Fraser Valley to experience buyers market in 2020, prices to increase 2%.
The Fraser Valley housing market is currently witnessing a buyers market due to the substantially higher inventory compared to the previous year and more buyers qualifying for the stress test as they become more adjusted to it. The RE/MAX average sale price expectation for Fraser Valley is +2% due to an expected course correction in the market.
The region’s population growth is expected to have the biggest impact on the market, especially due to more Vancouverites moving to the region as they are being priced out of the market. The relative affordability of the area compared to Vancouver keeps it a hot real estate market.
Watch out for the Surrey City Center neighbourhood, whose development is expected to drive more buyers to the area. Development in downtown Surrey, particularly high-rise condos, has not only attracted more buyers but also more companies and educational institutions to the area.
First-time and foreign buyers are expected to drive demand in 2020, especially as millennials amass more spending power.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
“The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The situation created by the introduction of the mortgage stress test this year, as well as continually increasing interest rates, means more Canadians will be priced out of the market.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.