December Monthly Market Update

As we enter the Christmas and festive season, I hope you will have a wonderful time with your family and friends. We have family over from South Africa (after 4 1/2 years of not seeing them! )and the Caribbean, and my house is full and festive at the moment! 
With sales down almost seven per cent from October, and new listings off by more than 20 per cent, the Fraser Valley housing market continues its slowing trend heading into the holiday season. Despite the market slowdown, opportunities are available, as evidenced by brisk turnover time frames.
South Surrey/White Rock market prices are now in line with March 2021. The market is put into perspective when comparing prices between January 2020 and prices of March 2021 or November 2022 - a graph would show you an increase of 29% from January 2020 but down 23% from February 2022. During the pandemic, the market was driven by low-interest rates and the government's cash injection into the economy. The home buyer got the benefit of a recession without the cost of a recession. The market is adjusting due to the interest rate hikes, and this is the first correction with supply down, and the labour market is still strong. The good news is although we anticipate an interest rate hike on Wednesday (I have to write this market update before December 7), the Bank of Canada is nearing the end of their interest rate hike period. Their main goal is to bring inflation down to 2%, and we are already seeing the success of the lower inflation resulting from the interest rate hikes. Inflation is a lagging indicator.
We should see the interest rates stabilize next year, with possible interest rates cut in 2024. Please remember that if interest rates increase, buying power decreases, and prices decrease. If interest rates are cut, buying power increases, and prices rise. 
Is this a good time to sell? Yes. If you are thinking of downsizing or upsizing and have been in your home for 3 - 5 years or more, you can still sell at a profit and then purchase on the downward trend in the market across all product types. It's all relative. I am available to sit and explain it all to you. Please reach out and schedule some time for me to chat with you.