February 2024 – Fraser Valley Real Estate Market Snapshot

Unraveling the Real Estate Landscape of Fraser Valley: Recent Shifts and Future Trends

February Market Activity

In February, the Fraser Valley resale market saw a rise in sales activity, values, and inventory compared to both the previous month and the same month last year. Some buyers are cautiously re-entering the market due to promising inflation data and expectations for interest rate cuts. Overall, market activity remains positive despite recent government announcements.

Government Policy Impacts

Recent changes, such as the extended ban on foreign buyers and new short-term rental restrictions, have affected the housing market across the province. The foreign buyer’s ban now extends until January 1, 2027. Additionally, the provincial government in British Columbia has introduced measures to address the lack of affordable rental supply.

Short-Term Rental Ban

The provincial government will ban short-term rentals in cities with populations over 10,000 or those near such cities. This ban takes effect on May 1, 2024. Families with vacation homes in BC’s tourism areas may no longer subsidize costs by renting them out short-term when not in use. While the Fraser and Lower Mainland might see little impact, smaller towns relying on tourism in the interior and on Vancouver Island could suffer.

Exceptions to the Ban

Short-term rentals are still allowed if they are part of your principal residence, such as a basement suite or a carriage home over your garage. Homes that are not a principal residence cannot be used for short-term rentals in the affected cities. This ban will apply to most communities across the province.

New Anti-Flipping Tax

The province’s latest budget introduces an Anti-Flipping Tax, effective January 1, 2025. Specific details, including the definition of ‘acquire the real estate’ for pre-sale contract assignments, are still pending. This new tax adds to existing taxes. It will apply to homes sold within two years of acquisition and will also cover development pre-sale contracts.

Fraser Valley Market Steady

Despite these announcements, the Fraser Valley market remains steady. Buyers and sellers are anticipating interest rate cuts later this year.