February 2022 – Fraser Valley Real Estate Market Snapshot

A Leveling Market, Rising Interest Rates and the rise of Pre-Sale Opportunities

While reviewing the February MLS statistics, our market is clearly beginning to level off and become more balanced. With inventory up in all sectors in comparison to last month. When we are comparing inventory by sector to February 2021 both townhomes and single-family inventory have increased by 21 percent and 14 percent respectively. Condominium inventory is also balancing but at a slower pace with a decrease in inventory of 35 percent when compared to February 2021, despite an increase of 82% compared to just last month.

In addition to looking at the available inventory or supply, we tend to look at the number of sales each sector has increased in comparison to the number of sales in the previous month, January. However when compared to the same period in the previous year, February 2021. All sectors have decreased with townhome sales down by 43 percent, single-family sales down by 37 percent and condominium sales down by 22 percent. This in addition to the increased inventory in all sectors, would be a clear sign of the market beginning to correct itself or become more balanced, however, this has not proven to be enough to diminish pricing. They may still rise, but at a slower pace than seen over the last 2 years, or the past 6 months for that matter.

We continue to watch for new announcements on the ‘cooling-off period’ announced by our provincial government late last year.  Though there have not been any new announcements we can confirm that the British Columbia Financial Authority (BCFSA) is currently collecting sales data from a number of brokerages across the province to analyze in regard to evolving its new policy.  We hope to hear more news on this by the end of March or early April.

On Wednesday, March 2, 2022, the Bank of Canada (BOC) raised its benchmark interest rate to 0.5%, an increase of 0.25 percentage points and a move that’s expected to be the first of many small rate hikes throughout 2022. This is the BOC’s response to some of the highest inflation seen in Canada in decades and an attempt to slow it down. It should be noted that this is the first time since 2018 that the BOC has raised interest rates.

A great way to get into the real estate market and avoid further rate increases coming this year is to purchase a pre-sale home that offers a blanket appraisal (available from specific lenders).  This allows one to purchase today at today’s interest rates and see an increase in equity before any mortgage payments become due.  With the blanket appraisal, the bank offering holds the interest rate for the purchaser for 2 to 3 years, depending on product type, or until the new development is completed. This is not like typical pre-approvals from most lenders and mortgage brokers that only last 3 to 6 months, maybe 12 months if you are lucky.

For anyone looking for pre-sale opportunities in Metro Vancouver, Chroma by Forte Living opens the door to new possibilities, exploration, and discovery, while embracing creative and authentic living. Here, the comfort of urban amenities are met with the rich history of Port Moody’s small-town charm. At Chroma, artful living is more than an idea – it’s an expression.