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💸 $24B for Surrey Infrastructure, Schools Expand & Rate Cuts

💸 $24B for Surrey Infrastructure, Schools Expand & Rate Cuts

Learn about local changes in the Fraser Valley area that impact the value of your home and lifestyle!

Scott Moe
September 19, 2024

Happy Thursday!

There’s so much happening in Surrey this month.

BC cities are looking to invest in infrastructure, and Surrey schools are expanding to keep up with rapid population growth.

We’re also taking a look at the rate cuts from the Bank of Canada and what we can expect moving forward.

— Scott

💰 Local Leaders Seek More Funding for Climate Resilience and Housing

Driving the news: Municipal leaders from across British Columbia are gathering in Vancouver this week for the Union of B.C. Municipalities (UBCM) annual convention, where they are united in advocating for increased provincial funding to support infrastructure development.

UBCM president Trish Mandewo highlights the need for an additional $650 million annually to address infrastructure challenges, which are estimated to total $24 billion over the next decade.

Details:

UBCM is requesting provincial support for local infrastructure and a share of property transfer taxes to finance housing projects.

They are also advocating for part of the carbon tax revenue to fund efforts that mitigate extreme weather events like wildfires, floods, and heatwaves.

Premier David Eby is set to address the convention on Thursday, with opposition leaders scheduled to speak on Friday.

Why it matters: Strengthening funding for infrastructure and climate resilience could prevent local governments from raising property taxes, easing the financial burden on residents.

The investments are crucial for building sustainable, "complete communities" that are better prepared to face the increasing frequency of extreme weather events.

The big picture: Municipalities across B.C. are dealing with rising costs from natural disasters and outdated infrastructure. Additional funding and flexible revenue streams will support local governments in meeting demands for emergency planning, risk management, and public safety.

What’s next: Discussions will continue throughout the week, covering key issues such as housing, addiction, and public safety. Premier Eby’s speech on Thursday may provide insight into the province's commitment to supporting municipal needs in the future.

🎥 British Columbia: Have Interest Rates Sparked? (August Market Update)

In this video, I'll review this month's "Moeket" update for August 2024 and answer the question: Have interest rates sparked the real estate market in British Columbia?

🏫 Forsyth Road Elementary to Grow as Surrey's School Population Soars

Driving the news: Surrey’s Forsyth Road Elementary is set for a major expansion, and George Greenaway Elementary will receive a prefabricated module next fall, thanks to new provincial funding.

Details:

Forsyth Road Elementary will add 14 new classrooms, increasing capacity by 340 students and doubling the school's size by 2028.
Greenaway Elementary will install a prefabricated module consisting of 14 classrooms, expected to be ready for the fall semester of 2024.
The expansion at Forsyth was included in the 2023/2024 five-year capital plan, following rising enrollment from 295 students in 2018 to 530 today, with portables currently in use.

Why it matters: Surrey is one of BC’s fastest-growing cities, with schools feeling the strain from increasing enrollment.

This investment will ease pressure on the local education system, allowing more students to attend schools close to home.

The addition of new classrooms at both schools will provide much-needed relief and support for families in the community.

What’s next: Forsyth Road Elementary’s expansion will be completed by 2028, while Greenaway Elementary’s prefabricated module will be operational by the 2024 fall semester.

These projects are expected to significantly improve capacity and learning environments for local students.

🎥 Tour a $1.65M Cloverdale BC Home w/ 6-Beds & 3-Car Garage

Spacious 6-bedroom, 4-bathroom family home in Surrey, spanning 3,600 sqft, listed at $1.65M!

This beautiful two-story home offers ample space for your family. Enjoy the open layout, vaulted ceilings, and cozy fireplaces. The well-appointed kitchen features stainless steel appliances and a pantry.

The main floor boasts a formal dining room, living room, and a family room with a fireplace. Upstairs, you'll find the spacious master suite and five additional bedrooms. The fully finished basement offers a recreation room.

Step outside to the fully fenced backyard. The triple-car garage with RV parking provides ample storage and parking. Located in a desirable Surrey neighborhood, you'll be close to schools, parks, and shopping.

📍 16753 61st Ave, Surrey, BC V3S 1W2

💸 Bank of Canada Signals Bigger Rate Cuts as Economy Slows

Driving the news: The Bank of Canada (BoC) made its third consecutive rate cut, reducing the key interest rate by 25 basis points to 4.25%.

The rate had held at 5% for nearly a year before June, when the central bank began its easing cycle.

Details:

Inflation in Canada has declined to 2.5%, close to the BoC's target of 2%, but economic growth is slowing.
Canada's unemployment rate rose to 6.6% in August, and concerns about a shrinking labor market and low productivity are growing.
Financial markets predict a 93% chance of another 25 basis point cut in October, with the potential for a larger cut if growth remains anemic.

Macklem echoed concerns about the economy’s sluggishness, noting that the BoC would be ready to act aggressively, including a potential 50-basis-point cut.

Analysts believe that declining oil prices, a key factor in Canada’s economy, and rising unemployment could push the central bank to accelerate rate reductions.

Why it matters: The rate cuts are intended to support a weakening economy as inflation moves toward the bank’s 2% target. However, sluggish growth and rising unemployment could impact sectors that rely heavily on consumer spending, such as housing and retail.

In particular, the real estate market is vulnerable to high shelter costs, which continue to drive inflation in that sector.

For Canadian consumers and businesses, lower interest rates could help reduce borrowing costs, offering a measure of relief, especially for mortgage holders.

The big picture: Canada is leading G7 countries in interest rate cuts, but the outlook is cautious. The BoC’s goal is to balance inflation control with economic recovery, and Macklem acknowledged that further rate reductions are likely if economic conditions deteriorate.

Meanwhile, other central banks, like the European Central Bank and the U.S. Federal Reserve, are also considering cuts as global economic uncertainty spreads.

What’s next: The BoC will review economic data leading up to its next announcement on October 23. If growth does not meet expectations, a larger rate cut could be implemented to spur the economy.

Markets are already pricing in a rate reduction in December, with ongoing uncertainty about how the global economic environment will impact Canada’s recovery.