Happy Friday! There are some exciting things happening in our local economy this week, the new SkyTrain Extension changes, Surrey becoming world-ranked in the food scene, and more!

Keep reading to learn about how these changes will impact the real estate market in our area.

— Scott

🏘️ B.C.’s Housing Market Update

B.C.'s housing market is experiencing a slower-than-usual spring with sales and inventory down. However, this has triggered a rise in prices in some regions, such as Metro Vancouver and the Fraser Valley.

The big picture: Despite lower activity, the Real Estate Board of Greater Vancouver has noticed residential home prices climbing by about five per cent so far this year, and the B.C. Real Estate Association’s second-quarter housing forecast suggests the market has entered a "low-activity equilibrium."

Why it matters: With sales about 25% below typical spring market levels and a lag in listings, an uptick in home sales despite high mortgage rates indicates pent-up demand.

"With the Bank of Canada on hold and fixed-mortgage rates still stubbornly high, home sales are unlikely to fully normalize this year," says Brendon Ogmundson, the association’s chief economist.

Details: Andrew Lis, director of economics and data analytics, notes that record-low inventory levels would create competitive conditions where any resurgence in demand would likely lead to price escalation.

He warns that "the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”

By the numbers: The benchmark price for residential properties in Metro Vancouver last month was $1,170,700, a 7% decline compared to April 2022.

In the Fraser Valley, with inventory down by about 32%, prices are also rising, with the benchmark price for a home up 2.8% to $992,000.

Despite lower sales and listings in April compared to the same month last year, prices have inched upwards in the first quarter of 2023.

The highest price increase was in Squamish, with an 8.5% rise.

What’s next: This situation could exert upward pressure on prices.

The association forecasts a price increase this year, even though it will still be around 6% lower than the record high in 2022.

While prices are slowly rising, it remains uncertain whether this trend will continue till the end of the year, especially given the current high borrowing costs.

Bottom line: B.C.'s housing market is navigating through a tricky period, with low activity leading to a slow rise in prices.

As the market continues to adjust, buyers, sellers, and real estate professionals will be keeping a keen eye on these developing trends.

🚊 Surrey’s Fleetwood Neighbourhood Braces For SkyTrain Extension Changes

Driving the news: Surrey's Fleetwood neighbourhood is preparing for substantial changes as the SkyTrain extension project kicks off. With up to 30 new towers proposed along Fraser Highway, the area is set for a significant transformation over the next decade.

Why it matters: This $4-billion project aims to connect the current King George Station terminus with Langley City via a 16-kilometre track along the Fraser Highway, potentially bringing an influx of new residents and businesses to the Fleetwood area.

What residents are saying: Some residents look forward to the SkyTrain expansion's benefits, including better access to transportation. However, they also express concerns about the project's potential to exacerbate existing infrastructure and public safety issues.

Economic Impact: Proposals are in the works for 20 to 30 towers in proximity to Fleetwood’s three planned stations.

The area is expected to accommodate an estimated 30,000 new residents over the coming decade.

The neighborhood also expects to see a couple of hundred styles of business, and more retail shopping come to the area as a result of the SkyTrain extension.

Local Concerns: The anticipated development and population growth bring with it several concerns.

Key among these are the challenges of construction, traffic congestion, inadequate sidewalks, and already-capacity schools.

Residents are also apprehensive about the potential increase in crime rates with the influx of new residents.

The Surrey School District, already grappling with adding up to 2,200 new students per year, warns of a potential strain on schools if development along the SkyTrain line isn't carefully managed.

What’s next: Despite concerns, the City of Surrey’s Planning and Development department is actively adjusting plans to ensure there are sufficient parks, school sites, pedestrian networks, and streets to accommodate projected densities.

🥗 Surrey Named the 'World’s Next Great Food Cities'

Surrey has been recognized as one of the world's emerging cities for food lovers, according to Food & Wine magazine.

The city's diverse food culture, reflecting its rich cultural diversity, stood out in the publication's May 2023 edition, earning Surrey a spot alongside global culinary hotspots from France to Mexico.

Key Points:

• The recognition is part of a larger Global Tastemakers roundup by the magazine, incorporating a reader-input survey.

• Local author and writer Bianca Bujan highlighted Surrey's numerous restaurants that showcase the city's cultural diversity.

• The magazine recognized that Surrey is known for having one of the largest Indian populations in Canada, offering a rich food culture with influences from Africa, other parts of Asia, and beyond.

• Several eateries were spotlighted for their exceptional dishes, including Afghan Kitchen, My Shanti, Chacha’s Tandoor & Grill, Guacamole Mexican Grill, and Kerala Kitchen.

• The city's cocktail program at Clove and the Surrey Spice Trail food tour offering also received notable mentions.

These are the Food & Wine’s Magazine’s other 12 Emerging Food Cities:

• Kanazawa, Japan

• Brighton, England

• Tainan, Taiwan

• Puebla, Mexico

• San Sebastian del Oste, Mexico

• Marseille, France

• José Ignacio, Uruguay

• Venice, Italy

• Clermont-Ferrand, France

• La Paz, Bolivia

• Senigallia, Italy

This recognition from Food & Wine magazine puts Surrey on the global food map, marking it as an emerging destination for culinary enthusiasts. The city's diverse food scene, reflective of its multicultural population, is being celebrated internationally, reinforcing Surrey's status as a culinary powerhouse alongside notable global gastronomic centres.

🏡 Featured Listings:

Inside a $1,599,990 Cloverdale Single Family Home

Tour a RARE $800K Cloverdale Surrey Townhome That AMAZED ME!

In Other News:

• City of Surrey officially restarts municipal-owned real estate development firm

• City of Surrey proposing to build Metro Vancouver's tallest office tower

• Massive SFU expansion and office towers proposed for Surrey Central Station

• Unique $3M "container house" for sale in North Vancouver

• Big expansion of Surrey's Central City Fun Park includes go-kart tracks, bumper cars, and mini golf

📊 Today’s Market Snapshots:

And just like that, prices are heading up, and multiple offers are back.

Our team had another busy month with another 7 sales, and that's what we were seeing right across the board in March.

Low inventory and lots of buyers are leading to multiple offers, and as a result, prices are heading up for the third straight month.

Prices were up with:

• Detached homes up 3.8%

• Townhomes up 1.7%

• Apartments up 1.6%

Now keep in mind prices are still between 10 to 20% lower than they were at the peak about one year ago.

Sales were virtually unchanged in April versus March, with 1554 sales and only 5.1% lower than April 2022.

And in terms of listing inventory, we usually see an increase in April versus March, but not this year April saw 3.2% fewer listings come on the market versus March and 31.6% less than April of last year.

So, in summary, there are a lot of buyers out there and not many sellers.

So if you're thinking of selling, now is a fantastic time as we are at a very strong seller's market, but if you need to turn around and buy, you're going to want to give yourself some extra time to do that.

If you have any questions about real estate in the local area, feel free to reach out to us at any time

That’s all for today, I hope you have an amazing week!

If there’s ever anything you need:

• a custom market or home value report

• a home services list for a reliable contractor or services professional

• feedback or a professional opinion on a home project

Just let me know! We’re here to help with all your home needs.

Talk soon,

Scott with the Moe Team

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