January 2023 Monthly Market Update

Happy New Year to you! May 2023 be filled with good fortune and health for you and your family! 
Looking back on last year, we saw prices peak early, feeding off the momentum of record-breaking sales in 2021; the Fraser Valley real estate market came back to earth by the close of 2022, due largely to interest rate increases designed to stave off inflation.
In South Surrey/White Rock, the average sale price levelled off at the same price point of October 2021 for a detached home. December was a busy month for me where. I saw a lot of activity in the condo market, with multiple offers on a listing I had, which proves that the market never stops and every day can bring new opportunities. 
Looking forward to 2023, we have the Bank of Canada’s interest rate hike on January 25, 2023. The Bank will simultaneously publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR. While many homeowners with variable-rate mortgages and lines of credit have seen their monthly mortgage payments increase by hundreds of dollars a month, some industry analysts believe the time for rate hikes has ended.
We have had three significant changes in the Real Estate market at the beginning of this year.
As of January 3, the B.C. government introduced the HBRP, also known as the “cooling-off period,” as a consumer protection measure to give home buyers time to consider whether a purchase is right for them. HBRP gives buyers the right to rescind their offer up to three business days after the offer is accepted. If a buyer changes their mind, they must pay the seller a 0.25% rescission fee. This would run concurrently with any subject period. 
New anti-flipping rules for residential real estate came into force in January. 1, and are designed to “reduce speculative demand in the marketplace and help to cool excessive price growth.” The principal residence exemption will not be available on the sale of your home if you’ve owned it for less than 12 months (with certain exceptions). Instead, the gain will be 100 percent taxable as business income.
Canada’s ban on foreign homebuyers is now in effect, barring commercial enterprises and individuals outside of Canada from buying residential properties in the country. Passed by Parliament in June of last year, the ban officially began on January 1 and will remain in place for two years.
These changes will have a ripple effect in the market as per usual, and if the interest rates stabilize, we should see a balanced market moving forward.
If you have any questions or want further information on the changes, please get in touch with me. I would be so happy to sit and chat with you to explain it all.