We’ve weathered storms before. Remember the 2008 market crash? We came through it. The 2016 correction? Survived that, too. COVID? We adapted, pivoted, and kept moving.
Now in 2025, with chatter about interest rates, inflation, and tariffs—it’s easy to feel uneasy. But take a deep breath. This isn’t the end of the road. The market is shifting—not crashing—and that shift is opening doors for savvy buyers, sellers, and homeowners alike.
Here’s what you need to know—and how to make the most of the moment.
What’s Happening in the Real Estate Market Right Now?
The Bank of Canada has lowered interest rates again, and more cuts are expected throughout the year. According to Dr. Sherry Cooper, Chief Economist at Dominion Lending Centres, the overnight rate could drop to 1.75% by year-end, which would significantly ease borrowing costs.
At the same time, global economic factors like trade tariffs are stirring uncertainty, but the big picture? Lower rates = more activity in the housing market.
If You Own a Home
Mortgage up for renewal? You could be looking at lower monthly payments.
Thinking renos? Refinancing may now be more affordable than ever.
Have a HELOC? Your payments might already be dropping—or will soon.
This could be a great time to assess your financial picture and use your home’s equity wisely.
If You’re Selling a Home
Yes, inventory is higher than it’s been in years—but that’s not a bad thing.
More listings mean more buyers are out looking. They’re serious. They’re informed. And they’ve got access to better borrowing options.
Plus, with the spring market warming up and competition still catching up, your home has a real chance to stand out—especially if priced and marketed right.
Pro tip: Homes that are well-prepared and strategically listed are still selling fast—and at strong prices.
If You’re Looking to Buy
Lower interest rates mean lower monthly payments, making homeownership more accessible.
But here’s the heads-up: more competition is coming. Buyers who’ve been sitting on the sidelines are jumping back in. That window of opportunity won’t stay open forever—so having your financing in place and a plan ready could make all the difference.
What Should You Do Next?
Every homeowner’s situation is different. Whether you’re buying, selling, refinancing—or just wondering if you should do anything at all—now is the time to get clear on your options.
Let’s chat. No pressure, no pitch—just a real conversation about what makes the most sense for you in today’s real estate market.
Have questions? Want to run some numbers? Thinking about a move this year?
CREA & BCREA Push Housing to the Forefront of the Federal Election Debate
3. Doubling Community Housing A mix of new policies—including a housing bond, an affordable housing tax credit, and expanded CMHC programs—would support the construction, acquisition, and maintenance of affordable housing.
4. Unlocking Land for Housing By repurposing surplus and underutilized lands, expanding the Build Canada program, and leveraging municipal land, CREA aims to create more community and affordable housing opportunities.
5. Strengthening Housing Supply Chains Reducing interprovincial trade barriers and diversifying import sources would help Canada secure housing materials without excessive reliance on the US market.
As Canada heads toward a crucial federal election, housing remains one of the country’s most pressing issues. In response, the Canadian Real Estate Association (CREA) and the British Columbia Real Estate Association (BCREA) are working to ensure that housing policy takes center stage in the national debate.
BCREA is actively supporting CREA’s pre-election campaign, which includes a mid-April web-based leadership debate and a dedicated resource page on its website. The campaign highlights a ten-part housing strategy aimed at creating a more sustainable and resilient housing ecosystem, especially as the country navigates economic uncertainty and looming US trade tariffs.
CREA’s 10-Part Housing Strategy
1. Establishing a Housing Safety Net To protect Canadians from economic downturns, CREA proposes housing-focused benefits, stronger social assistance, mortgage protection measures, and better preparation for an increase in asylum seekers.
2. Protecting Renters from Homelessness With market instability, vulnerable renters face increased risks. CREA calls for a freeze on no-fault evictions, expanded rent banks, and new funds to preserve lower-rent housing.
6. Building a Skilled Housing Workforce CREA supports re-skilling displaced workers for housing-related careers and attracting skilled tradespeople from the US to bolster Canada’s homebuilding capacity.
7. Reforming Taxes to Encourage Development Homebuilding should not be hindered by excessive taxes and fees. CREA advocates for incentives and new infrastructure funding models instead of reliance on development charges.
8. Streamlining Housing Development Regulations By simplifying approvals and cutting red tape, CREA aims to accelerate home construction and improve housing outcomes.
9. Boosting Innovation in Homebuilding Increased investment in low-carbon housing, tax credits for innovation, and better procurement practices would support faster, more affordable, and environmentally friendly home construction.
10. Expanding Indigenous Housing A for-Indigenous, by-Indigenous approach to urban, rural, and northern housing is critical. CREA calls for targeted investments and federal support to meet the unique housing needs of First Nations, Inuit, and Métis communities.
