At a time when our growing debt-to-income ratios are raising red flags BC and more specifically Surreys housing markets appear to be in position to benefit from the spoils of inter-provincial migration.
Low oil prices are continuing to cripple the economies of Alberta, Saskatchewan and Newfoundland and the residents of those provinces will need to look for new opportunities and new places to live.
More BC residents moved to Alberta than the reverse from 2011-2013 but as oil prices began to hurt Alberta in 2014 the trend began reversing. While international migration to BC has been strong since the 1990’s BC saw losses of residents to other parts of Canada in 2012 and 2013. 9 months into 2014 BC posted a net gain of over 7,500 residents from other Provinces - exceeding the 12 month forecast for that year.
Most people who move to BC end up settling in Greater Vancouver or the Fraser Valley but when you consider the “sticker-shock effect” in Vancouver you can imagine Surrey will be an attractive alternative to the Greater Vancouver area. Furthermore, our population is growing, we are located close to the border and interest rates continue to remain supportive of housing demand.
Nationally, the new baby boomers (30-39 year olds) are the fastest growing age group and locally demand for single family detached homes is outpacing supply in Surrey, North Delta, South Surrey and Cloverdale. This specific demand is resulting in low inventory levels, upward pressure on prices and homes selling faster than they did last year. This is not the case if you are looking to invest in an apartment or townhome in areas where multi-family supply is expanding like North Surrey, Sullivan Panorama or South Surrey where the market continues to favour buyers.
Surrey is now a major metropolitan hub with all the fundamentals present to benefit from inter-provincial migration but those considering a move to the Surrey area should know detached home selection is limited and they can expect to have less time to make decisions and a diminished ability to negotiate a lower price.
Are you or anyone you know thinking of buying or selling real estate in Surrey, North Delta, Cloverdale, Langley, South Surrey or White Rock this year?
Please consider us your go-to real estate resource!