Langley Real Estate Market Update: December 2022 Opportunities Amidst Challenges


We hope this market update finds you well! Despite the challenges facing the Canadian economy and real estate market, there are still opportunities to be found.

“With continued high-interest rates and what looks like a difficult 2023 ahead for the Canadian economy, we anticipate that market activity is going to fall below normal levels next year.” – BC Real Estate Association

However, this does not mean that the market is stagnant. Last month, total sales were 730, a decrease of 59% from the previous year and a 10% decrease in volume from the previous month. It is worth noting that there were 3948 active listings last month, a 7% decrease from the previous month. This shortage of new listings and fewer sold shows evidence that Seller’s are giving up on the market and waiting for a hopeful Spring.

The median sale price last month was $950,000, representing a 10% decrease from the previous year and a 1% decrease month over month. However, certain property types saw value increases due to the limited inventory and the principles of supply and demand. If you are entering or exiting this market, it would be worth knowing how your unique property type and area are performing.

The spring market hits in the next few months, and as inventory increases, our team predicts that the prices have more room to fall, especially if the interest rates stay the same or possibly increase. As always, we reserve the right to change our advice! For example, if we see an end to the war, an interest rate cut or an unforeseeable amount of Buyers enter the market, our advice could change.

If you’re considering selling your Langley home in the colder months (now) before the rush of Spring, there are a few steps to make your property more appealing to potential buyers.

• Keep your home warm: This may seem like a no-brainer, but making sure your home is warm and comfortable can go a long way in making it feel welcoming to potential buyers. Keep your heat at a comfortable temperature and consider adding cozy touches such as blankets or throw pillows to make your home feel inviting.

• Make sure your home is well-maintained: Snow and ice can be a big turn-off for potential buyers, so make sure your sidewalks and driveways are cleared and safe.

• Use lighting to your advantage: Dark, gloomy days can make a home feel uninviting, so make sure you use plenty of lighting to brighten up your spaces. Consider using floor lamps, table lamps, and other sources of soft lighting to create a warm and cozy atmosphere.

• Emphasize your home’s energy efficiency: Cold weather can be tough on energy bills, so make sure you highlight any energy-efficient features your home has to offer. This can include things like energy-efficient windows, insulation, and appliances.

• Price your home competitively: As with any market, pricing your home competitively is crucial to getting it sold. Be sure to take into account local market conditions and the condition of your home when setting your asking price.

While it may require a bit more strategy and effort, we’ve had some successful listings sold in December and early January. And if all else fails, you can always bribe people with cookies and hot cocoa.

If that wasn’t all enough to digest, the BC government is further shaking things up! They’ve implemented some new rules to try and make things more transparent, fair, and protective for consumers. Here’s what you need to know:

Starting January 1, 2023, foreign buyers are banned from buying certain Canadian real estate for two years. This is part of the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which will last until December 31, 2024, for those who aren’t permanent residents or citizens of Canada. Any contracts written before January 1, 2023, won’t be affected. If someone is caught helping foreign buyers, they could face a fine of up to $10,000. Oh man, I hope you weren’t planning on buying a vacation home in Canada with your Swiss bank account!

On January 21, 2023, the Federal Government is starting a new tax credit to help cover the cost of renovating primary residences. The credit will cover up to 15% of renovation costs, up to a maximum of $7,500, for those adding a secondary unit for a senior or disabled immediate or extended family member.

Under the new Property Flipping Rule, if you sell a residential property within 12 months of buying it, any profits from the sale may be taxed as business income and won’t be eligible for the 50% capital gains rate or the principal residence exemption. There are some exceptions to this rule, like household additions, changes in employment, threats to personal safety, breaking up a marriage or common-law partnership, insolvency, and involuntary dispositions. If you have a property to flip, it’s a good time for a divorce. (Joking?)

And last but not least, there’s a Home Buyer Rescission Period in British Columbia, also known as a “cooling-off period.” This gives buyers a chance to change their minds within three business days of their offer being accepted. If a buyer decides to back out, they have to pay the seller a 0.25% rescission fee. This will only affect contracts with subject periods of less than three business days. The Home Buyer Rescission Period applies to detached houses, townhouses, semi-detached houses, apartments in duplexes or other multi-unit dwellings, residential strata lots, manufactured homes affixed to land, and cooperative interests that include the right of use or occupation of the dwelling. It doesn’t apply to residential real estate property located on leased land, leasehold interests in residential property, properties sold at auction, or properties sold under court order or supervision.

Phew, that’s a lot of legalese. Happy New Year! 

For personalized Fraser Valley real estate advice and strategies, contact us. We’d love to buy you a coffee or a beer! 

Love: Mike

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Mike Cook
Mike Cook
A blue-collar worker in a white-collar world, I spent most of my twenties building high-end homes, leading major renovations, restoring, and finding/fixing deficiencies in new construction. I am happy to use this experience to point out the potential of a home. I pride myself on always looking for a way of improving the experience for my clients, agents on my team, and my community through leadership, technology, and charity.

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