FEBRUARY Newsletter
The latest news in the housing market from the Fraser Valley Real Estate Board — shows the first signs of a housing market correction reflected in January 2022's statistics. However we haven't seen a slow down in pricing or signs of a correction in the lower mainland. We continue to see increasing prices, high-stakes bidding wars, subject free offers, and obscure buyer to listing ratios. We take a closer look at the reason why listings have been so scarce; and get to the major point: what you should do if you plan to stay or sell.
Current mortgage rates remain steady for both fixed and variable rates, with the only increase in 5-year fixed rates from 2.64% to 2.69% this week, while the Bank of Canada rate remains at 0.25% until the next rate announcement on March 2nd, 2022.
WE NEED HOMES!
We have buyers looking for:- Acreage in South Langley
- Build sites for condos, townhomes or single family detached
- Single family homes in Langley and South Surrey
If you or anyone you know is considering a move call us today. Your home may be worth more than you think!
We are always planning contests and announcing community events/news, so be sure to subscribe & follow to keep connected with us on instagram:
@robvisnjak, @pbouwmanrealestate & @lanarosemackay.
If you're looking to see what your home might be worth you can check that out here: |
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CREATING WEALTH THROUGH REAL ESTATE SINCE 2007 |
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| WHY ARE THERE NO LISTINGS? |
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The biggest reason is that owners are sitting on crazy profits. In Surrey $350,000 a year – 2 years in a row, and with that kind of performance, why move?- There is also nothing much available when they go out to look.
- Some also worry that they leave further profit increases on the table.
- People are holding on to the real estate they buy.
- It will continue for a while.
- Inward migration accelerating.
- Increased students coming back.
Since there are few properties for sale … people are back to multiple offers. This picture will change with a possible “crash’ in stocks, much higher interest rates and faster increases and more often than expected.
Major Point: If you are staying, fix your rate. If you want to move, get some quotes now and watch the interest rate market!
Source: https://ozbuzz.ca/ |
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| FRASER VALLEY MONTHLY STATISTICS |
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"On the heels of the busiest year in history for Fraser Valley real estate, January activity saw the beginnings of a market rebalancing. Overall property sales — still the third highest ever for January — cooled compared to December while the volume of new listings improved significantly.
The Fraser Valley Real Estate Board processed a total of 1,310 sales of all property types on its Multiple Listing Service® (MLS®) in January 2022, a decrease of 23.7 per cent compared to January 2021, and 27.5 per cent lower compared to December 2021." |
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"In January, REALTORS® saw the return of home sellers. Yes, sales in our region remain elevated, but a positive, early trend for 2022 is we experienced a significant increase in requests from sellers to list.
It's early days yet, but if this trend continues into spring, we could see an easing of the supply-demand dynamic in our region. We have a long way to go to replenish our housing stock and bring much-needed balance to the market, but this is a step in the right direction."
- Larry Anderson, FVRB President |
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MLS® HPI Benchmark Price Activity
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MLS® HPI Benchmark Price Activity for January 2022:
Single Family Detached: At $1,569,300, the Benchmark price for an FVREB single-family detached home increased 4.6 per cent compared to December 2021 and increased 41.8 per cent compared to January 2021.
Townhomes: At $796,500, the Benchmark price for an FVREB townhome increased 4.0 per cent compared to December 2021 and increased 37.2 per cent compared to January 2021.
Apartments: At $574,300, the Benchmark price for an FVREB apartment/condo increased 4.6 per cent compared to December 2021 and increased 30.6 per cent compared to January 2021.
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Weekly Mortgage Rate Update
*2 year fixed @ 2.34%
*3 year fixed @ 2.54%
*4 year fixed @ 2.64%
*5 year fixed @ 2.69%
*Variable Rate Mortgage 1.20% @ prime - 1.25% prime rate is 2.45%
*OAC, rates high ratio purchases, subject to certain conditions, rates may change without notice, call for a quote
Call for a quote: Lynn McLellan & Jared Dreyer
Dreyer Group Mortgages Inc. |
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| RESIDENTIAL MARKET COMMENTARY |
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 | Hiking Rates Without an Increase
The Bank of Canada has, once again, held its trendsetting interest rate 0.25%. But it has stepped off the sidelines.
Expectations of a rate hike were high heading into the January 26th announcement. Calls for an increase have been loud as inflation has jumped to generationally high levels. Business and consumers are pushing for action to bring it back under control.
The Bank, however, appears to have opted for a compromise. It is holding the rate at its record low while the rhetoric has been given a sharp increase. Bank of Canada Governor Tiff Macklem has made his most direct statement, yet, on the matter.
“Canadians can be assured that we will use our monetary policy tools to control inflation,” Macklem said during the January announcement. “Canadians should expect a rising path for interest rates.”
Well known bank economist Benjamin Tal calls it a “PR story.”
“There are two opposing forces: one is that you want to maintain the credibility of the Bank of Canada,” Tal said in an interview with Mortgage Broker News. “At the same time, you don’t want to be seen as insensitive to the suffering of people during the Omicron wave. So, what do you do? You basically raise rates without raising rates.”
Popular American financial expert John Mauldin has called this tactic, “talk tough and drag your feet.”
COVID-19 remains the key variable in the BoC’s planning, but it now appears increasingly likely the Bank will pick up its feet and step off the sidelines with a rate hike in its next announcement on March 2nd.
Source: First National Financial LP |
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