Langley real estate demand turns back to "normal motivation"
“Demand is normalizing with rising interest rates, but existing levels of supply keep market conditions tight.” – BC Real Estate Association
Last Wednesday The Bank of Canada raised its benchmark interest rate to 1.5% and has given us every indication that more rate hikes are on the way.
Generally, central banks will raise rates when they want to cool down an overheated economy and lower them when the economy is stuck in the mud. Unfortunately/fortunately, Langley real estate prices ran without brakes for 2 years and our home prices have risen by nearly 75%.
The Langley real estate market speed couldn’t last forever, so now most experts agree that we will see a break from hair-pinned back increases and at least a year of the market finding its footing.
With interest rates rising and some short-term uncertainty, I am highly recommending my investors be cautious with their purchases. There are some great opportunities in a shifting market, but that takes patience.
I predict most of the volume of our market returns to an environment where people are buying and selling because of more traditional factors like upsizing, downsizing, immigration and location change.
Each neighbourhood, type of home, and personal situation can make a huge difference, and in a market that is shifting so quickly, giving general advice to all is unwise. So if you’re in a position to buy or sell, please reach out and let’s discuss the most effective plan for your situation!
High-level market stats:
There were 1246 sales in May: a 53% decrease year over year and a 16% decrease from the previous month. May saw 4896 active listings: 15% more than the previous month. The median sale price was $1,080,000: 4% down from the previous month but still 17% higher than last year at the same time.