Langley Market Snapshot December 2021
“Fraser Valley real estate market sees the busiest year in 100-year history”
Wow, just WOW! It seems when the market can get any crazier, it does! 2021 shattered the previous annual record last set in 2016. Year-over-year, detached home sales in the Fraser Valley soared by 31.8 percent in 2021 compared to 2020; townhome sales increased by 33.7 percent, and sales of apartments increased by 68.9 percent.
With the desperate need for inventory, and the buyers still out, the prices continue to rise. With interest rates remaining low for the time being, many buyers are trying to make their way into the market or upsize.
Making a plan is vital when looking to sell and/or buy in this market. Ensure you have a real estate professional looking after your best interest. For example, do you buy first or sell? What happens if you sell and can’t find anything to buy? Looking at the big picture and all outcomes will ensure you have no surprises and make the sale and purchase much less stressful.
Having a realtor on your side who is well versed in the market and knows how to navigate it is crucial. I would love to chat about how I can help you with your real estate needs and make a plan that suits you!
Curious what your home is worth? Contact us!
2022 BC ASSESSMENTS ARE OUT, BUT WHAT DOES THAT MEAN FOR YOU?
5 WAYS YOUR ASSESSMENT CAN HELP YOU AND YOUR FAMILY.
As a homeowner in British Columbia, you should have received your BC assessment for 2022 on January 4th. The value of these assessments are determined by the market value as of July 1st, 2021. As the real estate market in this past year remained highly active we saw a 20% increase on average in assessment values, in the Lower Mainland, which is a significant increase from previous years.
Your assessment may confirm you have equity in your home, even more so than you might have thought. With that equity let’s put it to use, here are 5 opportunities for you to utilize your home’s equity to start working for you.
1. SELL YOUR CURRENT HOME TO UPSIZE, DOWNSIZE OR RELOCATE
You may find yourself with 10%-20% of equity in your home and are considering if now is the time to sell. Depending on your current situation, this may be a great opportunity for you to achieve your goals. Start off by contacting your realtor to determine your home’s current market value then contact a mortgage broker to secure your mortgage financing and finish off by finding the home of your dreams.
2. PAY OFF HIGH INTEREST BALANCES
After the holiday season you may find yourself with higher than normal balances on unsecured debt such as credit cards or lines of credit. If you have any debt with higher than 2% interest you can look at using your equity to pay that off and save significantly each month on the interest you are already paying.
3. BUY A RENTAL INVESTMENT OR VACATION PROPERTY
Buying a second property can open a few different doors in terms of what you are looking to do with your investment. With the equity in your current property, you can consider purchasing a cabin or cottage for your family to enjoy; while at the same time benefiting from rising home values.
Alternatively, you could purchase an investment property that would generate income to put towards your mortgage. This would create an opportunity for an ongoing revenue stream which will grow your profit and provide other financial benefits.
4. HOME RENOVATIONS
Most home renovations won’t recoup their cost dollar for dollar, but many do add significant resale value. These renovations can help your property stay current against new construction and upgrades going into neighboring homes. By using your equity in your property to complete renovations you can add tremendous value to your home with our upward moving market.
5. USE IT TOWARDS YOUR RETIREMENT
The most straightforward way to use your home equity for retirement is to downsize from your current home and invest the proceeds. This will reduce your monthly expenses all the while continuing to build equity with another mortgage.
These assessments are used to determine your property taxes, as a result of the significant increase most homeowners will see a rise in their property taxes but the good news is that you may have more equity in your property than you perceived. Although the BC assessment value is based on the market to determine the property value it is not based on our current market which is ever changing. If you are considering selling or refinancing your current property, the true value of your property will be based on the current market or appraised value. If you want to find out more about how much equity you might have and how it can start working for you, let’s connect.
