New listings at 10-year high in 2024, but affordability still the elephant in the room in Fraser Valley

January 6, 2025

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.

“2024 marked another subdued year for Fraser Valley home sales on the heels of a ten-year low in 2023,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “Slight declines in home prices across some areas of the region provided negligible relief for buyers looking to get into the market. At the same time, the modest price adjustments did not discourage sellers from listing.”

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.

December 2024 

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.

“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.”

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.

MLS® HPI Benchmark Price Activity

Detached Homes: 

At $1,480,400, the Benchmark price for an FVREB single-family detached home decreased 0.1 per cent compared to November 2024 and increased 0.9 per cent compared to December 2023.

Townhomes:  

At $827,900, the Benchmark price for an FVREB townhome decreased 0.9 per cent compared to November 2024 and increased 0.3 per cent compared to December 2023.

Apartments:   

At $533,900, the Benchmark price for an FVREB apartment/condo decreased 0.4 per cent compared to November 2024 and decreased 0.2 per cent compared to December 2023.

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Refinancing: 101

Refinancing your mortgage is when you replace your existing mortgage agreement with a different one. While the most common reason to refinance your mortgage is to take advantage of significantly lower interest rates to lower your monthly payment, it’s not the only reason for refinance. 

Some people refinance to access the equity in their home to provide flexibility to cover expenses, such as major home improvements, or to pay off higher-interest debt. It’s easier to qualify for the refinance if you have at least 20 percent equity in your home. 

If refinancing is something you are interested in, start with a mortgage expert to see if it makes financial sense. Be sure you plan on owning the property long enough to break even on the closing costs of the refinance - that is the time it takes for the closing costs to be covered by the monthly savings.   

If you have a credit score of  750 or more and a debt-to-income ratio of 36 percent or less, you will be more likely to get the lowest rates.  

Making your money work for you is  what refinancing is all about. It’s worth exploring to see if it makes sense for you, whether you want to lower your payments, pay off your mortgage sooner, or help fund a large expense like a home improvement project  or retirement.

If refinancing is on your mind and you are looking for advice to help with your decision, remember we're always happy to help. Call or email today   604-309-5453  or email: bonetti@telus.net





 
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5 Things that Lower your Home’s Perceived Value

Many seemingly small things can be a big turn-off to prospective buyers. So, it’s wise to identify and fix these issues when you list. Here are a few examples. 

1. Outdated or Neglected Exterior:

Chipping paint, a tired-looking façade, or uninspired landscaping will impact a buyer's all-important first impression. The solution? Fresh paint, power washing, landscape trimming, or even adding new plants.


2. Old or Damaged Appliances: 

Outdated or broken appliances will get noticed by prospective buyers. The solution? Repair and thoroughly clean them. It might also make sense to invest in new appliances. If you go that route, buy energy-efficient models that look great and they will become a selling point. 

3. Unpleasant Odours: 

We become so acclimated to smells in our home that we often no longer notice them. But buyers will! Odours from pets, smoking, perfumes, and exotic cooking are especially detracting to buyers. The solution? Reduce odours by avoiding scent-producing activities (such as cooking) prior to viewing appointments.  

4. Overly Personalized Interior: 

Buyers want to envision themselves living in the home, not you. The solution: Eliminate as many personal items as possible. Make the style and décor attractive but neutral.

5. Old or Poorly Maintained HVAC Equipment: 

Buyers often ask for the age of furnaces, water heaters, and air conditioning units. They’re concerned about potential maintenance issues. The solution? Get older equipment inspected by a professional. Then have that documentation available to buyers. 

As you can see, investing in a few repairs and upgrades can make a big difference in how quickly your home sells – and for how much.













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 & 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


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“What the new year brings to you will depend a great deal on what you bring to the new year.” 

– Vern McLellan





   






  




REAL ESTATE NEWS
                    
 
                      December 11, 2024

The Bank of Canada lowers key interest to 3.25%

 

The Bank of Canada lowered the interest rate again by 50 basis points to 3.25%, its fifth consecutive rate cut this year, but signaled future cuts will ease at a slower pace.

"We anticipate a more gradual approach to monetary policy if the economy evolves broadly as expected," Bank of Canada governor Tiff Mackem told reporters Wednesday, confirming the Bank of Canada is considering further reductions in the policy rate." But added that economic outlook is "clouded" due to the looming threat of tariffs by the US, and the effect of the Government's 2-month GST holiday on certain items.

RBC and CIBC economists are predicting the Bank of Canada will continue to lower the policy rate gradually in 2025, with CIBC coming in at a low of 2.25%, and RBC at 2%.
 
The Bank of Canada's interest rate cut in October, which reduced borrowing costs, had a noticeable effect on the housing market, particularly in terms of increased sales activity. In November 2024, there was a rise in home sales, notably in regions such as Langley and major cities like Calgary and Vancouver. However, despite this uptick in transactions, home prices did not experience a significant surge. While lower rates helped reduce mortgage costs and sparked more buyer interest, it did not immediately drive up property values, suggesting a more cautious market recovery. 

Senior deputy governor Carolyn Rogers told reporters that the central banks expects "some more pickup" in 2025 amid the sharp drops in the policy rate and mortgage changes coming from the federal government aimed at making it easier for some buyers to break into the housing market.


The Bank of Canada's first interest rate decision of the new year comes on
January 29, 2025


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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












                      

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.






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