White Rock & South Surrey Real Estate Market update September 2023

It's starting to feel a little like fall! I filmed this latest market update on my listing 402 15015 Victoria Ave. This is a stunning location close to all the action in White Rock. The complex is amazing, with awesome views.  Over the past month, many prospective buyers have adopted a "watchful waiting" approach, delaying their decisions in anticipation of potential future changes in interest rates. We are optimistic that the coming months will bring an influx of new property listings, leading to increased market activity as we head into the fall season. On average, properties have spent four to six weeks on the market before being sold, with townhomes and apartments selling faster, typically within 16 and 20 days, respectively, compared to detached homes, which take around 25 days to sell. 

Interest Rate Decision

In a recent decision, the Bank of Canada opted to maintain its benchmark (overnight) interest rate at 5.00%, marking a temporary pause in a policy that had witnessed ten consecutive rate increases since March 2022. While the Bank's previous meeting in July had seen a 0.25% rate hike due to signs of sustained excess demand and elevated core inflation, today's announcement from the Bank conveyed a similar tone but with a different outcome. Key points from the Bank's decision include:

• Canada's economy has entered a phase of weaker growth, a move deemed necessary by the Bank to alleviate upward price pressures.
• Economic growth experienced a significant slowdown in the second quarter of 2023, with output contracting by 0.2% annually. This contraction was attributed to a marked reduction in consumption growth, decreased housing activity, and the impact of wildfires across several regions.
• Slower household credit growth was observed as higher interest rates curbed spending among a broader spectrum of borrowers.
• In the second quarter, final domestic demand grew by 1%, supported by government spending and increased business investment.
• While the labour market's tightness has gradually eased, wage growth has remained relatively stable, hovering around 4% to 5%.
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In its summary of today's decision, the Bank indicated that "with recent evidence of a reduction in excess demand in the economy" and considering the lagged effects of monetary policy, the Governing Council chose to maintain its policy interest rate at 5% and continue the process of normalizing the Bank's balance sheet. However, the Bank emphasized its ongoing concern about the persistence of underlying inflationary pressures and its readiness to raise the policy interest rate further if necessary. 

Current Real Estate Market in South Surrey/White Rock

In the South Surrey/White Rock area, the average sale price for detached homes is currently 0.9% higher than it was at this time last year. Sales and inventory levels remain relatively low, resulting in a balanced market. This presents an opportune moment for prospective buyers as competition remains limited, although this favourable situation may not last indefinitely. Prices remain competitive and in line with the market conditions. Conversely, the townhouse and condo market is experiencing greater robustness and is characterized as a seller's market.
 For the month of September, I am running a campaign to help you know where your home's value is in the market. Please reply to this email if you would like a no-obligation home valuation. I will happily create a nifty video email for you discussing your home, the market around your area, and the growth you have achieved over the past few years.  
If you are contemplating a move and require guidance on navigating this market, please feel free to contact me for a planning session. Together, we can devise a tailored plan to help you achieve your homeownership dreams. Have a super day!