The Time for Action is Now
With affordability concerns mounting, housing must be a top priority in the upcoming federal election. CREA and BCREA are ensuring that candidates and policymakers focus on long-term solutions that protect homeowners, renters, and communities. By advocating for a more resilient housing market, these organizations are working to make homeownership and rental stability a reality for all Canadians.
Top 5 Tips to Be Ready When Your Dream Home Hits the Market
In today’s fast-moving real estate market, preparation is key. The last thing you want is to find your dream home—only to lose it because you weren’t ready to act. Here are five essential steps to ensure you’re ready to make an offer the moment the right home comes along.
1. Get Your Mortgage Documents in Order
Before you start house hunting, have your financial paperwork ready. This includes: ✅ Government-issued ID ✅ Proof of income & employment ✅ Bank statements & proof of down payment ✅ A mortgage pre-approval letter Having these documents ready will help you move quickly when you find the right home.
2. Know Your Offer Terms
Be clear on what you’re willing to offer, including: ✔️ Purchase price & deposit amount ✔️ Closing date preferences ✔️ Any conditions (like financing or home inspection) This speeds up the process when it's time to submit an offer.
3. Be Ready to Make a Personal Connection
In competitive markets, a personalized letter to the seller can make a difference. Express why you love the home and how it fits your future—it just might give you an edge over other buyers.
4. Have an Expert Review Your Deal
Your real estate agent is your biggest asset when structuring an offer, negotiating, and ensuring all paperwork is in order. For extra peace of mind, consider a real estate lawyer to review your contract before signing.
5. Stay Flexible and Act Fast
When the perfect home comes on the market, hesitation can mean losing out. Be prepared, act quickly, and trust your strategy.
With the right preparation, you’ll be ready to secure your dream home with confidence and ease!
Tariffs, economic uncertainty stall spring market in the Fraser Valley
SURREY, BC – March home sales in the Fraser Valley remained nearly 50 per cent below the 10-year average — making for the slowest start to the spring market in more than 15 years.
The Fraser Valley Real Estate Board recorded 1,036 sales in March, up 13 per cent from February, but still 26 per cent below sales recorded this time last year.
Following a decline on the Board’s Multiple Listing Service® (MLS®) in February, new listings increased 22 per cent in March to 3,800. Overall inventory is at a decade-high level, with 9,219 active listings, 49 per cent above March 2024 and 59 per cent above the 10-year seasonal average.
The overall sales-to-active listings ratio continues to signal a buyer’s market in the Fraser Valley, with a ratio of 11 per cent. The market is considered to be balanced when the ratio is between 12 per cent and 20 per cent.
Across the Fraser Valley in March, the average number of days to sell a single-family detached home was 31, while for a condo it was slightly higher at 33 days. Townhomes took, on average, 27 days to sell.
The composite Benchmark price in the Fraser Valley increased just under half a per cent in March, up 0.4 per cent to $974,400.
Canada’s Housing Market in 2025: Opportunity or Uncertainty?
Prices Holding Steady… For Now
Despite shifting supply and demand, home prices remain remarkably stable. The MLS Home Price Index dipped by just 0.08% month-over-month, while the national average price rose 1.1% year-over-year to $670,064. However, this stability feels fragile. If trade tensions escalate, housing demand could take a hit, putting downward pressure on prices in affected regions.
Trade War Threat: A Game-Changer for Housing?
The biggest wildcard in the housing market right now is the potential U.S.-Canada trade war. Proposed tariffs
As we step into 2025, Canada’s housing market is sending mixed signals. On one hand, buyers are seeing a welcome surge in new listings, providing more choices and negotiating power. On the other, looming trade tensions with the U.S. threaten economic stability, casting a shadow over the market’s future. Let's break down the key trends shaping the real estate landscape and what they mean for buyers and sellers alike.
A Surge in Listings: A Buyer’s Market Emerging?
January brought a surprising 11% jump in new listings, the largest month-over-month increase in years (pandemic aside). This surge is particularly noticeable in competitive markets like British Columbia and Ontario, where sellers may be acting proactively in response to economic uncertainty. More listings mean more opportunities for buyers, who now have additional leverage in negotiations.
Sales Slow as Trade War Fears Set In
Despite the increase in available homes, national sales dipped by 3.3% in January, with the sharpest drop occurring towards the end of the month—right as headlines about potential U.S. tariffs dominated the news. While year-over-year sales are still up 2.9%, buyer hesitation is creeping in as economic uncertainty looms.
include a 25% tax on most Canadian exports and 10% on energy, which could hit Canada’s economy hard. This isn’t just about numbers—these tariffs could impact jobs, wages, and overall consumer confidence, particularly in trade-dependent cities.
