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

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