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BCREA 2024 First Quarter Housing Forecast Update: Anticipated Rebound in BC Housing Market Amid Changing Interest Rate Landscape

Vancouver, BC – January 25, 2024. The British Columbia Real Estate Association (BCREA) unveiled its much-anticipated 2024 First Quarter Housing Forecast today, shedding light on the trajectory of the province's real estate landscape.


The forecast paints an optimistic picture, projecting a 7.8% increase in Multiple Listing Service® (MLS®) residential sales in BC, reaching a total of 78,775 units for the year. Looking ahead to 2025, the momentum is expected to persist, with MLS® residential sales forecasted to climb even higher, reaching 86,475 units.

Brendon Ogmundson, Chief Economist, highlighted the shift in market dynamics, stating, "In 2023, the housing market faced headwinds due to elevated mortgage rates, but the recent decline in fixed mortgage rates and potential Bank of Canada rate cuts present an optimistic outlook for 2024." Ogmundson emphasized the delicate equilibrium anticipated for the year, foreseeing a harmonious interplay between rising sales and normalizing inventories, resulting in a relatively stable pricing environment.

The crucial factor in shaping the market's trajectory lies in the Bank of Canada's potential policy adjustments. With progress made in addressing inflation concerns and a softer economic growth and employment landscape, there is a growing expectation that the Bank of Canada will ease its policy rate, giving a further boost to provincial home sales. The intricate relationship between inventory dynamics and pricing will be pivotal, and the forecast assumes a normalization of new listings following a subdued activity period last year.

While acknowledging lingering economic risks, the overall sentiment is one of cautious optimism. The expectation of new listings returning to a more standard pattern post-activity lull suggests a balanced market in 2024, characterized by stability in pricing. The intricate dance between interest rates, inventory, and economic conditions sets the stage for what could be a transformative year in British Columbia's real estate landscape.


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Keywords: BC Real Estate, Housing Market Trends, Property Investment Insights, Vancouver Homes for Sale, Fraser Valley Real Estate, MLS Listings, Home Buying Tips, Market Updates, Local Real Estate News, Mortgage Rate Changes, Property Market Analysis, Housing Forecast, Real Estate Investment Opportunities, BC Homeownership Guide, Expert Realtor Advice, Property Buying Strategies, New Listings Alerts, Home Selling Tips, Market Trends and Analysis, Best Homes in BC, Real Estate Consultation, Property Investment Opportunities, Top Realtor in Vancouver, Fraser Valley Property Search, BC Housing Market Insights, Latest Real Estate News.


Source: BCREA 2024 First Quarter Housing Forecast Update

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Navigating Legislative Changes in BC Real Estate: Your Guide to Bill 44 and Bill 47

On November 30, 2023, significant legislative changes were introduced in British Columbia through Bill 44 and Bill 47. These amendments, known as the Housing Statutes (Residential Development) Amendment Act, 2023 (Bill 44) and the Housing Statutes (Transit-Oriented Areas) Amendment Act, 2023 (Bill 47), received royal assent, bringing forth crucial modifications to the Local Government Act and Vancouver Charter, among other related statutes.

 Key Highlights of Bill 44:

Bill 44 mandates local governments to allow increased density on lots currently zoned for single-family homes or duplexes. It places limitations on the use of public hearings for specific residential projects that align with official community plans and zoning bylaws. Furthermore, municipal governments are now required to update official community plans every five years with public input, reflecting projected housing needs.

 Key Highlights of Bill 47:

Bill 47 focuses on transit-oriented development by compelling municipalities to designate land within 800 meters of rapid transit stations and within 400 meters of major bus exchanges as transit-oriented development areas. Additionally, it permits development in accordance with prescribed minimum density levels within these designated areas. Notably, Bill 47 also removes most parking requirements for developments in these transit-oriented zones.

 Challenges and Opportunities:

The introduced changes are poised to have a profound impact on the housing market and development landscape in British Columbia. Municipalities, developers, builders, and landowners will likely encounter new challenges and opportunities as they navigate this altered legal framework and respond to evolving market conditions.

