Dear Clients, Friends and Neighbours,

The Bank of Canada (BOC) reduced interest rates again!

The fifth cut in a row, the BOC reduced rates by 50 bps on December 11th bringing the overnight rate from 3.75 to 3.25 per cent.
 
In recent years homeownership has become the impossible dream but there is much good news in the pipeline. 

Here are our top 5 tips and considerations for those looking to enter the market or renew their current mortgage …

1. Ongoing Interest Rate Cuts.  The BOC expects inflation to average close to its 2 per cent target over the next couple of years.  With both the economy and inflation undershooting the BOC’s expectations policymakers are eager to get the economy back on a path to recovery.  Considering the economies current trajectory and some looming risks re: threats of incoming tariffs from the Trump administration it’s likely the BOC will have to continue making cuts.  According to the British Columbia Real Estate Association we can expect the BOC to cut to 2.5 or 2.75 per cent in early 2025.

2. Reduced Down Payments.  Currently those looking to purchase a home under $1m can make a down payment of less than 20 per cent provided they take out mortgage insurance. (CMHC) However, starting December 15th, these rules will expand slightly for homes valued up to $1.5m.  This means down payments will drop significantly for those of us who live in high-cost areas in the lower mainland such as Surrey, South Surrey and White Rock.

3. 30 Year Amortizations Expanded.  Back in July the government announced lenders could offer 30-year-amortizations on insured mortgages for first time buyers looking to purchase new construction.  As of December 15th, this measure will be extended to all first-time home buyers and all buyers of new construction.  Stretching mortgage payments over a longer period (30 years from the current 25) helps to bring down regular mortgage payments for borrowers.

4. No Stress Test for Mortgage Renewals. As of November 21, any borrower looking to switch their mortgage to another lender upon renewal will no longer need to undergo a stress test.  This change applies to insured and uninsured mortgages and enables more of us to switch to a provider that better meets our mortgage needs.

5. Existing Programs and Tax Benefits.  There are other ongoing programs that can help first time homebuyers afford their first home.  These include the First Home Savings Account FHSA, the Home Buyers Plan HBP, the First Time Home Buyers Tax Credit HBTC, New Housing Rebates on GST/HST and lastly, Land Transfer Tax Rebates.

 
Mortgage rates and rules are an especially hot topic right now as we head into what may be the busiest spring market we have seen in the last 2 years. 

Buying and selling is typically quiet at this time of year but its worth noting that sales in November were higher when compared to the last two Novembers. 
 
It would seem overall activity is finally picking up as buyers gain confidence. Increasing demand and the typical decrease in inventory we see over the holiday season will likely spur on a quick start to the spring market in 2025.
 
If you have been thinking of a move in the new year its time to buckle up.
 
We can help you get back on the track..  It’s what we do.
 
Book your no obligation, home evaluation now.
 
Jenn & Colin
 
 
 
 

We have just listed this 2 bed and 2 bath end unit in Sagebrook by Polygon.

Located in a quiet area of the complex close to the playground and the clubhouse with an outdoor pool, hot tub, exercise center, billiards, floor hockey and catering / party rooms.

Bright and airy unit with large yard off the main level. Open concept main floor, contemporary kitchen with bonus eating/flex space plus large dining and living area.

Primary suite, ensuite bath, his/her closets, generous size spare bedroom and laundry on the upper level.

Tandem garage with extra storage plus visitor parking.

Sagebrook is located within walking distance to schools, rec, parks, shops and transportation.

33 6747 203 St is asking $749,900 and showing by appt only.

View image gallery, cinematic video and home specs  HERE

Clients, Friends and Neighbours,

Check out the latest memo from the Fraser Valley Real Estate Board re Octobers uptick in sales … 

“Home sales in the Fraser Valley increased for the first time in five months following a sizable interest rate cut by the Bank of Canada in October. The Fraser Valley Real Estate Board recorded 1,330 sales in October, up 35 per cent from September, and 37 per cent year-over-year.

“After waiting it out on the sidelines for a number of months, buyers seem to be finally responding to the series of successive rate cuts by the Bank of Canada,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board.

“Whether this is an indication of further sales trends, remains to be seen, especially as the feds eye a possible additional cut before year-end.”