Spring Market Outlook: A Balancing Act
CREA is still forecasting an 8.6% increase in home sales for 2025, citing lower borrowing costs and pent-up demand. Prices are expected to rise 4.7% by year-end, bringing the national average to $722,221. However, these projections were made before trade tensions escalated. If the trade war becomes a reality, the spring market could be far less active than predicted.
What Does This Mean for You?
The Canadian housing market is at a turning point. The surge in listings provides more opportunities for buyers, while sellers must navigate an increasingly competitive and uncertain landscape. Meanwhile, the looming trade war could upend market stability, making flexibility and strategic decision-making more critical than ever.
For buyers, this is a moment of opportunity—more inventory means better choices and potentially better deals. For sellers, timing and strategy will be key to maximizing value in an evolving market.
MARCH 13-16, 2025 | BC Place Stadium
I have FREE tickets available for the BC Home & Garden Show
I will be at the show on March 15th from 11-1 pm this year with my wife Samantha from Kleen Design, if you have any design questions or would just like to connect for a drink, text me when you are at the show...
Replace the Air Filter: Check the furnace air filter and replace it. A clean filter allows for better airflow, improves efficiency, and helps maintain indoor air quality.
Check the Thermostat: Test your thermostat to ensure it's working correctly. Consider upgrading to a programmable thermostat if you don't have one, as it can help you save energy and money.
Inspect the Vents and Registers: Ensure that all vents and registers are clear of obstructions such as furniture, curtains, or rugs. Proper airflow is crucial for efficient heating.
Inspect the Exhaust Flue: Check the furnace exhaust flue for any obstructions or debris.
Schedule Professional Maintenance: Consider hiring a professional HVAC technician to perform a thorough inspection and tune-up. They can identify and address potential issues before they become major problems.
Clean/Lubricate blower motor
Check for gas leaks and carbon monoxide
Inspect heat exchanged
Pilot safety system
Clean and check burners
Test limit switches and main burners
Buyers gaining upper hand in Fraser Valley real estate market
SURREY, BC — For the first time in four months, home sales in the Fraser Valley have increased as buyers capitalize on more selection and weakening prices.
The Fraser Valley Real Estate Board recorded 920 sales in February, up 13 per cent from January, but 26 per cent below sales recorded in February 2024.
Despite a nine per cent drop in newly listed homes on the Board’s Multiple Listing Service® (MLS®), new listings remained 14 per cent above the 10-year seasonal average, at 3,121. Overall inventory remains high, at 8,070 active listings, 45 per cent above February 2024 and 55 per cent above the 10-year seasonal average.
The overall sales-to-active listings ratio continues to signal a buyer’s market in the Fraser Valley, with a ratio of 11 per cent. The market is considered to be balanced with the ratio is between 12 per cent and 20 per cent.
Homes across the Fraser Valley sold in fewer days in February compared to January. The average number of days to sell a single-family detached home was 39, while for a condo it was 36. Townhomes took, on average, 32 days to sell.
The composite Benchmark price in the Fraser Valley dipped less than a quarter of a per cent in February, down 0.2 per cent to $962,500.
BC Home Flipping Tax: What Homeowners Need to Know
As of January 1, 2025, the BC Home Flipping Tax is officially in effect. This new tax targets homeowners who sell residential properties, presale contracts, or assignments within two years of ownership. It’s designed to curb speculative activity in the real estate market and promote long-term ownership.
If you’re a homeowner in British Columbia, here’s a comprehensive breakdown of how this tax works, who it applies to, and what you need to consider before selling your property.
What Is the BC Home Flipping Tax?
The BC Home Flipping Tax is a provincial initiative to discourage quick property sales for profit, often referred to as "flipping." It applies to income from the sale of properties held for less than two years, with a declining tax rate that diminishes to zero after 730 days of ownership.
The tax aims to stabilize the housing market by reducing speculative investments and encouraging buyers to view property as a long-term investment.
How the BC Home Flipping Tax Works
Here’s how the tax is structured:
Tax Application
Applies to residential properties, presale contracts, or assignments sold after January 1, 2025, if owned for less than 730 days.
Includes properties purchased before January 1, 2025, but sold after this date and owned for less than two years.
Tax Rate
20% tax rate on income from sales within the first 365 days of ownership.
The rate gradually decreases between 366 and 730 days of ownership until it’s fully eliminated.
Who Pays?
This tax applies to all sellers, including individuals, corporations, partnerships, and trusts, regardless of residency status.
Exemptions to the BC Home Flipping Tax
While the tax applies broadly, certain situations qualify for exemptions. Here are some of the key exemptions:
1. Primary Residences
Homes that are your principal residence may be exempt, but specific criteria and documentation are required.
2. Life Events
Certain life circumstances allow for exemptions, including:
Death of the Owner: If the property owner passes away.
