click on link above to see Encouraging BC Stats from Dr. Bonnie Henry and stats comparing us to others as of March 30,2020
For Immediate Release: April 2, 2020
March sales and new listing data show preliminary impact of
COVID‐19 on Fraser Valley housing market
(FVREB) indicates COVID‐19 has put the market on pause, as REALTORS® and the public adhere to health authority rules and government guidelines on the pandemic.
By the end of March, the FVREB processed a total of 1,441 sales on its MLS®, a 7 per cent increase compared to sales in February 2020, and an 18 per cent increase compared to the 1,221 sales in March 2019.
During the first seven business days of the month, property sales were tracking 60 per cent higher compared to the same period in March of last year,
however finished significantly lower.
Chris Shields, President of the Board, observes, “Sales were steadily increasing as is typical moving into spring, and then understandably and necessarily, they started to decline.
We serve the public and we understand it is very challenging to
buy or list a home while maintaining physical distancing, however if you need us, know that we are here for you.”
“We are grateful that the BC government has designated real estate an essential service, and accordingly, our industry has implemented numerous measures to mitigate and manage risk.
We have suspended open houses, restricted showings, pivoted to using technology as much as possible, and are urging Realtors in the middle of completing
transactions with their clients to do so electronically.”
The Board received 2,666 new listings in March, a 4 per cent increase compared to February’s intake of 2,557 new listings. In the lead up to March 10, new listings were tracking 3 per cent higher compared to the same period last year.
By month end, new listings finished 7 per cent lower compared to March of last year taking the number of active listings to 6,083, an increase of 6 per cent compared to February’s inventory and a decrease of 13 per cent year‐over‐year.
- In March, the average number of days to sell an apartment was 27
- 28 for townhomes and
- 38 or single family detached.
MLS® HPI Benchmark Price Activity
*Single Family Detached: At $988,500, the Benchmark price for a single‐family detached home in the Fraser Valley increased 1.8 per cent compared to February 2020 and, also increased 2.6 per cent compared to March 2019.
* Townhomes: At $549,600*, the Benchmark price for a townhome in the Fraser Valley increased 0.7 per cent compared to February 2020 and increased 1.3 per cent compared to March 2019. *Effective Mar 2020, MLS® HPI for townhomes updated and revised back to Jan 2005
* Apartments: At $423,200, the Benchmark price for apartments/condos in the Fraser Valley increased 2.1 per cent compared to February 2020 and increased 1.2 per cent compared to March 30, 2019.
The Fraser Valley Real Estate Board is an association of 3,673 real estate professionals who live and work in the BC communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.
The FVREB will mark its 100‐year anniversary in 2021.
Mortgage Update- Chad Dreyer March 30, 2020
Bank Of Canada Emergency Rate Cut
We have seen some major developments in the Canadian mortgage market in the last week in a response to the Covid-19 epidemic, most notably Friday the Bank of Canada made another emergency rate cut bringing the key lending rate down to 0.25%, the major Canadian banks have followed suit and dropped their prime rate to 2.45%. This change will again affect all existing Variable rate mortgages, as well as Line of Credit products.
The key lending has now fallen from 1.75% at the start of the month to its current rate of 0.25%, the last time the overnight rate fell so much in the span of of a month was in 1992.
Questions on whether we we would see negative interest rates were answered Friday when Friday Stephen Poloz from the BOC confirmed the bank would not drop interest rates into negative territory saying “this unscheduled rate decision brings the policy rate to its effective lower bound”
The current forecast is for the key rate to stay at 0.25 with no further changes through 2020/2021
BIG NEWS FOR MARCH 4, 2020.
Bank of Canada lowers overnight rate target to 1 ¼ percent
The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1 ¼ percent. The Bank Rate is correspondingly 1 ½ percent and the deposit rate is 1 percent.
While Canada’s economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding.
Before the outbreak, the global economy was showing signs of stabilizing, as the Bank had projected in its January Monetary Policy Report (MPR). However, COVID-19 represents a significant health threat to people in a growing number of countries. In consequence, business activity in some regions has fallen sharply and supply chains have been disrupted. This has pulled down commodity prices and the Canadian dollar has depreciated. Global markets are reacting to the spread of the virus by repricing risk across a broad set of assets, making financial conditions less accommodative. It is likely that as the virus spreads, business and consumer confidence will deteriorate, further depressing activity.
In Canada, GDP growth slowed to 0.3 percent during the fourth quarter of 2019, in line with the Bank’s forecast, although its composition was different. Consumption was stronger than expected, supported by healthy labour income growth. Residential investment continued to grow, albeit at a more moderate pace than earlier in the year. Meanwhile, both business investment and exports weakened.
It is becoming clear that the first quarter of 2020 will be weaker than the Bank had expected. The drop in Canada’s terms of trade, if sustained, will weigh on income growth. Meanwhile, business investment does not appear to be recovering as was expected following positive trade policy developments. In addition, rail line blockades, strikes by Ontario teachers, and winter storms in some regions are dampening economic activity in the first quarter.
CPI inflation in January was stronger than expected, due to temporary factors. Core measures of inflation all remain around 2 percent, consistent with an economy that has been operating close to potential.
In light of all these developments, the outlook is clearly weaker now than it was in January. As the situation evolves, Governing Council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target. While markets continue to function well, the Bank will continue to ensure that the Canadian financial system has sufficient liquidity.
The Bank continues to closely monitor economic and financial conditions, in coordination with other G7 central banks and fiscal authorities.
The next scheduled date for announcing the overnight rate target is April 15, 2020. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.
Click on the above link to view the current COVID-19 STATS For BC