New listings declined in October, down 5 per cent to 3,194, but increased 26 per cent year-over-year. Overall inventory dipped in October to 8,799, down three per cent from September, but up 34 per cent over last year.

Rising sales and steady inventory levels have the Fraser Valley in a balanced market with a sales-to-active ratio of 15 per cent. The market is considered to be balanced when the ratio is between 12 per cent and 20 per cent.

“October’s healthy sales boost is a welcome development for buyers and sellers alike,” said Baldev Gill, CEO of the Fraser Valley Real Estate Board. “The coming weeks and months will shed more light on whether buyer optimism has returned now that the cycle of interest rate cuts is in full swing.”

Across the Fraser Valley in October, the average number of days to sell a single-family detached home was 34, while for a condo it was 32. Townhomes took, on average, 29 days to sell. Benchmark prices in the Fraser Valley dipped for the seventh straight month in October, with the composite Benchmark price down 0.7 per cent to $971,700.

Have you been thinking of making a move this year or early next year?  Now would be a good time to schedule a no obligation home evaluation.

We can help.  Its what we do.

Jenn & Colin

Dear Clients, Friends and Neighbours,

On October 23rd The Bank of Canada lowered its overnight policy rate by 50 basis points from 4.25 per cent to 3.75 per cent.

In the statement accompanying the decision, the Bank noted that the economy continues to operate in excess supply and economic growth has been modest.  Further, the Bank stated that inflationary pressures are no longer broad-based, and that consumer and business inflation expectations have largely normalized. Moving forward the Bank anticipates inflation will remain close to its 2% target.

While the Bank normally reserves movements larger than 25 basis points for more urgent times it seems it preferred to catch-up all at once however, it has risked setting a new precedent and will have to communicate its intentions going forward very carefully to avoid a market over-reaction.

Although we have seen a slight uptick in Surrey and South Surrey housing sales over the last month, market conditions continue to be soft overall.

This latest rate cut will do a lot to restore consumer confidence and create windows of opportunity for those with variable rate mortgages, folks with fast approaching loan renewals, folks carrying credit debt and for first time home buyers.

Although unlikely to turn the tide dramatically, this super-size rate cut may start the process of opening the market up to those who have been on the sidelines for a long time.  Unsteady economic and interest rate conditions have caused many folks to delay listing their home and consequently their goals of buying up, making a lateral move or downsizing.

If you have been one of those households waiting for the tide to turn, now would be a good time to meet with your local realtor and chat about timing considerations as many expect the Bank will be cutting rates again in December.

Its likely an early spring market is in the cards, a trend we have seen in previous market turn-arounds.  Many analysts expect the 2025 spring market to come in hot as pent-up demand to make a move has been sustained over a much longer time than in recent history.

If that is the case, one would hope the spring market starts with some balance ie: a healthy supply of new inventory that nicely matches the rising demand. 

However, if the Bank of Canada cuts rates too fast or pent-up demand and buyer FOMO come on too strong housing prices could shoot up dramatically thus eliminating the advantages of lower borrowing costs.

Either way, if you have been thinking of making a move in the near future it will be important to speak to a real estate expert who can help illuminate the ever growing list of risks and opportunities.

We can help.  It’s what we do.

Jenn & Colin

Blu living townhomes are located only minutes to local parks and beaches, Morgan Creek Golf Course, Grandview Aquatic Center and the Shops at Morgan Crossing. Local schools incl Southridge Private,  Morgan Creek Elementary, Grandview Heights Secondary.

This end unit backs onto a greenbelt, boasting spacious rooms and high ceilings throughout.

Almost 3,000sqft of living space including a daylight, walk out ground level space with wet bar and private bath perfect for self contained in-law or nanny suite.

Main living area including living room, family room and formal dining space surrounds the white shaker kitchen with large island, high end appliances, gas range and stone countertops.

4 bedrooms on the upper level including primary suite, walk in closet and en-suite bath with soaker tub.

Large walk out patio with fully fenced yard plus a sundeck with gas bbq off the main level. Full size double car garage with extra storage.

32 15988 32nd Ave is asking $1,389,800 and is showing by appt only.

View image gallery, cinematic video tour and area specs HERE