The world-wide pandemic has changed everyone’s lives and caused us to re-evaluate our values and our priorities. There has never been a more important time to truly appreciate our families and “home, sweet home.”

Many people are highly motivated to find a larger, cleaner, more comfortable space, with room for elderly parents and/or grown children moving home.

Due to the pandemic, many people are working from home and would like to continue with this arrangement after the pandemic ends. They are finding it difficult, however, to find a quiet, efficient place to work in their present home. Many have also recently included a fur baby or two, and would greatly benefit from having a big yard for everyone to play in!

Detached homes are in very high demand in the Fraser Valley. This hot market demand is likely to continue into 2023 while economies recover. It is definitely a seller’s market on the Lower Mainland with competition comparable to 2016.

However, active listings fell by 21.5% last month, reaching their lowest reading in 21 years; making it difficult to supply for the level of demand in the market. Single family home inventory is near record lowest on record.

Chief economist Brendon Ogmundson of the real estate association said that interest rates in 2016 were 2.5 per cent. Now, they are at 1.8 per cent, and that drop is a huge stimulus and is one of the biggest reasons for the increase in demand. Other factors include optimism about an economic recovery after the pandemic and a segment of buyers with savings still on the sidelines, said Ogmundson.

Homeowners interested in selling will see a lot of interest in their detached homes, often receiving multiple offers. High demand for more space and low-interest rates being offered by the banks are creating bidding wars among anxious buyers.

The Canadian Real Estate Association says that markets across Canada should either hold in pricing or climb higher. Most models from industry professionals and economists are predicting an increase of approximately 9%, citing limited inventory and unmet demand as major market drivers.

To support borrowing, we expect mortgage rates to remain low throughout 2021. The extremely low rates introduced last March have enticed first time home buyers who didn’t have their incomes adversely affected by the pandemic. For many, it’s a great opportunity to enter the market.

The Bank of Canada wants to encourage spending and stimulate the economy by keeping interest rates low. Given the challenges Canadians have faced resulting from the pandemic, that is what they intend to continue to do. Last year, the Bank of Canada claimed that rates would remain low until 2023.

“Buyers are very motivated right now,” said Chris Shields, president of the FVREB. “Lending rates are the lowest they’ve ever been, your housing dollar goes further in the Fraser Valley, and we’ve seen a societal shift in the last year in how people value their homes.”

I have attached the most current price and sales statistics from HomeLife Benchmark Langley to help you budget for your most desirable location.