Two rate cuts not enough to ignite summer home sales in the Fraser Valley
September 4, 2024
SURREY, BC — The Fraser Valley residential resale market slowed again in August, as homebuyers continue to face affordability challenges.
The Fraser Valley Real Estate Board recorded 1,067 sales in August, down by 13 per cent over last month and by 30 per cent over the 10-year seasonal average. August sales were the second slowest seasonally adjusted sales in a decade.
Inventory levels in the Fraser Valley dipped slightly in August with active listings at 8,626, down one per cent from July, but 37 per cent higher than August 2023.
“Despite two policy rate cuts by the Bank of Canada, buyers are still feeling the squeeze of overall affordability challenges in BC,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “With prices for single-family homes, townhouses and condos holding relatively flat year-over-year, many continue to face challenges buying their first home or moving up in the market, as reflected in seasonally slow August sales.”
New listings dropped nearly 20 per cent in August, to 2,778. With a sales-to-active listings ratio of 12 per cent, overall market conditions are just shy of a buyer’s market. The market is considered balanced when the ratio is between 12 per cent and 20 per cent. The last time the Fraser Valley dipped into buyer’s market territory was spring 2020.
“Buyers continue to wait on the sidelines in anticipation of more cuts to the Bank of Canada’s policy rate,” said FVREB CEO Baldev Gill. “However, we encourage anyone looking to get into the market to speak with their REALTOR® and lending professional to fully understand where interest rates may be heading in the coming months to determine the optimal long-term strategy.”
Across the Fraser Valley in August, the average number of days to sell a single-family detached home was 33, while for a condo it was 32. Townhomes took, on average, 28 days to sell.
Benchmark prices in the Fraser Valley dipped again in August, with the composite Benchmark price at $992,800.
MLS® HPI Benchmark Price Activity
Single Family Detached: At $1,523,500, the Benchmark price for an FVREB single-family detached home decreased 0.4 per cent compared to July 2024 and decreased 0.4 per cent compared to August 2023
Townhomes: At $846,300, the Benchmark price for an FVREB townhome decreased 0.3 per cent compared to July 2024 and increased 0.1 per cent compared to August 2023.
Apartments: At $546,200, the Benchmark price for an FVREB apartment/condo decreased 0.9 per cent compared to July 2024 and decreased 0.8 per cent compared to August 2023.
To view the complete package:
Out-of-the-Box Homes
With housing costs at unaffordable levels for many, some people are turning to alternative homes.
Here’s a breakdown of some of the other options out there:
Tiny living If you can compromise on space, there are tiny homes (approx. 120 to 500 sq. ft.), some of which can be hauled around, micro apartments (approx. 200 to 400 sq. ft.) in buildings with varying amenities, and shipping container homes which can be tiny
(approx. 160 sq. ft.), or the size of an average-sized home constructed of multiple containers.
Vehicle conversions For a 2-for-1 home & transportation deal, consider an RV or a converted school bus.
Houseboats This option may be for you if you are a water lover. While the price is much lower than a condo and can even offer more space, consider the maintenance costs and how you feel about seasonal weather like wind, rain, and snow while on a boat.
Eco homes In our ever-increasing eco-conscious world, there are different kinds of eco homes, such as passive Homes, designed to minimize energy consumption, and off-grid homes that are self-reliant for electricity and water.
Laneway homes Typically found in urban centres and accessed from a back lane, these homes could be new builds or converted garages. Note, that not all jurisdictions allow laneway homes.
Navigating a bidding war can be tricky, so you need to be prepared for one before it happens. As experienced REALTOR®, that’s where we can help. If moving is on your mind, call today.
604-309-5453 or email: bonetti@telus.net
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Virtual Staging: Dos and Don’ts
It’s well-documented that staged properties tend to sell faster and for more and can either be done traditionally or virtually. So, what are some reasons you might use virtual staging? Virtual staging makes sense for properties that are vacant, pre-construction, have tenants, or have dated furniture. It’s also more cost-friendly than traditional staging.