Divorce or Separation: When a property is sold due to the end of a marriage or common-law relationship.
Involuntary Disposition: Forced sales due to natural disasters or other unavoidable events.
3. Filing Requirements
Exemptions are not automatic. Homeowners must file the necessary paperwork and provide proof of eligibility to qualify for exemptions.
Key Differences: BC Home Flipping Tax vs. Federal Property Flipping Tax
Both taxes target short-term sales, but they are separate and distinct:
Federal Property Flipping Tax: Applies Canada-wide to properties held for less than 12 months, treating profits as regular income.
BC Home Flipping Tax: Provincial, with a two-year timeline and a declining tax rate.
It’s possible to be subject to both taxes, depending on your situation.
What Homeowners Need to Consider
1. Timing Your Sale
Selling your property before the two-year mark could mean losing a significant portion of your profit to this tax. If possible, aim to hold onto your property for at least 730 days to avoid the tax entirely.
2. Understanding Exemptions
Life happens—whether it’s a new job in a different city or a divorce. Familiarize yourself with the exemptions and ensure you meet the filing requirements to avoid unnecessary taxation.
3. Financial Planning
If you must sell within two years, factor the tax into your financial plans. A 20% tax on profits from a sale in the first year can significantly impact your bottom line.
4. Market Dynamics
The introduction of this tax could lead to reduced speculative activity, potentially stabilizing home prices. Be aware of how this might influence the value of your property when selling.
Examples of How the BC Home Flipping Tax Applies
Example 1: Selling Within a Year
You bought a townhouse in February 2024 and sell it in August 2025 for a $100,000 profit. Since you owned the property for less than 365 days, you’ll owe a 20% tax on the profit, totaling $20,000.
Example 2: Job Relocation
You purchased a home in 2023 but must sell it in April 2025 due to a job transfer to another province. If you meet the exemption requirements, you can avoid paying the tax.
Example 3: Divorce or Separation
A couple who co-owns a home for 18 months decides to sell during their separation. Provided they meet the necessary criteria and file the required paperwork, they may qualify for an exemption.
How to Prepare as a Homeowner
1. Consult a Professional
Speak with a tax advisor or accountant to understand how this tax might apply to your situation and whether you qualify for exemptions.
2. Organize Your Records
Keep thorough records of your property’s purchase, sale, and any relevant documentation to support your exemption claims.
3. Think Long-Term
When buying a property, consider your long-term plans to avoid being caught by this tax if you need to sell quickly.
Conclusion
The BC Home Flipping Tax represents a significant shift for homeowners in British Columbia. Understanding how this tax works, knowing the available exemptions, and planning your real estate moves strategically can help you minimize its impact.
Whether you’re planning to sell or simply want to stay informed, taking proactive steps now can save you time, stress, and money down the road. Stay ahead of the game, and don’t hesitate to consult professionals for tailored advice.
FAQs
1. Does the BC Home Flipping Tax apply to properties purchased before January 1, 2025?
Yes. If the property is sold after January 1, 2025, and has been owned for less than two years, the tax applies.
2. Are all primary residences exempt from the tax?
No. While primary residences can qualify for an exemption, you must meet specific conditions and file the necessary paperwork.
3. How is the tax rate calculated for sales between 366 and 730 days?
The tax rate gradually decreases over time and is fully eliminated once ownership surpasses 730 days.
4. Can I qualify for an exemption without filing the required paperwork?
No. Proper documentation is mandatory to claim an exemption. Failure to file could result in being taxed.
5. Could I owe both the BC Home Flipping Tax and the federal property flipping tax?
Yes, depending on the timing and circumstances of your sale, you may be subject to both taxes.
Wills, Powers of Attorney, and Estate Planning: Why You Should Plan Now
Many people put off estate planning, thinking it’s something to worry about later in life. However, the reality is that having an estate plan in place now is one of the best ways to protect your loved ones and ensure your wishes are carried out if the unexpected happens.
Estate planning isn’t just about dividing assets—it’s about deciding who will manage your affairs, who will take care of your children, and how your financial and healthcare decisions will be handled if you are unable to make them yourself.
Even if you have a will, your estate will likely need to go through probate, which is the legal process of validating a will and granting your executor the authority to distribute your estate. Probate can be time-consuming and expensive, but there are ways to simplify or even avoid the process, such as:
Holding assets in joint tenancy – Property owned jointly with rights of survivorship automatically transfers to the surviving owner without going through probate.
Designating beneficiaries on financial accounts – Many bank accounts, insurance policies, and investment accounts allow you to name a direct beneficiary, bypassing probate.
Creating a trust – A trust can help manage and distribute assets outside of the probate process.
If you want to explore strategies to protect your assets and minimize probate, consider speaking with an estate planning professional.
