Happy Friday! It’s been a big week for the Canadian housing market with the latest interest hike.

Keep reading to see how our local economy is growing and how our communities are staying connected this summer.

— Scott

🏗️ The Surrey Skyline is Getting an Upgrade

Surrey, particularly its Whalley neighbourhood, is in the midst of a significant development phase, with an emphasis on high-density, mixed-use projects.

What’s happening: A new 37-storey glassy high-rise is coming to the 0.83-acre lot at 10318 and 10324 Whalley Boulevard, near Surrey Central Station.

The development will bring nearly 400 additional homes to the area.

The details: Chris Dikeakos Architects seeks to transform the space into a mixed-use hub, aligning with the city's goal of high-density development around SkyTrain stations.

The new structure will have 389 housing units, including 37 studio units, 209 one-bedroom units, 138 two-bedroom units, and five three-bedroom townhouse units.

The residential component of the building will be perched on a five-storey podium with around 5,400 sq. ft of commercial retail space.

Unique features: The development has been designed to meet Step Code 2 of the BC Energy Step Code with features like high-performance glass and water-efficient landscaping.

It will also pay the city's $1,068-per-unit affordable housing contribution, which is utilized to fund new affordable rental housing projects.

Renderings: The architectural design of the tower segments it into three distinct masses with distinct fins running down the north and south façades. The top of the tower slopes upwards towards the main building plaza, enhancing the building's presence on the skyline.

What's next: The Surrey City Council approved the building proposal on July 10th. Should everything proceed as planned, the building could be ready for occupancy by 2026.

The bottom line: This project is a testament to the ongoing urban transformation in Surrey, specifically in the Whalley neighbourhood.

It is expected to further augment the city's goal of creating high-density, transit-oriented communities.

🏠 June 2023 Real Estate MOEket Update: South Surrey, White Rock,
Surrey & Langley BC

📈 Bank of Canada Rate Hikes Have
Homeowners Sweating

Mortgage holders across Canada are grappling with a financial crisis following a rate hike from the Bank of Canada, which saw the key rate surge to 5.0% from the 0.25% overnight rate less than 18 months ago.

The increase is resulting in dramatically inflated monthly payments for many homeowners, particularly in markets with large mortgages like Toronto.

Driving the news: The latest quarter-point rate hike from the Bank of Canada — its tenth since March 2022 — presents a significant challenge for homeowners with variable-rate mortgages tied to the prime rate, and for those with fixed-rate mortgages due for renewal in the next couple of years.

What’s happening: As the key rate has steadily risen, fixed-rate mortgage holders renewing their terms have seen their monthly payments nearly double, while variable-rate holders have observed their payments increase substantially.

This situation is creating a scenario of 'forever mortgages,' where some homeowners find their debt extending into amortizations of 60, 70, or even 90 years.

The numbers explained: "In Canada, most people are on a five-year mortgage term or less, meaning the entire market is moving toward higher rates," says James Laird, co-CEO of mortgage brokerage Ratehub.ca.

With the recent rate hike, a homeowner who secured a five-year variable rate of 1.4% on a $1,245,700 home in January 2022, now faces a monthly mortgage payment rise from $3,937 to $6,465.

Those with fixed-payment variable-rate mortgages are seeing their amortizations automatically lengthened as their payments adjust to the rising rates, but they must return to their original contractual amortization agreement upon renewal.

This situation could lead to a substantial increase in mortgage payments when they renew, similar to those on fixed-rate mortgages.

The big picture: Despite the recent drop in inflation from a peak of 8.1% last June to the current 3.4%, the Bank of Canada expects it won't reach its 2% target until mid-2025.

Further interest rate hikes have not been ruled out, keeping homeowners on edge.

What the experts are saying: Phil Soper, CEO of Royal LePage, anticipates a pause in the Bank of Canada's rate hikes while it assesses the financial fallout.

However, he cautions that a longer period of rate increases could have a significant psychological impact on consumers due to the uncertainty injected into the market.

The bottom line: The rate hike has left Canadian homeowners in a precarious position, with variable-rate and fixed-rate mortgage holders both feeling the pressure of increased monthly payments.

The uncertain future of the Bank of Canada's interest rate decisions only compounds this issue, pointing to a challenging period ahead for homeowners.

What you can do: Leah Zlatkin, a mortgage broker and LowestRates.ca expert, advises homeowners concerned about making their payments to reach out to their lenders for help. Homeowners due for renewal should seek advice from a mortgage professional and consider their options.

🏡 Featured Listing:

Tour a $3,200,000 Langley BC Luxury Home!

This stunning Langley home sits on an acre lot and has its very
own movie theater!

🏓 Pickleball Enthusiasts Play for a Cause in Langley

Driving the news: The city of Langley welcomed pickleball enthusiasts from across British Columbia for the 2023 Douglas Park Charity Tournament last week.

The four-day event, packed with opportunities for play and prizes, also served a noble cause - supporting the local Douglas Park Community Elementary School.

The Details: The third annual edition of the tournament saw approximately 180 players join in, hailing mainly, but not exclusively, from Langley and nearby communities.

Participants traveled from as far as Kamloops and Vancouver Island to take part in this lively event.

Local politicians even joined in on the festivities on Saturday, underscoring the community involvement and engagement the event fosters.

What’s happening: Over the past few years, pickleball has experienced a surge in popularity across North America. The sport, a hybrid of tennis and badminton, appeals to all age groups, with seniors especially appreciating it as a lower-impact alternative to tennis.

The big picture: As the sport continues to grow, so too do the facilities, with new courts springing up throughout the Lower Mainland, including in Langley itself.

Why it matters: Kristina Crosgrey, the head fundraiser, pulled off the remarkable feat of securing 40 sponsors for the event.

The proceeds from the entry fees and prize draws will benefit the local school, providing much-needed support for its initiatives.

Over the past two tournaments in 2019 and last year, the event has already raised over $16,000 for the school, which is optimistic about hitting a target of $15,000 this year.

Bottom line: Events like the Douglas Park Charity Tournament highlight the power of sports to bring our local communities together for a good cause.

In Other News:

• Giants head coach leaves Langley for Leafs farm team

• B.C. city ranked as Canada’s third most expensive

• Langley townhomes garner top building accolades

📊 Today’s Market Snapshots:

Home prices, mortgage rates, and sales are all up!

June was busy for our team as competition is still very high in our local markets.

Prices were up with:

• Detached homes up 2.3%

• Townhomes up 2.3%

• Apartments up 1.8%

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

Sales increased significantly in June with a 13.1% increase compared to May.

In terms of listing inventory, we’ve seen a slight increase since May as well. May hovered around 5,558 active listings while in June we saw about 5,944.

So, in summary, we’re still in a sellers’ market. There are a ton 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