The Bank of Canada (BOC) should be pleased to see the Consumer Price Index (CPI) rose 2.9 per cent on a year over year basis in January, down from 3.4 per cent in December.

What the heck does that mean?

It means good news all around as the annual change in prices now technically fall within the BOC’s 1 to 3 per cent target range.

It’s becoming clear higher interest rates are slowing consumer spending and January reports have been encouraging. For example, according to CIBC economist Andrew Grantham even if there was a partial rebound in inflation, numbers should still be on track to come in at 2.9 per cent in the first quarter of the year.

Volatile gasoline effects have contributed to the decline and food price appreciation has been softening over the pasts 12 months, but the biggest thorn in the banks side, preventing it from cutting interest rates, continues to be shelter.  Rising 6.2 per cent annually this trend will need to reverse before the BOC will be comfortable reducing interest rates.

Most economists are expecting the earliest rate cut to arrive in June.

At the same time, the Surrey real estate market has been showing signs of recovery.  Despite ongoing inventory challenges, with the end to rate hikes seemingly here optimism is returning to our local housing market.

Buyers are getting their financing pre-approvals in place and visiting open houses in large numbers and sellers are booking market evaluations in preparation for an early spring launch of their listing.

January’s benchmark pricing for detached and attached homes in South Surrey / White Rock dipped slightly from December but were up around 6-8 per cent from the same time last year.  Pricing trends looked much the same for Surrey, Sullivan/Panorama and Cloverdale.

If you are curious what your home may be worth, now would be a good time to book a market evaluation.

We can help.  It’s what we do.

Jenn & Colin