 Seeking Guidance:

For those seeking clarification on the implications of Bill 44 and Bill 47, it is advisable to connect with legal professionals specializing in real estate matters. Fraser Valley Real Estate Group stands ready to assist with navigating these legislative developments, ensuring stakeholders can optimize their development strategies in light of the new legal landscape.

 As these legislative changes reshape the real estate and development sector in British Columbia, staying informed and seeking professional advice is essential. Fraser Valley Real Estate Group provides expertise in real estate and development matters, helping clients navigate the complexities of the evolving regulatory environment.


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 Keywords: Stay informed on BC real estate legislation changes, Bill 44 and Bill 47 impact, explore Housing Statutes Amendment Act, Local Government Act amendments, Vancouver Charter modifications, transit-oriented development, legal analysis by Fraser Valley Real Estate Group, housing market updates, and expert guidance on real estate development strategies, public hearings, official community plans, and zoning bylaws in British Columbia.



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Anticipating a Revival: BCREA Predicts Strong Rebound for B.C. Real Estate Market in 2024

The British Columbia Real Estate Association (BCREA) expresses optimism for a rebound in the housing market in 2024. The key factors contributing to this optimism include falling rates for fixed mortgages and the potential for interest rate cuts later in the year. The association notes that the housing market faced challenges in 2023 due to elevated mortgage rates but anticipates an eight percent increase in unit sales in 2024.

BCREA's chief economist, Brendon Ogmundson, highlights the recent decline in fixed mortgage rates and potential Bank of Canada rate cuts as positive indicators for the real estate market. The association expects a delicate balance between rising sales and normalizing inventories throughout 2024, resulting in a relatively quiet year for prices.

The impact on prices will depend on how inventory changes over the year, with the BCREA suggesting that the normalization of new listing activity should lead to a more balanced market with relatively stable pricing. In Greater Vancouver, the board forecasts a more than nine percent increase in home sales in 2024 and an additional 12 percent jump in 2025.

In terms of average sale prices, the BCREA predicts a 1.7 percent increase in the province's average home price from just over $970,000 in 2023 to just under $988,000 in 2024. For Greater Vancouver, the average home price is expected to rise one percent from just over $1.28 million in 2023 to $1.29 million in 2024. The forecast takes into account a potential normalization of new listings and a more balanced market, although economic risks are acknowledged.

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Keywords: Find homes for sale, explore property listings, discover real estate deals, and get expert advice on buying, selling, and investing in residential and commercial properties. Your one-stop destination for all things real estate – from condos and luxury homes to market trends and valuable insights.

Source: BC Real Estate Forecast 2024

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No change on interest rate as Bank of Canada sticks to 5%

 In a recent announcement, the Bank of Canada has decided to maintain its key overnight interest rate at five percent, marking the fourth consecutive occasion where the benchmark remains unchanged. This decision, widely anticipated by economists, follows the central bank's last interest rate hike in July 2023. At a press conference, Tiff Macklem, the governor of the Bank of Canada, emphasized a shift in discussions from determining the height of the policy-setting interest rate to evaluating the duration of the current higher interest rate, indicating a potential change in the central bank's approach.

Despite considerations about the length of maintaining a "current restrictive stance," the Bank of Canada remains cautious about lowering interest rates due to persistent concerns about inflation. Governor Macklem acknowledged that inflation has moderated in recent months, partly influenced by the bank's interest rate increases, but emphasized that "inflation is still too high." He deemed it "premature" to discuss interest rate cuts, indicating a continued commitment to monitor inflationary pressures closely.

Macklem suggested that future deliberations would likely focus on how long the policy rate would be held at five percent rather than contemplating additional rate hikes. The central bank's forecasts anticipate inflation to reach its target of around two percent by 2025, even as some measures suggest a slowdown in economic growth towards the end of the previous year.

Economists from both CIBC and the Bank of Montreal responded to the announcement by predicting a potential interest rate cut in June 2024. They noted that rate hikes over the past two years have achieved their intended impact. Mortgage rates, influenced by the central bank's decisions, are a crucial factor in this context. Many Canadians who secured mortgages at historically low rates may face higher costs upon renewal or refinancing, potentially impacting their spending capacity and contributing to an economic slowdown.

