January 2024 Monthly Market Update by Amanda Milford PREC

It's mighty cold outside today! I hope you and your pets keep warm! I filmed this video at my listing in Breakaways Bay. It's 14 feet wide (not the 14 inches which I mentioned in the video.. lol), a 2 bed/1 bath manufactured home with a private space around the patio.  To summarize the market to help you understand where we are currently. When I look at the stats year on year, the average sale price in South Surrey/White Rock increased 15.9%, despite the dip in price we had at the end of last year. Sales increased by 16.7%, although they softened towards the end of the year. However, we have 8 months of inventory and finished off the year in a balanced market. Seriously, that's a good growth for the year.  Below is my formal write-up, but remember that the market will revert. Activity will increase, and prices will continue to rise as the interest rates come down. It's a good time now to list and buy before the competition returns. Make sure to read to the end of the email. There is a link to enter a competition to win a gift card for Valentine's Dinner!  

Employment Data Highlights:

In economic news, it's worth looking at the employment data for both the US and Canada. Locally, the unemployment rate held steady at 5.8%, despite weaker-than-expected new job creation offset by robust population growth. The persistent unemployment rate is linked to a decline in participation, a trend expected to reverse as job seekers shake off their holiday hangover.The evidence of ongoing wage pressure is of particular significance, evidenced by a 5.7% year-over-year surge in hourly earnings, posing a challenge for the Bank of Canada in shaping future monetary policy. 

Outlook for Interest Rates:

The anticipation is that the Bank of Canada will lower interest rates in 2024, extending into 2025, to ease the impact of mortgage renewals. The recent dip in fixed mortgage rates, tied to softened bond yields, could entice buyers, particularly investors eyeing the spring market for potential price opportunities.However, a significant rebound in buyer activity may hinge on meaningful improvements in borrowing costs, specifically through multiple interest rate cuts. This leads to anticipating a market "lift-up" in the second half of the year, accompanied by a return in competition. 

Navigating the Real Estate Landscape:

Signs of an uptick in the market are visible, with several properties receiving multiple offers in market pockets. Timing the market can be challenging, especially as sellers want to maintain their prices. Moving in a buyer's market is comparatively more straightforward than in a seller's market. As rates decline, prices are expected to rise, bringing back competition.If you plan to buy another home after selling your current one, it's worth considering listing sooner rather than later this year. The market dynamics will change as we move into Spring, and being proactive may prove advantageous.

 

Valentine's Day Dinner Contest:

On a lighter note, to add a touch of excitement to your real estate journey, I'm running a competition for a Valentine's Day dinner for two.Click on the link to fill out a Google form to enter the draw before January 25, which will take you to a Google form to register for the draw. It promises to be a fun experience for you and your loved one!https://forms.gle/Ay1V3fBpFyriFeRs8
 If you have any questions or need support on your real estate journey, feel free to reach out. I love helping and am here for you!  Kind Regards,Amanda