Surrey Real Estate. Bad vibes only?

Dear clients, friends and neighbours ...
 
As I find myself wondering if I need another pair of shoes on top of last weeks hair cut and Colins next round of golf, I consider how my personal spending behavior directly impacts my profession, real estate and our local housing market. 
 
Nothing noted below will be new to you as I have been prattling on about these ideas for three dreadfully long years however the BCREA just released its depressing (but deeply validating) economic outlook.
 
At the risk of repeating myself, in recent years, British Columbia’s economy has been influenced by a series of disruptions rather than a single issue.
 
An aggressive round of interest rate increases aimed at controlling inflation was followed by heightened trade instability, driven by shifting and uncertain tariff policies from the United States. More recently, conflict in the Middle East has pushed energy costs upward, adding renewed inflationary pressure at a time when both households and policymakers were expecting more stability.
 
Together, these factors have significantly weakened consumer confidence.
 
Although inflation has eased somewhat, the overall cost of living is high. Since 2021, the costs of necessities like food and housing have climbed roughly 30 percent. These changes are not just figures on paper — they have directly impacted our everyday spending choices and reduced financial flexibility in most households.
 
And yet, jobs and wage growth continue to outpace inflation? 
 
This paradoxical environment highlights the fact that for many, the decision to buy or sell a home continues to be heavily influenced by worry about the future. To quote the BCREA;
 
“ … in short, the vibes are bad … ”
 
The April 2026 economic outlook expects real estate activity to remain below average for most of the year.  Home values and pricing expected to remain flat or experience further downward pressure.
 
Without diminishing the variables above, the relentless optimist in me feels it important buyers and sellers also consider  …

1. It all evens out in the end. When looking to make a move in a flat or contracting real estate environment; what is lost in your sale price is made up in your purchase price.  Thus, the net result is the same.

2. Timing the bottom is harder than you think. Market volatility makes timing considerations harder than ever.  Bottoms happen in late recession phases when pricing has corrected, inventory is plentiful and buyers are nervous, where several of our markets are today.

3. Demographics are all good. Economic markets are cyclical while short and long-term demographics in BC are always in support of home ownership. Population growth (sans non permanent resident inflow) is expected to normalize in 2027.  Stability in government policy and population growth will allow housing demand to strengthen. 

4. People are pent up. Softer pricing has set the stage for a strong rebound when markets stabilize.  Many of our neighbours have had their goals on hold for years now. 

So as buyers and sellers continue to wait on the sidelines, I set aside my impulse for a new pair of shoes, take a moment of silence for those of us in professions tied to economic cycles and do my best to channel the good vibes.
 
Jenn
Written by me
Photo by MARK ADRIANE on Unsplash