Final Thoughts: Protect Your Legacy
You’ve worked hard to build financial security—don’t leave important decisions about your estate to chance. Estate planning ensures that your wishes are respected, your loved ones are taken care of, and your assets are distributed according to your intentions.
Whether you need a will, a power of attorney, or an entire estate plan, taking action now can provide peace of mind for the future. If you’re unsure where to start, reach out to an estate planning professional who can guide you through the process.
By planning today, you’re securing your legacy for tomorrow.
MARCH 13-16, 2025 | BC Place Stadium
I will have tickets again for the BC Home and Garden Show. stay tuned on how to get tickets…
Essential Estate Planning Documents
A comprehensive estate plan includes more than just a will. Here are the key documents you should consider:
1. Will
A will is the cornerstone of any estate plan. It outlines how your assets will be distributed, who will manage your estate, and, most importantly, who will become the guardian of your children if needed. Without a will, these critical decisions may be left to the courts.
2. Power of Attorney
A power of attorney allows you to designate someone you trust to handle your financial affairs if you become unable to do so yourself. This ensures that your bills are paid, your investments are managed, and your financial well-being is protected.
3. Representation Agreement
A representation agreement allows you to appoint someone to make personal and healthcare decisions on your behalf if you become mentally or physically incapable. This document is crucial in ensuring that your healthcare wishes are followed.
4. Advance Care Plan
An advance care plan is a written document outlining your healthcare wishes and instructions for future medical care. It may include:
A power of attorney for financial decisions
A representation agreement for healthcare decisions
An advance directive specifying what kind of medical treatment you do or do not want in certain situations
Having an advance care plan in place helps ease the burden on loved ones, ensuring they know your wishes and can advocate for your best interests.
Fraser Valley’s decade-high inventory could open doors for buyers.
SURREY, BC — Growing inventory and stable prices could lead to opportunities for buyers in the Fraser Valley market this winter despite uncertain economic conditions.
Newly listed homes jumped 167 per cent from December to January, with 3,432 listed on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®). At 7,251 active listings, inventory is at a 10-year seasonal high, 54 per cent above the 10-year average.
While sales remained slow in January, with 818 properties sold (down 18% from December), the combination of stable prices and abundant selection presents potential opportunities for buyers to get back into the market.
The sales-to-active listings ratio appears to bear this out. At 11 per cent, the overall ratio is signaling a buyer’s market, with detached homes firmly in buyer’s market territory. The market is considered to be balanced when the ratio is between 12 per cent and 20 per cent.
It took longer to sell homes in January compared to December. Across the Fraser Valley, the average number of days to sell a single-family detached home was 52, while for a condo it was 42. Townhomes took, on average, 38 days to sell.
Benchmark prices in the Fraser Valley held relatively steady in January, with the composite Benchmark price down 0.03 per cent to $964,800.
As of January 1, 2025, the BC Home Flipping Tax is officially active. This new tax targets speculative property flipping to promote long-term homeownership and market stability. It applies to properties sold within 730 days (two years) of ownership, including sales of presale contracts or assignments. The tax rate starts at 20% on profits for properties sold within the first year of ownership and gradually decreases, reaching zero after two years. Importantly, this tax applies to individuals, corporations, partnerships, and trusts, regardless of residency status.
Certain exemptions are available to homeowners. Primary residences can qualify for exemptions if specific criteria are met, but filing the appropriate paperwork is mandatory. Life events such as death, divorce, job relocation, or forced sales due to natural disasters may also allow for exemptions, provided the proper documentation is submitted.
The BC Home Flipping Tax differs from the federal property flipping tax. The federal tax applies to properties sold within 12 months, treating profits as regular income, while the BC tax spans a two-year timeline with a sliding tax rate. It is possible to be subject to both taxes depending on your sale’s timing and circumstances.
To navigate this new tax, homeowners should consider a few key strategies. First, aim to hold onto your property for at least two years to avoid the tax entirely. Second, familiarize yourself with the available exemptions and ensure you file the necessary paperwork if eligible. Third, plan ahead and factor in potential taxes when calculating your property’s profits. Lastly, seek guidance from a tax advisor or professional to fully understand your obligations and minimize your tax burden.
By staying informed and planning strategically, you can navigate this new tax effectively and make informed decisions about your property investments.
As the year comes to a close, I want to take a moment to express my deepest gratitude for your trust, support, and friendship. Whether we worked together this year or in the past, your belief in me has been invaluable, and I am truly honored to have been part of your journey.
2024 has been filled with exciting milestones and memorable moments, and I couldn’t have achieved them without amazing clients and friends like you. I am so grateful for the opportunity to help you with your real estate goals and look forward to continuing to support you in any way I can in the future.
