The news today, Nov 15th 2016 will probably surround the recent interest rate increases from this morning. But I wanted to focus on affordability under the new mortgage rates, in some cases ½ percent higher than yesterday. IE) 2.64% vs. 2.24%.
After reading the article below about Vancouver affordability I was inspired to do some number crunching myself for our neighbourhoods to compare. In Vancouver prices from the large, high-end homes make up 20% of the sales and this segment gets all the attention. These high price purchase prices skew the average price we talk about. In-fact around my office we use Benchmark Price, aka Home Price Index instead of average price to avoid this mis-information.
The example is extreme in Vancouver but most markets in the Fraser Valley follow this trend with high-end homes skewing the average price. Well this is not the case in Abbotsford and Mission.
In most Fraser Valley markets such as White Rock and South Surrey the average price is influenced by the sale of large estate homes from month to month on average. We get this information from the Fraser Valley Real Estate Board statistic package monthly.
So here is what Abbotsford and Mission’s HPI VS. Average Price (Chilliwack unavailable) is in each area and the equivalent payment through a low rate mortgage from us – When you look past the home prices you can see the average payment for your average first time buyer and average seasoned home owner with equity. Do you feel the payments are still affordable in this current real estate market?
The regular middle class purchase prices are well within reach according to the article below. The articles affordability calculation also tells me an Abbotsford regular home of $663,000 requires a family income of $120,000 a year conservatively to qualify to buy. The HPI value of $547,300 in Mission requires an income of $98,954.00 annually. Can first time buyers reach this income level as a family?
300 - 3303 Immel St. Abbotsford BC V2X 5Y1
1 - 32540 Logan Ave Mission BC V2V 6G3
O 604 859 3141 or 604 826 2699 F 604 859 5226 or 604 826 2621
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