Benchmark housing prices in the Tri-Cities saw sharp decreases in January as communities across the Lower Mainland saw a modest drop in real estate values, according to statistics from the Real Estate Board of Greater Vancouver.
The benchmark price for a detached home in Coquitlam was $680,383 in January, down 1.5% from the same time one year ago. The other two municipalities saw even sharper declines, with Port Coquitlam dropping 9.6% and Port Moody falling 18.1% in year-over-year benchmark pricing.
But while the latest figures may be sobering to some homeowners, Tony Filippelli, a realtor with Port Moody's Royal LePage Showcase Plus, said the stats can be misleading. For example, he said, Port Moody's 18.1% drop can be attributed to the fact the market is small and can be easily influenced by one or two big sales.
Filippelli said he focuses more on the median pricing, which uses the average sale price in a given market, compared to the benchmark pricing, which selects a sample of a range of different sale prices.
Using the median indicator, home values in Port Moody and Coquitlam are up while prices in PoCo still saw some declines.
A detached home in Coquitlam, for example, rose from $649,750 in January 2010 to $684,000 in January 2011. On the other hand, a detached home in Port Coquitlam sold for $513,000 in January 2010 compared to $503,933 in January 2011.
"Winter time is a real tough time to measure," Filippelli said. "Sales are slower because there are less buyers but the buyers that are there are motivated, sincere buyers."
He added that the decrease in listings and the fact buyers are more motivated can actually lead to price increases in the colder months.
Filippelli said he is optimistic about real estate in 2011. While the HST and stricter mortgage standards will have an impact on the market, he said many people will be looking for homes in the new year.
Real estate values are becoming more balanced and the market is adjusting after a busy spring, he said.
"I don't think it is going to be a record-breaking year but I know our office is busy and we are starting to see a lot of deals," he said. "It's a meat-and-potatoes market. There is not a lot of extra fat on the steak."
