February 2024 Market Update

Could it be an early Spring Market? What does the Real Estate GroundHog have in store for us this year?

Overall, the HPI Benchmark prices were up year-over-year and month-over-month in the Fraser Valley and in the City of Surrey in each category of housing (Detached, Townhome & Apartments). Abbotsford also saw price gains month-over-month. There was an increase in new listings which increased inventory over all – which provides buyers with more choice! Seems like the Spring market might be off to an energetic start.

Prices are up approximately +5% for Fraser Valley¹ when compared to February 2023 (one year ago). After approximately 6 months of small price declines month-over-month, February had a small benchmark price increase as compared to January 2024 (+0.9%). As always, if you want more detail or information for a specific neighbourhood or property, reach out – always great hearing from you.

COMING IN MARCH

We are very excited to be hosting our next webinar on Saturday March 23, 2024! For early access, add your name to the registration list and I’ll be sure to send you the official details once confirmed.

Our next session covers; Finance & Insurance Goals and Home Buying Essentials. Our good friends at  Winch+Kat Financial Solutions Inc will be discussing strategies on growing wealth to achieve your financial goals. I’m excited to be discussing home buying essentials including:

• How a REALTOR^®   assists in the home buying process
• Current market analysis and predictions (includes tips)
• Overview of the home buying process (e.g. how much do you need)
• Review a home buying example

Time will be available for Questions & Answers.

MARKET HIGHLIGHTS

There were many changes announced for the real estate industry in February. Below is a quick summary:

• Effective April 1, 2024, first-time home buyers will now be exempt from the Property Transfer Tax (PTT) on the purchase of a home worth up to $835,000.  The threshold has increased from $500,000 to $835,000, with the first $500,000 exempt from PTT.
• The newly built home exemption threshold: This threshold now eliminates the PTT for eligible first-time home buyers on new homes up to $1,100,000 (up from the previous $750,000). Increase threshold for newly built home exemption – begins April 1, 2024.
• The Federal Government announced The First-Time Home-buyer Incentive (FTHBI) will be winding-down on March 21, 2024, which is also the last day for applications. This was a shared equity arrangement where the Government provided a portion of the down-payment for the purchase of a home in exchange for shared equity. It was not a very popular program (Source: CBC)
• Extension of the “Foreign Buyer Ban” for two more years. (Officially called the Prohibition on the Purchase of Residential Property by Non-Canadians Act).  This extends the ban until January 1, 2027. There are numerous exemptions so if unsure if this applies to you send me a quick note (Source: Canada.ca)
• Inflation came in at 2.9% in January 2024, down from 3.4% in December. Economists predict the Bank of Canada (BoC) rate will decrease the overnight rate as early as June 2024. BoC will be looking to see a sustained trend in the consumer price index (CPI) before taking action. The next rate decision is March 6 and current expectation is that the rate will be held at the current rate of 5%
• The BC provincial government has introduced the BC Home Flipping Tax – The tax will apply to income from B.C. properties sold on or after January 1, 2025 if the property has been owned for 2 years or less unless an exemption applies.

Thanks for reading. Reach out with any questions or comments. I love hearing from you.

1 – The Fraser Valley Real Estate Board consists of the communities of Abbotsford, Langley, Mission, North Delta, Surrey and White Rock

February 2024 Market Update for Fraser Valley

February 2024 Market Update for City of Surrey