If you decide on virtual staging, it’s important to get it right to ensure you maintain credibility with potential buyers.
Here are some must-know virtual staging dos and don’ts:
DO:
• Have any repairs or updates done before the photos are taken
• Use professional virtual staging services
• Label each photo as “virtually staged”
• Sync décor choices with the style of the property
DON'T:
• Conceal or misrepresent issues or defects
• Add anything other than furnishings and accessories (e.g., don’t change the wall colour, countertops, or floors)
• Discard original photos of the room
Done right, your potential buyers will be inspired by the before and afters using virtual staging. Ultimately, you want them to see themselves living there, rather than feeling like the staging is a scam.
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REAL ESTATE NEWS
Wednesday, September 4th, 2024
The Bank of Canada lowers key interest to 4.25%
The Bank of Canada lowered the interest rate again by 25 basis points to 4.25% today, its third consecutive rate cut this year, which is expected to be an immediate relief to debt carrying Canadians with variable rates of interest, which includes some home equity lines of credit and mortgages.
"If inflation continues to ease broadly in line with our July forecast, it is reasonable to expect further cuts in our policy interest rate," said Bank of Canada governor Tiff Macklem, "With inflation getting closer to the target, we need to increasingly guard against the risk that the economy is too week and inflation falls too much"
Inflation cooled to 2.5% in July and economists predict two more 25-basis-point interest rate cuts for the Bank of Canada's remaining decisions in 2024, en route to a 2.5% policy rate in 2025.
The Bank of Canada's next interest rate decision comes on October 23, 2024
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For any questions you may have on the latest news and how it effects you, give us a call at 604-309-5453
Upsizing or Downsizing? Don't Overdo It!
Imagine you have a growing family, and you want to trade in the small sedan for something larger. So, you visit the dealership and come back with a bus.
Well, that would be upsizing a bit too much – unless you have a really huge family!
That’s the challenge of upsizing or downsizing. You need to be careful not to take it too far and end up with something that isn’t suitable. This often occurs in the real estate world.
For example, homeowners might decide to sell their home and find a smaller one. But, if they go too far, they end up with a property so small they feel claustrophobic. How do you avoid a similar scenario happening to you?
If you’re thinking of upsizing or downsizing, the best place to start is in your own home. Think about how you use the space. Do you and your family spend a lot of time in certain areas? Are there rooms and other spaces that are rarely used? Or, conversely, do you wish you had more room — such as an extra bedroom, wider driveway, separate living and family rooms, etc.?
Do a thoughtful analysis of how you’re using your current property in order to reveal clues about what you’ll want in your next home. If you’re upsizing, you might find that all you need is an extra bedroom. If you’re downsizing, you might realize that one family room, rather than separate living and family rooms, would work better for you.
So, whether you’re upsizing or downsizing, carefully decide what type of new home you need. Be as specific as possible. Consider criteria such as the number of bedrooms, entertaining space, bathrooms, driveway size, etc., that you need. Doing that will help ensure your upsizing or downsizing move will be successful.
I can help you make an informed decision.
Call today. 604-309-5453
Get to Know...
Joanne Bonetti
Joanne's formal education and training allows her to excel at every step of the real estate selling or buying process.
Joanne has always lived in the Langley area and is very knowledgeable of the Fraser Valley market.
Choosing a Real Estate Career over 15 years ago, she has seen the many changes this industry has had. Following the trends and staying informed is crucial to this business.
Outside of her career in real estate, Joanne enjoys an active lifestyle with crossfit, neighbourhood walks and spending time with family and friends.
Known by clients and colleagues for her honesty, dedication and reliability, Joanne also has a reputation for timely and focused responses to each of her client’s needs and concerns. She is a skilled negotiator and goes the extra mile for her clients. Always included is quality after-care from start to finish.
A Full-time Realtor who is committed to providing expertise tailored to your needs and learning what is important to you to reach your real estate goals, Joanne is a clear choice for anyone thinking of buying or selling their home.
A big Thank you to all her clients, friends, and family for their continued support.
Proud Supporter of the BC Cancer Foundation
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