Jeremy Kronick, director of the Centre on Financial and Monetary Policy at the C.D. Howe Institute, emphasized the need for the Bank of Canada to tread carefully, considering the potential impact on Canadians facing increased mortgage costs. While predicting a "neutral" interest rate around three percent, Kronick highlighted uncertainties, such as geopolitical tensions affecting international shipping costs, that could influence the central bank's ability to achieve this rate. In conclusion, Canadians are advised not to expect rock-bottom interest rates in the coming months, with predictions suggesting rates will remain higher than pre-pandemic levels.

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 Source: CBC News

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Mastering Your First Home Sale: A Comprehensive Guide for First-Time Sellers

Embarking on the journey of selling a home for the first time can be a significant undertaking, filled with both excitement and challenges. However, with proper preparation and guidance, the process can unfold seamlessly. Here's a comprehensive step-by-step guide tailored to assist first-time sellers in navigating each phase of the selling process.

Determine Your Motivation: The journey begins with a crucial self-reflection. Understanding why you want to sell and establishing clear goals for the sale forms the bedrock of your selling strategy. This initial step sets the tone for a purposeful and successful selling experience.

Research the Market: Knowledge of your local real estate market is paramount. Delve into the intricacies of local conditions and trends. Analyze recent sales of comparable properties in your area to derive a realistic and competitive asking price for your home. This foundational research ensures your property is strategically positioned in the market.

Hire a Real Estate Agent: Engage the expertise of a reputable real estate agent with a proven track record in your local market. A skilled agent becomes your trusted ally throughout the process. They assist in setting the right price, crafting effective marketing strategies, and negotiating with potential buyers. Their experience is invaluable in navigating the complexities of real estate transactions.

Prepare Your Home: Enhancing the appeal of your home is pivotal to attracting potential buyers. Commence by addressing necessary repairs and improvements. Create an inviting atmosphere by cleaning, decluttering, and staging your home. A well-presented property not only captures attention but also contributes to a positive first impression.

Set the Right Price: Collaborate closely with your real estate agent to determine an appropriate listing price. This involves a thorough assessment of market conditions and an evaluation of your home's current state. A well-calculated pricing strategy ensures your property stands out in a competitive market.

Market Your Home: Crafting a compelling marketing strategy is the next crucial step. Work closely with your agent to leverage various channels, including online listings, open houses, and traditional marketing methods. Highlight the unique features and advantages of your home in marketing materials to capture the interest of potential buyers.

Negotiate Offers: As offers start rolling in, review them meticulously with your real estate agent. Be prepared to negotiate on various aspects, including price, closing costs, and other terms. A collaborative and strategic negotiation process positions you for a favorable outcome.

Accept an Offer: Once negotiations are successfully navigated, collaborate with your agent to draft a comprehensive purchase agreement. Pay close attention to any contingencies, such as a home inspection or financing, ensuring a smooth transition to the next phases of the selling process.

Home Inspection and Appraisal: Cooperate actively with the buyer's home inspection and address any arising issues promptly. Additionally, accommodate the appraisal process, as the buyer's lender may require it to verify that the home's value aligns with the agreed-upon price.

Closing Process: Approaching the closing phase, maintain close collaboration with your real estate agent and a qualified real estate attorney. Together, navigate the intricacies of the closing process, signing necessary documents and facilitating the seamless transfer of ownership to the buyer.

Move Out: As the closing date approaches, plan your move meticulously. Vacate the property by the agreed-upon date, ensuring a smooth transition for both you and the new homeowner.

Close the Deal: The final steps involve the culmination of all efforts. Once all paperwork is signed, and the funds have been successfully transferred, the sale is complete. Hand over the keys and any necessary information to the new owner, marking the end of a successful and rewarding first-time home selling journey.

In embracing this step-by-step guide, first-time sellers can navigate the complexities of the real estate market with confidence, turning their initial undertaking into a smooth and gratifying process.

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Bank of Canada readies for its 1st rate decision of 2024. Here’s what to know!