As we welcome 2025, I wish you and your loved ones a year filled with health, happiness, and prosperity. May this new year bring fresh opportunities, new adventures, and plenty of reasons to celebrate.
Top 5 Tips for Selling Your Home During the Holidays
The New Year is a time for fresh starts and ambitious goals, but sticking to those resolutions can feel like an uphill battle. Studies reveal that nearly 70% of people abandon their resolutions within months. The good news? With the right approach, you can set yourself up for success. Here are five expert-backed strategies to help you stay on track and achieve your goals.
1. Start Small and Build Momentum
Rather than overhauling your life overnight, break your resolution into smaller, manageable steps. For example, instead of vowing to “get fit,” commit to taking a 10-minute walk every day or swapping one unhealthy snack for a healthy option. Small wins build momentum and confidence, making it easier to stick to your plan.
2. Focus on the Bigger Picture
Think about what achieving your resolution will help you accomplish. If your goal is to save money, imagine the vacation you’ve been dreaming of or the financial freedom you’ll gain. Keeping your “why” in mind gives your resolution purpose and makes it easier to stay motivated.
3. Frame Your Goals Positively
Rather than framing your resolution as breaking a bad habit, think in terms of creating a positive goal. For instance, instead of “stop procrastinating,” set a goal to “spend 15 minutes every morning tackling important tasks.” This approach focuses on growth and progress rather than deprivation.
4. Find a Support System
Don’t go it alone! Share your resolutions with friends or family members who can encourage you along the way. Even better, find a buddy with a similar goal so you can hold each other accountable and celebrate progress together.
5. Practice Self-Compassion
Nobody is perfect, and slip-ups are part of the process. When you miss a day or fall short of your goal, be kind to yourself and move forward without guilt. According to Tamara Russell of the British Psychological Society, practicing self-compassion can not only help you stick to your resolutions but also make you more compassionate toward others.
Resolutions are an opportunity to grow, not a test of perfection. By starting small, focusing on the bigger picture, framing your goals positively, enlisting support, and being kind to yourself, you can turn your New Year’s intentions into lasting change. Here’s to making this year your best one yet!
New listings at 10-year high in 2024, but affordability still the elephant in the room in Fraser Valley
SURREY, BC — Bank of Canada interest rate cuts that began mid-year were not enough to ease the affordability crisis for many home buyers in the Fraser Valley in 2024, leading to a decline in annual sales.
The Fraser Valley Real Estate Board reported new listings of 35,698 for the year ended December 31, 2024, a 10-year high and nine per cent above the 10-year average. However, annual sales recorded on the Multiple Listing Service® (MLS®) were the lowest seen in ten years at 14,570, a decline of one per cent over 2023 and 24 per cent below the 10-year average. The City of Surrey accounted for the majority of 2024 sales at 51 per cent, with Langley and Abbotsford accounting for 24 per cent and 15 per cent respectively.
The composite Benchmark home price in the Fraser Valley closed the year at $965,000, down two per cent year-over-year, and down four per cent from its 2024 peak in March.
The Board recorded 994 sales on its MLS® in December, a decline of 13 per cent from November, but 19 per cent above sales from December 2023.
New listings declined 46 per cent from November to December, from 2,367 to 1,288, contributing to a 23 per cent decline in overall inventory in December. With a sales-to-active listings ratio of 16 per cent in December, the overall market closed out the year in balance. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.
It took longer to sell townhomes and condos in December compared to November. Townhomes spent 36 days on the market, up from 33 days in November, while condos spent 38 days on the market, up from 36 days in the previous month. Single-family homes spent 43 days on the market — no change from November.
The composite Benchmark home price in the Fraser Valley continued to slide for the ninth straight month, down 0.5 per cent compared to November.
Exciting News for Fraser Valley Homeowners and Buyers: What the Latest Rate Cut Means for You
The Bank of Canada has made a significant move to wrap up the year, announcing its fifth consecutive rate cut. The benchmark rate has been lowered by 50 basis points to 3.25%—the lowest level since October 2022. This decision could have a profound impact on homeowners, buyers, and anyone considering mortgage options in the Fraser Valley.
Why the Rate Cut? The Bank of Canada cited three main factors for this decision:
Stable Inflation: Inflation is hovering around 2%, well within the target range of 1-3%.
Excess Supply in the Economy: This indicates that there’s more capacity than demand, prompting measures to stimulate growth.
Softer Growth Indicators: Economic activity has been weaker than expected, necessitating action to bolster recovery.
The goal of this rate cut is to support economic recovery while maintaining inflation within its desired range.
How This Impacts Fraser Valley Homeowners and Buyers
Lower Payments for Variable-Rate Borrowers If you have a variable-rate mortgage or line of credit, this change could lead to reduced monthly payments. For many, this provides some financial breathing room, especially as the cost of living continues to be a challenge.
