Navigating the Changing Real Estate Market in the Fraser Valley

Kim PhillipsReal Estate

“After a strong first quarter, BC markets are now adjusting to a much different interest rate environment,” said BCREA Chief Economist Brendon Ogmundson. “With mortgage rates surpassing 4 per cent for the first time in over a decade, the housing market over the next two years may have very little resemblance to the housing market of the past year.”

It’s no secret that the South Surrey, Cloverdale and Langley real estate market is changing. In fact, we are experiencing significant shifts in the market across the Fraser Valley. A number of factors are contributing to this cooling of the housing market including inflation, the pandemic, supply-chain issues, the current international political climate and more.

According to Statistics Canada, the country’s inflation rate reached 6.8 per cent last month, its highest level in more than 30 years. The Bank of Canada has said its goal is to keep inflation between one and three per cent. This past Wednesday, the Bank of Canada raised its interest rate a half point to 1.5 per cent, following what had already been a half point hike in April.

In the log run, the increased interest rates will allow the real estate market to return to a more balanced place. This in turn will provide first-time home buyers with a better chance of securing a home. A “normalized” housing market will benefit the economy as a whole even though homeowners may feel the pinch initially as the market adjusts.

With the increase of the costs of living right now, these changes may feel difficult. However, it’s important to remember that before the pandemic the overnight rate was at 1.75 per cent. So we are still below that level.

So with that being said, take everything you read in the news lightly and remember that these changes are intended to bring back housing affordability. If you’re considering buying or selling a home, we would be happy to answer any questions you may have about the current Fraser Valley housing market.

Click Here to book a no-obligation call with Kim to discuss your options and the right move for your unique situation. When it comes to the South Surrey, Cloverdale and Langley housing market, we are here to help and offer expert advice. Let us be your guides!