The Bank of Canada is gearing up for its first interest rate decision of the year, with economists emphasizing the challenges in the "last mile" of the inflation fight as a crucial hurdle before considering rate cuts. Despite a significant drop in inflation from the summer highs of 8.1% in 2022, the rate has plateaued at around three to four percent over the past six months.

BMO chief economist Doug Porter highlights the stubbornness in core inflation, particularly in services and shelter costs, as a concern for the central bank. While the initial inflation was driven by supply chain bottlenecks, which have eased, current inflationary pressures are linked to increased demand for services and rising housing costs.

James Orlando of TD Bank notes that tackling shelter inflation, particularly in the rental market, is complex and lacks a quick fix. The slow pace of addressing housing deficits makes the last mile of inflation harder to navigate.

The Bank of Canada is expected to maintain its benchmark interest rate, with the focus shifting to when it should transition from tightening to stimulating the economy. Economists suggest that consumer spending trends, which have been flat and are expected to weaken further with upcoming mortgage renewals in 2024, will play a pivotal role in this decision.

RBC economists believe that inflation and sustained wage growth make early interest rate cuts unlikely, and the Bank of Canada is expected to resist calls for a shift to rate cuts in the near term. Orlando anticipates interest rate cuts to begin in mid-2024, but there are uncertainties, such as risks from global supply chain disruptions.

Geopolitical tensions and supply chain disruptions pose risks to the inflation outlook. While some forecasters expect easing to start in the spring, Orlando emphasizes that unforeseen developments in global supply chains could alter this timeline.

Ultimately, the decision on interest rates will depend on how the Canadian economy performs. If the economy accelerates, the timeline for rate cuts may be pushed back, but a sharper slowdown could expedite the process. Orlando underscores the importance of monitoring the labor market, as any signs of job losses could significantly impact consumer confidence and, consequently, the overall economy.

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Source: Global News
 
 
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Empowering Local Governments to Accelerate Housing Delivery

In a concerted effort to address the pressing need for more housing, the Province is championing local governments by providing financial assistance to expedite the construction of homes in compliance with new provincial legislative standards.

Minister of Housing, Ravi Kahlon, emphasized the urgency, stating, "There is an immediate requirement for additional housing, and we are collaborating with local governments to streamline the construction process." With a series of new housing initiatives aimed at addressing community needs, the focus is on aiding local governments in enhancing processes for the swift construction of housing that is critically needed by residents.

Recent legislation, including measures for transit-oriented development and small-scale, multi-unit housing, underscores the commitment to creating more housing options. Beginning January 18, 2024, the Province will allocate $51 million in grant-based funding from Budget 2023 to all 188 local governments in British Columbia, encompassing municipalities, regional districts, and the Islands Trust. This financial support is designed to assist local governments in meeting the newly mandated requirements.

Recognizing the immediate challenges faced by local governments, the Province is taking a proactive approach by providing upfront funding to facilitate essential work. This funding can be utilized by local governments to update housing needs reports, zoning bylaws, development cost charge, and amenity cost charge bylaws, along with community plans. These funds can be allocated for hiring consultants and staff, conducting research, and engaging with the community, thereby expediting the transition to enhance the development approvals process. The upfront nature of this funding is particularly advantageous for smaller local governments with limited resources for making necessary changes.

This financial support is part of the groundbreaking $19-billion housing investment by the government. Since 2017, the Province has seen significant progress, with over 77,000 homes either delivered or in progress.

Additional Information:

In conjunction with the $51 million, the Province has allocated an extra $10 million for a second intake of the Local Government Development Approvals Program (LGDAP), a grant fund managed by the Union of British Columbia Municipalities. Launched in 2021, LGDAP supports local government-led projects that implement best practices and innovative approaches to enhance development approval processes. Applications for this funding opened on January 1, 2024, with successful recipients expected to be announced in spring 2024.


