Mac and Cheese Food Truck Event
I filmed this market update at my Mac & Cheese Food Truck event, which I held in Dufferin Park, in Summerfield, South Surrey. I had about 140 people come to enjoy Mac & Cheese and each other's company in the park setting. It's now the 4th year that I have hosted such an event.
In response to continued rising interest rates and the summer sales cycle, we have observed a drop in real estate sales in the region. The recent increase in interest rates, reaching their highest levels in over 20 years, coupled with persistently elevated inflation, has led buyers and sellers to reevaluate their objectives.
Last month, the Bank of Canada raised its benchmark interest rate to 5%, marking the highest rate since 2001 and the 10th rate hike by the central bank since 2022. However, it is important to note that the market is not uniform throughout the region.
In Vancouver, properties with unique attributes, aesthetic appeal, and prized locations are still in high demand. Waterfront positions and properties offering scenic water views are particularly sought after. Architectural modern and contemporary homes, especially those in scenic locations, are experiencing strong demand, with some properties even setting sales records. The influx of buyers in this segment has been notable, making it a favourable time to market such properties.
South Surrey Housing Market
Moving on to South Surrey/White Rock Market, we observed a 12% decrease in sale prices from June to the end of July. However, compared to last year's period, there has been a notable 5% increase in sale prices. It is important to highlight that the average sale price in February 2023 was $1,812,028, indicating a growth of 12% until the end of July this year.
Should the Bank of Canada maintain the 5% interest rate during the first week of September, we anticipate the market to pick up again. The demand for housing remains strong, and we expect the market to respond positively. In the event of further rate increases, we may see a temporary softening of prices until stability is achieved.
We are experiencing a historically low number of listings, and the sales-to-active ratio indicates that the market is balanced, bordering on a buyers' market for detached homes. When considering listing your property, knowing that market conditions can change once the listing is active is essential. To achieve a successful sale, flexibility with pricing may be necessary. Typically, properties receive the highest number of online viewings during the first two weeks of their listing.
Rest assured that you will be guided through the process by experienced professionals like myself to help you navigate the complexities of the market. Please do not hesitate to reach out if you have any questions or require further assistance. I am here to support you throughout your real estate journey and look forward to speaking with you soon.
Have a super day!