This video was filmed a little late as I lost my voice the week before, so I am sending it the day after my last email. I wish you a Merry Christmas.
Fraser Valley Real Estate Market
The Fraser Valley real estate market experienced a cooling trend as the holiday season approached, with buyers and sellers maintaining a holding pattern observed throughout the latter half of the year. This slowdown was attributed to the 10 interest rate increases, which have contributed to easing price pressures in Canada. However, with the recent hold by the Bank of Canada on rates for the second time, the market started to wake up this December. There has been an increase in activity, and offers have been written.
The Rate hikes were painful, but the proof of their efficacy is in the Christmas pudding. CPI has fallen from 8.1% in June of 2022 to 3.1% last month. Recall that while the target range for inflation is 1.0%-3.0%, the Bank of Canada has it eyes firmly set on 2.0% as its happy place. About 70% of economists, 18 out of 26, anticipate the rate to be 4.0% or lower by the end of 2024, significantly below the expected fed funds rate range of 4.50-4.75%. Surprisingly, amidst concerns about high interest rates and a looming recession, real estate lenders in Canada remain optimistic about 2024.
A report from CBRE Canada on November 27 reveals that 79% of lenders plan to increase loan amounts to facilitate transactions in the coming year. Additionally, respondents indicate a plan to inject 16% of net new capital into the market. Interestingly, despite the current scenario, it's an opportune time to buy a home, as competition is relatively low.
Anticipations point towards a market pickup in the spring, with further activity expected as interest rates adjust downwards in the summer. The real estate market's performance is noteworthy, with the South Surrey/White Rock average sale price standing 8.6% higher than January 2023 and sales experiencing a substantial 32.2% increase year on year.
Feel free to reach out if you have any further inquiries or require assistance. We are here to help!
I wish you and your family a very Merry Christmas and Happy Holidays! How blessed we are to live in such a beautiful area; what a great job to everyone for decorating your homes so festively. Now, let the Christmas weekend begin…