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

Here is the market update for December 2023. The New Year has sprung and hope you enjoyed some downtime with your loved ones over the holidays. It was wonderful having some family in town and spending time enjoying good drinks and eats! Now – it is time to tackle 2024 starting with a market update! Jump to the bottom to see my 2024 market prediction.

OVERVIEW

The year over year numbers show price appreciation for all categories of housing. Prices are up approximately +5% for Greater Vancouver¹ and +6.9% for Fraser Valley² when compared to 2022. Looking further into the numbers and it reveals, each category of housing has actually experienced small price declines in each of the past three months… except for Apartments in the Fraser Valley which have remained relatively flat! As always, if you want more detail or information for a specific neighbourhood or property, reach out – always great hearing from you.

BREAKING IT DOWN

First, an explanation I go over almost every post:

SALES TO ACTIVE LISTING RATIO: Simply put, this ratio is calculated by dividing the number of sales by the number of active listings for a given period (usually monthly).

• When this factor is below 12% for a sustained period there is usually downward pressures on home prices (think “buyer’s” market).
• Between 12-20% is considered a balanced market.
• Over 20% for sustained periods generally provides upward pressure on home prices (think “seller’s” market).

Now that that is out of the way, on with the analysis.

GREATER VANCOUVER

• Detached homes have spent the past 3 months in balanced market territory with a Sales-to-Active ratio of around 12% since September 2023.
• Townhouses and Apartments remain resilient with Sales to Active ratios of approximately 22% and 21% respectively which puts them in seller’s market This has remained relatively unchanged over the past 3 months with the exception of a small dip into balanced territory (18%) for Apartments in November 2023

FRASER VALLEY

• Detached homes have spent the past 3 months either in balanced territory or flirting on the edge of Buyers market territory (below 12%)
• Townhomes have spent the past 3 months in the Fraser Valley in Seller’s market territory (above 20% sales to active listing ratio). Apartments on the other hand have remained in Seller’s market territory but have been flirting on the edge of Balanced market territory.

So what does that all mean? Where are the opportunities? First, let’s review some other factors that may impact the market in 2024.

• Bank of Canada (BoC) Policy Interest Rate: The BoC has maintained its policy interest rate at 5.0% for the past 5 rate decisions. Most economists anticipate rate cuts starting in 2024 perhaps in the 2nd or 3rd quarter. Some financial institutions have already made adjustments to their lending rates (Source: com)
• Approximately 50% of Canadian mortgages are up for renewal in 2024 – 2025 at rates that are higher than when they were originally signed (Source: com)
• Pre Sale Properties: Pre-sale properties that were purchased in 2020 – 2021 are now coming online. Some of these properties will be placed on the market as the interest rate environment is vastly different than it was 3 years ago.
• BC Government Speculation Tax was expanded to 13 more municipalities in November 2023 and may impact housing (Souce: BC Government)
• The BC Government has amended the rules for Short Term Rentals which adds additional restrictions and conditions with some changes going into effect in May 2024 (Source: BC Government)
• Towards the end of the 2024, the Foreign Buyer Ban (Officially called the Prohibition on the Purchase of Residential Property by Non-Canadians Act) is set to expire on December 31, 2024 – unless extended by the Federal Government

SO FINALLY, WHAT DOES THAT ALL MEAN?

Here is my prediction: The spring market will not be a strong as previous years but the resilience in the market will continue. We will see increased inventory as mortgages renew and more pre-sales are also listed on the market but – this increase in inventory is compared to the current low inventory levels experienced in 2023 – therefore still a tight market. There will be stiffer competition due to falling mortgage rates and the entrance of additional buyers looking to enter the market which will impact housing values. There will be  opportunities for the assignment of pre-sales and in some markets for Apartments and Townhouses.

In other words, it may be a good time to enter the market before things start warming up (figuratively and literally). I love talking about this stuff so feel free to reach out with any questions or your thoughts. Happy 2024 everyone!

1 – The Real Estate Board of Greater Vancouver consists of the areas of Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

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

The leaves are starting to change colours for one of my favourite times of the year. The colours, the cooler weather and fall sweater season is about to start!

With that said, here is your market update for the month of September for the Real Estate Board of Greater Vancouver¹ and for the Fraser Valley Real Estate Board². Like the weather, the market is changing as we start to see inventory levels moving closer to the historical long term market averages. This factors may have an impact on your decision and timing to enter or make changes in today’s real estate market. Happy to talk this through if needing context or additional information.

As always, if you are interested in obtaining information about a specific city or neighbourhood don’t hesitate to let me know. This month I’ve included a link to my calendar – feel free to book a convenient time to connect via telephone. Click here for MyCalendar. Tip: Include a note about the city or neighbourhood you want more information about and I’ll prepare some information relevant to your situation. Its quick, easy and no obligation.

I like keeping it short and to the point so if wanting more detailed information with no obligation don’t hesitate to let me know.

September 2023 Fraser Valley Market Overview

September 2023 Greater Vancouver Market Overview

1 – The Real Estate Board of Greater Vancouver consists of the areas of Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

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