For busy professionals navigating a big move
The one number that tells you everything
Out of every 9 detached homes for sale in South Surrey and White Rock, only 1 sold last month. That is the market in one sentence. There were 627 homes for sale and 71 sold in June. Buyers have the choice and the time, and they are using both.
Homes that sold went in about a month. The ones that sold landed near 96 cents on every dollar asked, and half sold within 34 days. One bright spot for sellers is that the well priced homes are still holding close to their number.
What is happening with rates and the economy?
The Bank of Canada held its key rate at 2.25% again on June 10. That is the fifth hold in a row, so nothing changed for a variable mortgage. The next decision is July 15. The Bank is caught between a slow economy and higher energy prices tied to the war in Iran, so it is sitting still for now. Fixed rates run on a different track. They follow the bond market, and bonds have crept up, so several lenders nudged their five year fixed rates higher this past month. Cheaper borrowing is not here yet, and it may not arrive this year.
What does this mean if you are selling?
You are up against 627 other homes, and buyers are not in a rush. They have choices and they are using them. If your price is not sharp from day one, buyers simply move to the next listing, and there are plenty of next ones. I will always tell you what you need to hear, not what you want to hear. Right now, pricing honestly is everything. More homes were withdrawn than sold last month, around 120 of them, and those were mostly the ones reaching too high.
What does this mean if you are buying?
You have negotiating room that did not exist two years ago, and not a lot of competition for it. The bigger the home you are after, the bigger your saving right now. The catch is that the wait for rates plan has not worked out the way people expected, and some buyers who sat on the fence are kicking themselves. If you have been on the fence, this is worth a conversation.
The trend I am seeing right now
Buyers came back to the table in June and started writing offers. The catch is that they are writing at today's value, not last year's. Well priced homes are moving, and hopeful ones are sitting and then getting pulled. If it were me, I would not wait for perfect conditions. In this market, clarity beats timing every single time. If you need to sell, price it honestly and use the leverage you have, because it will not be there forever.
If any of this stirs up questions about your own move, let's talk it over a cup of tea. Bring your plans, even the half formed ones, and we will map out how to get you there. My job is to be your guide through it, and that is the part I love most.
- Amanda
Source: FVREB and Bank of Canada