Hey Friends, Neighbours and Clients!
If you have been thinking of buying, selling or just like to follow the markets we have more things real estate to share with you!
In our last market update we forecast an uptick in housing demand if mortgage rate hikes continued to hold … on April 12 the Bank of Canada (BOC) announced it would maintain its overnight rate at 4.5% noting the first quarter of economic growth in Canada looked stronger than expected.
For now the BOC has chosen to move to the sidelines while it judges the past years impact of rate increases on inflation. Canadian inflation dipped to 5.2% in February, then 4.3% in March and this trend is forecast to continue with the possibility of another reduction to approx. 3% by mid-year, then a steady decline toward the 2% target following that.
This latest rate hold could be a tipping point in the provincial and national housing market. After months of uncertainty consumer confidence is on the rise and buyers and sellers can begin to enter a more stable housing market. Similarly, sidelined developers of new homes may begin to ramp up construction again.
This restoration of a much-needed sense of predictability is an encouraging sign for homes sales in Surrey and White Rock however in this region and across the country low supply is still an issue.
According to the president of the Fraser Valley Real Estate board “the province will require sustained inventory growth of at least 25 per cent over each of the next five years in order to normalize inventories.”
YIKES. Thus, once again we are shifting into a sellers’ market with low supply being the primary factor in price growth.
Markets have been highly variable of late and totally dependent on supply in each sub area, but we are starting to see more traffic at open houses and pricing has been on a slow and steady climb for the last 3 months.
The current benchmark price for a home in the Surrey / Cloverdale sub area sits at $1,445,900, townhouses at $970,000 and apartment at $589,300. The benchmark price for a home South Surrey / White Rock is now at $1,805,400, townhouses $925,100 and apartments $591,600.
So while demand continues to uptick we face an uphill battle on the supply side and the window to capitalize on stabilized conditions may be smaller than many had hoped.
That being said, high interest rates will likely continue to drag on the broader economy for the remainder of this year and that drag on growth will allow savvy homebuyers and sellers to achieve their real estate dreams in 2023.
To monetize the incoming spring market, reach out soon to book your home evaluation.
Jenn & Colin