Your Fraser Valley Real Estate Market Update
  
Fraser Valley’s extraordinary pandemic real estate market continued to break sales records – for the ninth consecutive month – while at the same time, reaching near-historic levels of new listings in May.
Here is the summary of the market for May, 2021
Total Sales Processed - 2,951 (Increase of 267% compared to May 2020)
Total New Listings - 3,926
Total Active Listings - 5,868
For the Fraser Valley region, the average number of days to sell an:
Apartment (Condos) -20 Days
Townhomes - 12 Days
Single Family Detached - 14 Days
Of the total transactions Fraser Valley Real Estate Board processed:
703 were Townhouses
781 were Apartments (Condos)
1,193 were Single Family Detached
HPI Benchmark Price Activity
Apartments/Condos
Benchmark Price - $488,500
Price increased 12.6% compared to May 2020
Price increased 2.0% compared to April 2021
Townhomes
Benchmark Price - $670,000
Price increased 20.7% compared to May 2020
Price increased 2.7% compared to April 2021
Single Family Detached
Benchmark Price - $1,323,300
Price increased 33.6% compared to May 2020
Price increased 2.3% compared to April 2021
For the most updated market information on what is happening in your neighborhood, give me a call at 604 308 6404 or e mail at RealtorNischal@gmail.com.
The support of a real estate expert goes a long way when navigating a busy market in the Fraser Valley..
Reminder: As you know that I am in real estate investment and sales and my passion is to bring buyers/sellers together. Who have you talked to in past couple days that might be thinking about buying/selling in British Columbia or anywhere in Canada (I am blessed to be a part of a huge network that I meet/talk-to on regular basis which is the backbone of my business that my clients benefit.
Also, we offer a $500.00 referral fee to anyone that leads to successful completion of a sale.
Things You Can Learn From Your Child
Be like children, here are four ways to be more like a child no matter how old you get…
1. Curiosity
Be curious; embrace childish curiosity. What will kids do if they want to know something bad enough? You’re right. They will bug you. Kids can ask a million questions. You think they’re through, then they’ve got another million. They will keep plaguing you. They can drive you right to the brink.
Kids use their curiosity to learn.
2. Excitement
Learn to get excited like a child. There is nothing that has more magic than childish excitement. So excited that you hate to go to bed at night… that you can’t wait to get up in the morning… that you’re about to explode. How can anyone resist that kind of childish magic?
3. Faith
Faith is childish. How else would you describe it? Some people say, “Let’s be adult about it.” Oh, no. No. Adults too often have a tendency to be overly skeptical. Some adults even have a tendency to be cynical.
No wonder the master teacher said, “Unless you can become like little children, your chances, they’re skinny.”
4. Trust
Trust is a childish virtue, but it has great merit. Have you heard the expression “Sleep like a baby”? That’s it. Childish trust. After you’ve gotten an A+ for the day, leave it in somebody else’s hands.
Curiosity, excitement, faith and trust. That is a powerful combination to bring (back) into our lives.
The Pros and Cons of Investing in Self Storage
What makes self-storage so successful within the greater real estate investment arena? It comes down to a few factors, especially flexibility and low overhead. Together with increasingly mobile lifestyles, the market is perfectly calibrated for a growing self-storage sector.
The pros of self-storage investing
During good times, people are buying lots of stuff and need a place to store it. And during downturns, people are downsizing their homes, so again, they need storage space.
1. Garners sticky tenants
People in this asset class are willing to put up with more rent increases than tenants in other asset classes.
2. A huge industry
The way in which things are optimally run within the industry is shifting. The strategy now is to buy mom-and-pop-owned facilities, upgrade them, increase the income, increase the value, then refinance or resell it to an institutional investor
3. Simple, inexpensive value-adds
For example, adding truck rental can increase income by a few thousand dollars on a self-storage facility. Late fees, admin fees, raising rent, selling moving supplies, and putting in a showroom are other options.
4. Makes money when buying, operating, and selling
In other areas of real estate, it is said that one can only make money when they buy. But the self-storage value formula is to buy from a mom and pop, upgrade to an institutional standard, then refinance or sell to a REIT—and money is being made the whole time.
5. Business value not limited by comps
For residential owners and investors, value is limited by comparable properties in the area. This isn’t the case in commercial real estate. The value is calculated by dividing the net operating income by the rate of return (or cap rate). So, if the numerator is increased and the denominator compressed, it can dramatically increase the value of an investor’s assets.
The cons of self-storage investing
1. Needs to be located in high-traffic area, but away from competitors
This is ultimately what will drive profitability. The best storage units operate at a 90% capacity most months, have high visibility at their location and offer something of value to the community.
2. Must meet the demands of the surrounding community
It is also important to offer the right mix of units (drive-up vs. interior) and amenities (conditioned, high security, 24/7 access, etc.) to meet the needs of the local community. Market research will clue owners with what they should offer based on the needs of the surrounding community.
3. Finding good help
It can be difficult to find good help in this industry, and most self-storage facilities are run by one trustworthy person. Many owners tend to manage their self-storage businesses personally because bad management can tank a company quickly.
4. Varying customer demographics
Your customer base could have very different needs, and people using storage facilities may be experiencing stressful circumstances (death of a loved one, job relocation, etc.). Dramatic interactions with tenants should be expected and managers need to be able to keep their cool and still provide excellent customer service.
5. Fluctuation of yearly occupancy rate
Most storage unit companies are encouraged to shoot for a 90% occupancy rate as a way to measure their annual income. But that number is not always easy to come by in this industry.
6. Protecting items
It is hard to protect the items in each storage unit 100% of the time. A facility needs several different security features to keep personal or commercial property safe: locks on the doors, security cameras, and other safeguards. Costly upgrades might be needed to sway customers to use the facility and help your business grow.
When it comes to self-storage investing it is about knowing—and moving with—the market. The flexibility to do that is what makes self-storage such a profitable investment in the first place.
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