Opportunities for Buyers, Renewals, and Refinances If you’re considering buying a home, renewing your mortgage, or refinancing, the rate cut comes alongside new federal rule changes set to take effect on December 15th:
Increased Buying Power: Homes up to $1.5 million (previously $1 million) can now qualify with less than a 20% down payment.
Longer Amortizations: First-time buyers and those purchasing new builds can now spread payments over 30 years (up from 25), making monthly costs more manageable.
Simplified Refinancing for Uninsured Mortgages: The stress test will no longer apply in certain cases, making it easier to shop for competitive rates and better terms.
Why Now is the Time to Act The combination of lower interest rates and new government policies creates a unique opportunity for Fraser Valley homeowners and buyers. Whether you’re considering upgrading, investing, or simply looking for ways to maximize savings, this is the time to explore your options.
Looking Ahead The next Bank of Canada announcement is scheduled for January 29, 2025. While we can’t predict what’s next, staying informed and planning strategically can help you make the most of the current market conditions.
If you’d like to discuss how these changes might impact your real estate goals, I’m here to help! Reach out to start planning your next steps.
Stay tuned for more updates on the Fraser Valley real estate market and how to navigate it successfully…
‘Twas the night before Christmas and all through the house Not a creature was stirring, not even a mouse
My signs were all out and brochure boxes loaded The ad copy in and the lock boxes coded.
I just wrote an offer with that 1 perfect buyer egads it’s so low…they say they won’t go any higher
So I call up my seller with the not so good news And they agree to meet with me…what have they got to lose
So we sit at the table & I do what I do best Crunch numbers, talk deadlines and give it a rest
So the sellers agree and get ready to sign And then they exclaim… “We’ve got an equity line!”
More crunching & digging to find extra money The sellers are smiling…but this really isn’t funny
3 months on the market with nary a showing Now I have an offer and not sure how it’s going
And that’s when they ask what I don’t want to hear “Can you cut your commission?” and they crack open a beer
What I need is a Martini while relaxing by a pool I reply that “I can’t…it’s a company rule”
So I ring up the buyer right there on the spot I need to know if they’ll consider a counter or not
To my surprise they speak up, “we’ve got $5000 more” If its signed tonight we’ll accept it but absolutely no more.
So back to sellers for signatures on the line They hem & they haw & then finally sign
I email the buyer and get their reply Accepted as countered, now I’m flying high
The sellers are happy as I walk out the door It’s just 9pm, I can stop at the store
I pick up some goodies for my own Christmas treat Head home to chill out and put up my feet.
When I drive up to my house it is such a great sight All lit up for the holidays with the lights oh so bright
A smile crosses my face as I thought it just might “Merry Christmas to All and to All a Good Night”!
Shelly Brunette
Top 5 Tips for Selling Your Home During the Holidays
he holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Really. Once you've committed to the challenge, don your gay apparel and follow these tips…
Deck the halls, but don’t go overboard. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
Hire a reliable real estate agent. That means someone who will work hard for you and won't disappear during Thanksgiving, Christmas or New Year's. Ask your friends and family if they can recommend a listing agent who will go above and beyond to get your home sold. This will ease your stress and give you more time to enjoy the season.
Seek out motivated buyers. Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.
Price it to sell. No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.
Make curb appeal a top priority. When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
Fraser Valley home sales returning to seasonal norms in November after October surge.
SURREY, BC — Following a healthy boost in sales in October, Fraser Valley home sales dropped in November as slower seasonal buying trends set in amid balanced market conditions.
The Fraser Valley Real Estate Board recorded 1,136 sales in November, down 15 per cent from October, but 28 per cent above November 2023 sales.
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.
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.
Earlier this cycle, there were more job vacancies than people looking for work, so the drop in job openings didn't have a material impact on the economy. But that's no longer the case. September's inflation data confirms that the job market trend is downward.
Economic growth has been below potential since 2022, and preliminary third-quarter data indicate another slowdown to about 1.3% growth in Q3, well below the BoC's initial forecast. Hiring intentions remain woefully inadequate in the face of staggering population growth.
The 2024-2026 mortgage renewals "cliff" is manageable as long as the Bank of Canada cuts interest rates and the job market and economy don't weaken too much. Owing to the 75 basis point rate decline through September and the 50 bps cut in October, not all mortgages will renew at higher rates next year.
Royal Bank economists estimate that total mortgage payments in 2025 will increase by about 0.1% of total household disposable income as many extend amortizations to keep payments low.
The jobless rate, though declining a tick in September to 6.5%, is meaningfully higher than before the pandemic and is likely to rise to 7% next year.
The total number of job openings in the economy is 25% below what it was a year ago, and if it were to weaken further, the unemployment rate would rise even more.