#HousingCrisis #RealEstateBC #AffordableHousing #BCProperty #UrbanDevelopment #FraserValleyHomes #HousingSupport #Budget2023 #HousingInitiatives #ZoningBylaws #BCRealEstateNews #RapidConstruction #DevelopmentApprovals #HomeownershipBC #CommunityEngagement #HousingInnovation #LocalGovernmentSupport #BCMunicipalities #BCInvestmentInHousing #TransitOrientedDevelopment #IslandsTrust #SmallScaleHousing #LegislativeAction #RaviKahlon #HousingLegislation #HomeConstruction #CommunityDevelopment #BCInvestment #BCPropertyMarket #FraserValleyHomes #VancouverRealtor #BCRealEstate #YVRHomes #FraserValleyProperties #VancouverRealEstate #HomeBuyersVan #DreamHomeBC #VanCityHomes #FraserValleyLiving #VancouverProperties #BCRealty #FraserValleyRealtor #YVRRealEstate #VancouverHomeSearch #FraserValleyRealEstate #WestCoastHomes #MetroVancouverRealty #FraserValleyListings #LuxuryHomesBC #VancouverHouseHunt #RealEstateBC #FraserValleyLiving #VanCityRealEstate #ModernHomesBC

source: https://news.gov.bc.ca/releases/2024HOUS0006-000051

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Your Ultimate Guide: 5 Tips for First-Time Home Buyers in Fraser Valley

Welcome to the exciting journey of becoming a homeowner in the beautiful Fraser Valley! As a first-time homebuyer, the process can be both thrilling and overwhelming. To help you navigate this significant milestone, we've compiled five essential tips that will make your home-buying experience in Fraser Valley smooth and successful. Whether you're a local or a newcomer, these tips will guide you through the process. Let's dive in!

Tip 1: Define Your Budget and Stick to It One of the first steps in your home-buying journey is determining your budget. Work with a trusted mortgage advisor to understand your financial capacity and set a realistic budget for your dream home. Remember to consider additional costs such as property taxes, maintenance, and utilities. Sticking to your budget will ensure a stress-free and financially sound home purchase.

Tip 2: Research Neighborhoods Fraser Valley offers a diverse range of neighborhoods, each with its unique charm and amenities. Research different areas to find the one that aligns with your lifestyle, preferences, and future plans. Consider factors such as schools, public transportation, proximity to work, and local amenities. This research will help you make an informed decision and find a community that feels like home.

Tip 3: Work with a Local Realtor Navigating the real estate market can be challenging, especially for first-time buyers. Enlist the services of a local realtor who understands the Fraser Valley market inside and out. A knowledgeable realtor can guide you through the entire process, negotiate on your behalf, and provide valuable insights into the local market trends.

Tip 4: Attend Open Houses and Inspections Get hands-on experience by attending open houses in the Fraser Valley. This will give you a better understanding of the local housing market and help you refine your preferences. When you find a property you're interested in, don't skip the inspection process. A thorough inspection ensures that there are no hidden issues and gives you peace of mind before making the final decision.

Tip 5: Stay Informed about Government Programs As a first-time homebuyer, you may be eligible for various government programs and incentives designed to make homeownership more accessible. Stay informed about these programs, which may include down payment assistance, tax credits, or rebates. Your realtor can provide guidance on the available options to maximize your benefits.

Embarking on the journey of buying your first home in Fraser Valley is an exciting adventure. By following these tips and working with a local realtor, you'll be well-equipped to navigate the real estate market and find the perfect home for you. Remember, each step brings you closer to turning your homeownership dreams into reality. Happy house hunting!


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Keywords: 

Fraser Valley Real Estate, Vancouver Homes for Sale, BC Property Listings, Home Buying in Fraser Valley, Vancouver Real Estate Market, Fraser Valley Realtor Services, Luxury Homes in BC, Property Investment Vancouver, Best Neighborhoods in Fraser Valley, Affordable Homes in Vancouver, Real Estate Agents BC, Fraser Valley Condos, Vancouver Townhouses, Housing Trends in BC, Mortgage Rates Vancouver, New Developments in Fraser Valley, Commercial Real Estate Vancouver, Land for Sale BC, Home Valuation Fraser Valley, Real Estate News Vancouver, Top Vancouver Realtors, Fraser Valley Property Market, Investment Opportunities BC, First-Time Homebuyer Tips, Open Houses in Vancouver.

 
 
 
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