Looking Ahead into 2025. Surrey Real Estate Update.

Dear Clients, Neighbours and Friends,

 Happy New Year!

Just wanted to reach out to share some pricing news from the latest stats package released by the Fraser Valley Real Estate Board (FVREB).

Bank of Canada interest rate cuts that began mid 2024 were not enough to ease the affordability crisis for home buyers by year end but slight declines in home prices in a few areas of the region did provide some relief for buyers looking to get into the market.

At the same time, the modest price adjustments did not discourage sellers from listing, the FVREB reported new listings in 2024 at a 10-year high.

However, annual sales were the lowest seen in ten years.

The City of Surrey accounted for the majority of 2024 sales at 51 per cent, with Langley and Abbotsford accounting for 24 per cent and 15 per cent respectively.

The negligible home price adjustments alluded to above can be seen in today’s benchmark pricing stats ..

 In December, benchmark prices for detached homes in White Rock and South Surrey ($1.869,000) were down 1.5 per cent compared to the same time last year.

Langley now at $1.606,000 up a meager 0.6 per cent and Sullivan, Panorama, Cloverdale posting the highest gains of 2.8 per cent bringing the benchmark price in those communities up to $1.485,000. 

Some slightly stronger gains were seen in the apartment category – the most affordable of all property types – however the picture looks much the same for townhomes.

The sales-to-active listings ratio of 16 per cent posted in December showed the overall market closed out the year in balance. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

Looking ahead into 2025 we see steady progress on the horizon.  Economists anticipate a couple more quarter-point rate cuts from the Bank of Canada before it slows its easing cycle and likely pauses by the second half of the year. Current forecasts from major banks suggest the policy rate could fall anywhere between another 25 to 125 basis points, depending on inflation and broader economic trends. 

The housing market is expected to stay active, with steady sales growth and modest price increases as interest rates continue to decline and demand flows back in from the sidelines. Additionally, potential future regulatory adjustments, including expanded affordability measures, could influence market activity later in the year.

 If you have been considering a move this year, now would be a good time to meet with your local realtor to chat about timing considerations.

 If you live in Surrey, South Surrey, White Rock, Delta or the surrounding communities, we can help. 

It’s what we do.

Jenn & Colin