Is The Inventory Crisis Going To Stop? A Real Estate Update
We have seen how prices are down lately, from sales to new listings.
Buyers are on the fence about the pre-approved deals being denied, while the demand is down and Canada faces an inventory crisis with the Bank of Canada having for the second time in a row a lending rate of 5%.
But what does it mean for buyers in cities like South Surrey, White Rock, Surrey & Langley?
With prices falling for the fourth month in a row, buyers got the advantage of not having a lot of competition while having good options on the market.
In October, we saw these prices going down 12% since September, but if we compare it to the same period in a year like 2021, this range is even bigger, with sales down 50%.
Around 2,535 new listings hit the market this last October, a number that went down 28% since its peak in May. While this happens, and the inventory rates continue to go down, we see that the market right now is a balanced one, and sales continue to be active on over 15% listings ratio.
To look a bit more at the details, detached homes are the most affected by it, with a weakening of over 12%. If you go around out there, you’ll see those properties sitting a little longer, with prices being reduced.
Regarding Benchmark prices, all three categories came down a little bit: 1.5% for detached homes, 0.4% for townhomes, and 0.1% for apartments.
This may seem worrying, but if we compare with last October, for example, these prices actually are slightly up, between 3.7 to about 4.8%, which proves how good of a moment it is if you’re looking to buy a new house, especially for the next 2-3 months of winter when sellings are already slower.
But the bigger issue in this situation is getting pre-approval to buy a house.
My advice for that is: get the approved for whatever amount you’re looking at; with the current interstate rates, if you get this pre-approval, take the chances on some of the good stuff out there.
If you’re a seller, my advice is that you have to work with someone who knows the area, so make sure to work with a local realtor who is updated with the market that you’re inserted in, someone who knows what is going on in terms of pricing, activity, how busy are other properties listed in the area versus yours, etc.
Price is really the key right now, you can’t expect to maximize the amount of money you’re going to sell for, the option is to make sure your price is sharp so when it comes on the market, it comes as a good deal, not too low but not too high also, to attract those buyers you need.
If you’re only curious and want to learn more about the Surrey area, make sure to download my neighborhood guide by clicking here, or subscribe to our newsletter to get everything about the lifestyle & home market in Fraser Valley.
I know it may seem complicated but mostly scary to face that real estate market right now, but if you want to take a chance on either buying or selling a house, I can assist you. All you have to do is click on this link and fill out the form, or contact me and my team at
Email: info@moeteam.ca
Text/Call: (604) 533-3491
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