According to MLS data for the Simon Fraser University area, specifically UniverCity of Burnaby North, there are presently 52 active listings for an average list price of $424,837 or $469.12 per sq ft. The number of active listing represents less than 4% of resale inventory.
One sale was registered during this past week, with a cost per sqft at $458.16.
Over the past week the mountain received a considerable amount of snow but this has quickly washed away as temperatures have risen. We are now entering a solid spring market and buying activity will increase as it always has in past years. Weather becomes more cooperative and students prepare for accommodations during the summer term. This will lead to more buying and the listing inventory should rise.
It is also anticipated that he SFU Community Trust will release up to additional 4 to 6 parcels of land. The tendering process of these parcels will commence shortly. Developers are already considering the market place for new construction.
Many had predicted the Bank of Canada would raise the key overnight lending rate when they met on March 1, 2011. This did not happen. As result mortgage rates continue to be at all-time lows.
New mortgage lending rules will come into effect on March 18, 2011, however, the impact these new practices will have on the real estate market will not be considerable. For example, one of the new rules is a reduction in the maximum amortization of a mortgage. Currently one could amortize a mortgage for 35 years. After March 18 the numbers of years will be reduced to 30. The net effect on a buyer would mean a potential increase of $100 to the monthly payments.
It is largely expected that 2011 will be a fairly balanced market. I believe we will see an active market with mid to high single digit price increases by the year’s end.
Contact us now if you have questions about the market in general or specifically if you would like to learn more about the Simon Fraser University area.