Business start-ups are also sluggish, reflecting a business climate undermined by overly restrictive monetary policy.
The BoC must now aggressively cut interest rates. Monetary policy remains highly restrictive.
The Bank of Canada's Business Outlook Survey shows no sign of stabilization in the short term. Indeed, hiring intentions were virtually unchanged in Q3 and remained below the historical average. A significant number of companies are overstaffed.
The latest data show that the private sector vacancy rate is plummeting and has reached its lowest level since 2016. More than half of all small- and medium-sized businesses are fearful of weakening demand for their goods and services.
The number of active companies fell sharply in the second quarter due to a sharp jump in business closures and a low number of start-ups. The stagnation in the number of active companies in Canada since 2022 is undoubtedly one consequence of the extremely powerful tightening of monetary policy.
Thanks to everyone who went to the home show…
We had a great time at the Fall Home Show. Thanks to everyone who came out.
Hope to see you again at the Spring show…
Winterizing Your Home – Inside and Out!
With temperatures falling across many parts of the country, it’s a good time to start thinking of preparing your home for harsh winter conditions like snow and ice.
This process, called winterization, is usually performed in the fall before excessive cold arrives. Maintenance on both the exterior and interior of your home during this time can not only protect the structure from weather-related catastrophes, but it can also save you money by way of lower utility bills.
Rising home sales a sign of market shift in the Fraser Valley?
SURREY, BC — Home sales in the Fraser Valley increased for the first time in five months following a sizable interest rate cut by the Bank of Canada in October.
The Fraser Valley Real Estate Board recorded 1,330 sales in October, up 35 per cent from September, and 37 per cent year-over-year.
New listings declined in October, down 5 per cent to 3,194, but increased 26 per cent year-over-year. Overall inventory dipped in October to 8,799, down three per cent from September, but up 34 per cent over last year. Rising sales and steady inventory levels have the Fraser Valley in a balanced market with a sales-to-active ratio of 15 per cent. The market is considered to be balanced when the ratio is between 12 per cent and 20 per cent.
Across the Fraser Valley in October, the average number of days to sell a single-family detached home was 34, while for a condo it was 32. Townhomes took, on average, 29 days to sell.
Benchmark prices in the Fraser Valley dipped for the seventh straight month in October, with the composite Benchmark price down 0.7 per cent to $971,700.
The Government of Canada has just announced new mortgage reforms that could reshape the housing landscape...
In a major move that aims to make homeownership more accessible to Canadians, the new reforms introduced include:
Increasing the Insured-Mortgage Cap: Effective December 15, 2024, the cap for insured mortgages will rise from $1 million to $1.5 million. This adjustment, the first since 2012, better reflects today’s housing market and will allow more Canadians to qualify for a mortgage with a down payment of less than 20%.
Expanding 30-Year Amortization: First- time homebuyers and buyers of new builds will now be eligible for 30-year mortgage amortizations on insured mortgages, previously capped at 25-years, starting December 15, 2024. This extension aims to reduce monthly mortgage costs and incentivize new housing construction to tackle the ongoing housing shortage.
WANT TO GO TO THE HOME SHOW?
We will have tickets again for the Fall Home Show happening Oct. 25th-26th at the Vancouver convention center. Samantha from Kleen Design and I will be there Saturday Oct. 26th at noon to meet up and answer any interior design questions you may have. Tickets are limited, so reach out if you would like to attend.
Top 5 Reasons Your House Won’t Sell
Selling your home can be a daunting task that can leave you feeling incredibly overwhelmed. We don’t want you to feel this way, which is why we have created this for you. We sincerely hope that you find this information valuable and see success from it.
Sluggish sales and rising inventories see Fraser Valley moving toward a buyer’s market.
SURREY, BC — With active inventories hitting levels not seen in 10 years and sales 30 per cent below the 10- year average, Fraser Valley real estate is building towards a buyer’s market if sales continue to lag.
The Fraser Valley Real Estate Board recorded 982 sales in September, down by eight per cent over August and by more than 10 per cent over September 2023. Again, seasonally adjusted sales were the second slowest in a decade in the Fraser Valley.
New listings rose in September, up 21 per cent to 3,352, an increase of 17 per cent year-over-year. Overall inventory increased five per cent from August to September to 9,045, up 39 per cent over last year. The combination of declining sales and rising inventories has helped to create balanced, and in some cases, buyers’, market conditions in the Fraser Valley.
Across the Fraser Valley in September, the average number of days to sell a single-family detached home was 35, while for a condo it was 37. Townhomes took, on average, 30 days to sell.
Benchmark prices in the Fraser Valley dipped again in September, with the composite Benchmark price down 1.4 per cent to $978,800.
If you have any questions feel free to reach out. I am here to help:
