Trevor Miller

The Bank of Canada has cut its overnight lending rate by 25 basis points to 2.75 per cent, it announced today, as an ongoing trade war with the U.S. begins to strain the Canadian economy.

How will this new cut affect our housing market?

The hope is that by making borrowing cheaper, it will encourage more people to take out mortgages. As a result, demand for homes could rise, potentially driving up home prices. Lower rates could also benefit current homeowners looking to refinance their mortgages or purchase additional properties.

However, the actual impact will depend on other factors like consumer confidence, housing inventory, and economic conditions. If the rate cut stimulates economic growth, it could further boost the housing market.

Want to talk real estate? It’s my favourite subject, so feel free to get in touch with me!

In 2024, the Bank of Canada cut interest rates, but it didn’t really help home buyers in the Fraser Valley. They faced the lowest sales in ten years! The Fraser Valley Real Estate Board logged a whopping 35,698 new listings but only managed to sell 14,570 homes. That’s a 1% drop from 2023 and a big 24% under the 10-year average. Surrey was the star of the show, making up 51% of the sales, followed by Langley and Abbotsford. Even though prices dipped a bit, buying a home was still a tough gig. By the end of the year, the average Benchmark home price was sitting at $965,000, which was 2% lower than last year and 4% off its peak back in March.

“While the Fraser Valley saw overall balanced market conditions for most of 2024, the low levels of buying and selling activity reflected a challenging year for many as would-be buyers waited for affordability to improve,” said Baldev Gill, CEO of the Fraser Valley Real Estate Board. “Interest rate cuts by the Bank of Canada along with recent government policies aimed at boosting overall housing supply and improving affordability, should help to increase market conditions in 2025.”

On the heels of a surge in sales in October, home sales in the Fraser Valley slowed in November with the Fraser Valley Real Estate Board recording 1,136 sales, down 15 per cent from October, but 28 per cent above November 2023 sales — “a sign that overall activity is picking up in the Fraser Valley and with it, growing buyer confidence,” according to FVREB Chair, Jeff Chadha. 

A decline in new listings chipped away at overall inventory in November, with active listings declining eight per cent to 8,125. Overall inventory, however, remains at a 10-year seasonal high and 30 per cent above November 2023 levels. New listings dropped 26 per cent in November to 2,367, but remain above the 10-year seasonal average and above levels from November 2023. The Fraser Valley remains in a balanced market with a sales-to-active ratio of 14 per cent. The market is considered to be balanced when the ratio is between 12 per cent and 20 per cent.

“With seasonality expected to slow sales activity towards year-end, we are optimistic that the new mortgage lending guidelines, which come into effect on December 15, will slowly start to work their way into the market,” said FVREB CEO, Baldev Gill. “Longer amortization periods and lower minimum down payments should help more buyers who want to get into the market in 2025.”

Across the Fraser Valley in November, the average number of days to sell a single-family detached home was 43, while for a condo it was 36. Townhomes took, on average, 33 days to sell. Benchmark prices in the Fraser Valley dipped for the eighth straight month in November, with the composite Benchmark price down 0.2 per cent to $969,500.

September FVREB stats out today show it’s still very much a buyer’s market in the Fraser Valley, with the average number of days to sell a single-family detached home at 35, while for a condo it was 37. Townhomes took, on average, 30 days to sell. Compared to August, benchmark prices in September are down 1.4 per cent to $978,800.

Nice to see the BC Real Estate and Canadian Mortgage Brokers Association speak out (and offer solutions) following the ridiculous recent BC Gov’t amendments to the Residential Tenancy Act, which make home ownership even more difficult than it already is for many potential buyers.

Read more here:
https://businessexaminer.ca/victoria-articles/item/organizations-call-on-government-to-amend-residential-tenancy-act/

Sales are down and inventory is up according to the latest market stats, leading to headlines like this:

Fraser Valley real estate sales fall double digits despite Bank of Canada interest rate cut – Fraser Valley Today

“Hesitant” buyers keep home sales slow in Metro Vancouver and the Fraser Valley – Daily Hive

So, if you’re buying or selling, what should you do? Call me to discuss your best options!

The BC Government’s new Short-Term Rental Accommodations Act is now in effect. As of May 1, 2024 short-term rentals are limited to a homeowner’s principal residence plus one secondary suite or accessory unit.

FAQ can be found HERE

YIKES! Fraser Valley Real Estate Board says last month’s sales were the second lowest recorded for a March in a decade as buyers seem to still be waiting on the sidelines for rates to drop. BUYERS, DO NOT WAIT! You could end up paying more to outbid competitors (when everyone re-enters the market at once) than you would on a new mortgage.

LINK to my Facebook Post

https://www.realtor.ca/real-estate/26641016/1403-3071-glen-drive-coquitlam

Enjoy STUNNING Park/City/Mountain VIEWS from the 14th floor of the charming Parc Laurent. Lots of space in this 1017 square foot 2BR/2BA corner unit, which features updated flooring, counters and all s/s appliances. Views from both large bedrooms, kitchen, dining and living room with south-facing balcony. Building has exercise facility, games/party room, and workshop. Underground parking stall comes w/EV CHARGER ($4000 value). Location is close to shopping and transit, yet quiet & tranquil across from GLEN PARK. Quick possession possible.