Happy Thursday!

There are lots of things happening in Fraser Valley as we are moving into the cooler months.

A new bus line extension may pave the way for a train line in Surrey, and a new state-of-the-art hospital is in the works to accommodate our growing population.

We’re also taking a look at what interest rates could mean for the housing market as time progresses.

Enjoy!

— Scott

🚌 City Council Unanimously Approves King George Boulevard BRT Line

Driving the news: Surrey City Council has given unanimous approval to TransLink's King George Boulevard Bus Rapid Transit (BRT) line proposal without debate.

This move positions the BRT as the inaugural project in TransLink's 10-year plan stretching from 2025 to 2035.

Details: The new BRT will not only replace the existing R1 RapidBus but will also extend it considerably, running between Surrey City Centre and South Surrey via King George Boulevard.

Its current counterpart, the R1 RapidBus, connects Gilmore Town Centre to Newton bus exchange.

Why it matters: This particular BRT line was chosen for its feasibility, as it's the only one among nine proposed routes that connects with just a single municipal jurisdiction.

The R1 RapidBus already has impressive ridership figures, with Surrey surpassing its 2019 pre-COVID public transit numbers by 20%.

The big picture: For the BRT, previous design plans from the cancelled Surrey Newton-Guildford LRT project might be revived, specifically for the busway's design.

Yet, creating bus-only lanes in the southern route segment presents a challenge.

Between the lines: "This BRT meets immediate needs and aligns us for future undertakings," commented city councillor Harry Bains.

Bains emphasized that a successful BRT would catalyze the city's objectives, enhancing transit-linked development along King George Boulevard.

He also hinted at the BRT possibly streamlining future SkyTrain-related infrastructure efforts.

What’s next: Historically, Metro Vancouver's B-Line has been a prelude to the SkyTrain. These bus services help foster demand in preparation for long-term, rail-based transit improvements.

The bottom line: The unanimous approval by Surrey City Council is a significant stride towards not just improving immediate transit but also laying the groundwork for potential SkyTrain expansions in the future.

🏗️ Cloverdale Hospital's construction costs rise almost 75%

Driving the news: The city of Surrey has officially kicked off the construction of its second hospital, the Cloverdale facility.

But the hospital's budget has witnessed an unexpected surge, rising by almost 75%.

Details: Initially priced at $1.66 billion in 2021, the Cloverdale hospital now comes with a hefty $2.88 billion tag.

This escalation puts it about $730 million above the cost of the extensive replacement facility for St. Paul’s Hospital under construction near Vancouver's Chinatown.

Why it matters: A significant rise in construction materials, equipment, and labor prices, driven by inflation since 2022, has driven up costs.

Despite this, the local government remains committed to advancing the project.

The big picture: The Cloverdale Hospital, located south of the Kwantlen Polytechnic University campus, will address Surrey and Langley's growing population’s health needs.

Moreover, the facility will also house a new regional cancer centre.

By the numbers: The hospital will offer 168 beds, including an emergency department featuring 55 treatment spaces.

The incorporated BC Cancer Centre will provide a 50-room oncology ambulatory care unit, 54 chemotherapy treatment spaces, and six linear accelerators for radiation therapy.

Between the lines: This is not just any hospital; it's a "state-of-the-art smart hospital" featuring cutting-edge digital tech.

Remarkably, it will be among Canada's first fully electric hospitals, sidestepping the use of fossil fuels as its primary energy source.

What’s next: The Cloverdale Hospital's construction is set for completion by 2029, with the facility opening its doors to the public in 2030.

The bottom line: Despite the soaring costs, the Cloverdale Hospital represents an indispensable asset for Surrey's growing community.

When completed, it is expected to alleviate pressure on other Fraser Health hospitals, while setting a new standard for advanced healthcare facilities in the region.

🎥 Tour a $989k Fully Renovated Cloverdale Townhome in Surrey's Desired Gated 55+ Community

Take a look inside this completely renovated townhome in Turnberry - a sought-after gated 55+ community!

💰 Interest Rates and Canada's Housing Market: What to Expect

Driving the news: Driving the news: Canada’s major real estate markets may see a revival if interest rates lower, as new property listings surpass sales, according to industry experts.

Details:

• In Toronto, September experienced a dip in home sales with a decline of 12% from August and a 7.1% year-over-year drop, based on TRREB data. There was also an influx of 16,258 new listings, marking a 32% spike from August and 44.1% from the previous year.
  

• Meanwhile, Vancouver saw an increase in inventory with 5,446 new listings in September, a 28.4% hike from September 2022, as per Real Estate Board of Greater Vancouver. Sales amounted to 1,926, representing a 13.2% annual increase but were down by 16.1% from August.

Despite the disparities in sales data, both cities' housing prices are affected by current market dynamics, particularly the influence of interest rates

Why it matters: While both cities have seen price surges compared to last year, dwindling sales coupled with high inventory might begin to apply downward pressure on home prices.

The big picture: Toronto's average price rose by about 3% from the previous month and year, settling at approximately $1.1 million.

Metro Vancouver's composite benchmark reached $1.2 million, marking a 4.4% annual increase but a slight 0.4% decrease from August.

Between the lines: Steve Saretsky, a Vancouver realtor, commented on sales being "technically up year over year" but took note of the weaker comparison to September 2022's poor performance.

He stressed the significant role interest rates play, especially regarding new housing supply, believing a 6.5% mortgage rate might overshadow immigration's impact on the market.

John Pasalis, from Realosophy Realty Inc. Brokerage in Toronto, expressed a similar sentiment in a joint interview, emphasizing interest rates as the "main factor driving the trends in house prices" for the upcoming year. He added that interest rates significantly influence homebuying decisions and those forced to sell due to over-leverage.

What’s next: Pasalis holds reservations about the federal government's upcoming spring budget as a tool to rejuvenate the housing market. He stated, "The big driver right now is interest rates and there’s not much the Feds can do to get around that."

The bottom line: The direction of Canada's housing market in the coming months will largely hinge on interest rates.

With new listings surpassing sales, potential downward pressure on prices is looming, and industry experts believe policy interventions might not offer immediate relief.

📰 In Other News:

• Delta council endorses plan to meet housing targets
  

• Vancouver marks record year with 1.25 million cruise ship passengers in 2023
  

• Truck Museum has four years left on Cloverdale Fairgrounds

📊 Current Market Snapshots:

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