July Market Update 2023

The Fraser Valley real estate market is reporting a strong showing in June with small increases in pricing and sales activity above the 10-year-average. But the most recent numbers don't tell the entire story of buyers and sellers struggling in the Lower Mainland housing environment.

On one side the forces of ever increasing interest rates due to the hike-parade of the Bank of Canada and on the other side the need to put a roof over one's family head. The struggle is real and we believe it will become even harsher in the coming months.

The higher interest rates will eventually put pressure on housing prices again, which holds many sellers back from listing their homes. This leads to would be buyers not finding suitable accommodation, so they stay in their rentals a bit longer, some much longer. On the flip side of the housing pole is the tenant, who can't find anything to rent as vacancy rates remain at historical lows, due to the fact that buyers are forced to rent longer. Therefore competition drives us rental prices even further.

And so continues the never ending cycle of inflation, which leads back to the Bank of Canada making many things worse again and the cycle starts again. How this looks from a real estate market perspective you can see on the data sheet below:

Now if you would like to hear our thoughts on anything real estate then reach out to the IMPACT Real Estate Group and our team of experts will gladly guide you through this crazy world called real estate.