big time because I come across a lot of my clients, who are first time homebuyers, whether they're fixed income people are self employed. There because for example, with fixed especially with a fixed income people, they have the income fixed, right. So there's hardly any increase in income, but their mortgage payments have gone up, say $200 $300, or even one and $50 a month, depending on the size of the mortgage, which in this is we are only talking about their monthly mortgage. And there are other things also, like grocery gas prices, everything has increased. So it has really affected them a lot. And they have just hold back that they don't want to purchase right now until these interest rates don't come down.
Curtis Pope:
And how is the housing market looking like for the next couple years, especially here in British Columbia?
Unknown:
Yeah. and British Columbia, sir. My Fine, fine, pretty clear about it. Because I work every day I come across people and I have clients these days, a lot of demand for the property, there's no doubt about it. So that was the of course, that was the only reason that real estate was so crazy in the last few years, and the prices went up so high. So the demand is still there, but because of the right increase in the interest rates, the people have just hold back and there are a lot of buyers in the market, who are ready to buy, but now because since February or March this year, now it is a buyers market. So the buyers have just hold back and they are just seeing that prices are coming down. And of course, they want that they should get the maximum benefit out of it. But having said that, and still I know there are very smart people who are still buying, because for example, just for understanding purpose, I will tell you that in Abbotsford, the price of a detached house has come down almost depending upon that on the quality of the house and the location, average 100 $250,000 for a detached house. Smart people are still buying because the and it makes sense also, because if the interest rate has increased, but the prices of the houses have come down. So so it's almost the same thing. If we think in February, this year, when the prices were up and the interest rates were low, so it's almost the same thing. And I'm pretty sure that because these things the government can't afford to do that this thing should keep on going for too long. Because it slows the economy, higher interest rate, then less supply of money. So less opportunities for the people businesses are slow. So government can't afford this thing to go for too long. So they are slowing down down the economy for the time being. But I'm pretty hopeful that it should be okay. By the end of next year 2023 Or in the summer of 2023. Things should start improving and the rate of interest should start coming down.
Michele Cummins - PREC:
I do you feel that way too. And I've heard that before. And from now until then, though, and I love how you say the hope there's the hope word.
Unknown:
I'm pretty sure Yeah.
Michele Cummins - PREC:
And what how how much do you think? How much more do you think that interest rates will go up from now until it starts balancing out?
Unknown:
So there's another meeting of the Bank of Canada on September 7. So so I will of course until it is it is officially announced I say good speculation. But we are expecting another probably point increase of point five 0% increase in the primary. But let's see what happens on seventh of September. So the basic as I told you before, the basic thing is to slow down the supply of money in the market. And which is of course as we can see have slowed down the housing market. But I can tell you from my experience, there are a lot of buyers who are just waiting and just looking at things. But the thing I'm pretty sure within myself I'm 100 person showed that this thing housing market because there's a lot of demand for housing and the housing itself is not available because if any projects the apartments townhouses are coming up. Every project takes about three to four years, a big project, say 100 townhouses or 200 apartments. It takes time, usually three years, four years?
Michele Cummins - PREC:
For sure. Okay, so what interest rate? Right now? Do you prefer for your clients? Is it fixed or variable? Which one are you suggesting? And yeah, so.
Unknown:
Right. Right, very good question. And it's a very basic question and most of people while they are getting a mortgage, so they don't know what to choose. And unfortunately, most of the mortgage brokers when the getting the paperwork signed, they don't explain the what is the difference? And what are the advantages and disadvantages of a fixed or variable rate. So So, uh, personally, this is my personal opinion, and this I recommend to my clients, and then it's all up to them that whether they want to take a fixed rate or variable rate, but I am a fan of a variable rate in the last two years, I haven't done a single mortgage with a fixed rate. And the simple reason for that one is, which most people don't know that if they get a fixed rate, of course, they then they are liable, or they're bound for a term of five years, whatever term they are taking, most people take five year term. So they are bound. Almost, this is an official stat, that around 65 to 70% of the people, they bring their term mortgage term for some reason they want to refinance it, or they want to sell the property. But the sort of thing is that when you break a term, a mortgage term with a fixed rate, so the penalty amount is pretty high, which a lot of people don't know. And one thing I will suggest to people that while they are doing the mortgage and finding the paper, so they should or the mortgage broker that if the break that at some point of time, so what will be the penalty amount. And with a variable rate, the biggest advantages is that once and variable rate is always or most of the time, still it is a gap of variable rate is one person learns less than a fixed, fixed rate. And the other thing to advantages with a variable rate is once you get the variable rate, you can always change it to a fixed rate, just over a phone call without any penalty, nothing. And the second thing is the penalty amount, we know exactly the penalty about upfront when we take a mortgage for a client, it's a three months of interest penalty, for example, if a mortgage payment is $2,000 a month, and one out of that $2,000 1000 is interest amount, and 1000 is the principal amount. So straight away, we can easily figure out that whenever they break that term during the five year actual term period. So the penalty amount will be $3,000. So yeah, I'm I'm a big fan of variable rate
Michele Cummins - PREC:
Miku. And that's such great insight and advice. And thank you so much for that. And we're short on time, so we have to go but that was very insightful. Thank you so much.
Unknown:
Thank you very much. Thank you very much for giving me the opportunity.
Michele Cummins - PREC:
Absolutely. And I wanted to mention, of course, a new listing and some open houses. So there is number 57. Love the number seven and it's priced at $697,700. You can have a single family, rancher, all one level, and it's got a single garage, it's got a private backyard and it's in a gated community that has an in ground indoor pool and jacuzzi and sauna. And you have access to the Harrison River. It's amazing and it's in cafeteria state. That is a hot new listing. And then I've got an open house extravaganza that I'm doing with some other a few other amazing colleagues of mine who have listings around my listing up at Nixon road that is in the eastern hillside of Chilliwack at the Falls golf course and guess what we are giving away $50,000 to any buyer who comes to my Open House specifically for my business and that $50,000 could help you to purchase that bonus to the buyer. And also we're all as a group giving away a gift cards to those who come to all three of the open houses. So just go on my Facebook page, you will see that open house extravaganza happening at the full golf course the community around there, and you will also see other open houses that I'm having this weekend. And then there's another hot new listing with amazing Fraser River views and mountain views. And it's a large rancher with a walkout basement. It's gorgeous. It's only $1.5 million. And it's a really new home still has all its warranties, pretty much so that find out more information on my website. And and then yeah, contact me for around my land assembly I have in Chilliwack as well, which is a great opportunity for developers or investors. If possible, I can use any of our shows this week with a quote.
Unknown:
Yeah, absolutely. I will. And I will, I will also share my phone number if somebody some of your viewers have any questions. So my phone number is 604-807-6428. If anybody has any questions, please do let me know. And one of my favorite quotes, which we which we go through almost every day, is that doubt kills more dreams than failure failure ever will.
Curtis Pope:
Very true. Very true, indeed. Thank you very much for that quote, sir.
Unknown:
Thank you. Good. Thank you, Michelle. Thank you for giving me the opportunity.
Curtis Pope:
All right, Michelle. People want more information about what you do as a realtor and to see your open houses and your listings and all that fun stuff. Where can they go? They'll come in and join us again next week and we will talk real estate in order to unlock your real estate potential on the show real estate is maximized. Thanks for listening
If you missed last week's episode where Michele Talks about New Development and the Upcoming Web Seminar, please go take a listen! It's well worth it!