Call it a CRASH 📉 Surrey and Fraser Valley Housing Market Update

The Surrey and Fraser Valley housing market appears to have officially crashed. With rapidly rising interest rates significantly tightening lending rates the Fraser Valley real estate market has seen a sharp turn back from the peak when it comes to both home prices & sales.

In this video, Surrey Real Estate Specialist, Steve Karrasch of Macdonald Realty takes a hard look at how the BOC’s monetary policy change from quantitative easing (QE) to quantitative tightening (QT) in the form of rapid and consistent interest rate increases this year has impacted Surrey and Fraser Valley real estate. Steve also shares his thoughts as to what the future may hold for the Surrey & Fraser Valley real estate market.

#SurreyRealtor #SurreyRealEstate #FraserValleyRealEstate

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The opinions expressed herein are solely that of Steve Karrasch PREC and not Macdonald Realty or the FVREB and should not be misconstrued as advice or the basis of an agency relationship whatsoever. Please consult your professional advisor prior to taking action on any decisions relating to the matters discussed in these videos. This communication is not intended to cause or induce breach of an existing agency agreement.

[tmurrayis]

Perhaps not in your wheelhouse but I am thinking there may be some opportunity in the recreational property market. People whom have bought that lake front cottage on Pitt lake or Harrison using the crazy low interest rates we enjoyed for so long may now find the second property unaffordable?
P.S. I was around in 1981 so I have seen 17+% rates and what that did to people when they went to renew their mortgage. Hold on to your hats folks, it may get rough.

[jshin]

20years ago immigrants working for Mac Donald could have their own “house”

Now even medical doctors cannot afford

Situations extremely far different

[burlsmcburls]

I'm wondering how significant the real estate price drops within the next year will really be, given that the sales will be so thin. Interest rates will come down sooner or later, and when they do, real estate prices will move right back up. By the time the interest rates go down, the supply of homes will be desperately low.

[terryevp]

Great information. Finally, someone gives an honest opinion..!!!

[RageandSig]

I sure like this fellow. Just tells it like it is. Honest and fair.

[KermitClips]

Thanks for update. No relief until next year I feel.

[shannonbarthelette]

Downsizing? I have a question. Why is a bad idea to downsize in this market? If u have a paid off property and are buy-in a smaller property cash, , how are u losing? U are selling low but alsombuying low. Net zero?

[pontiac_montana]

YES! Born in raised around the mega-mansion-suburbs of Surrey all my life and now I FINALLY might have a chance actually being able to be a homeowner one day!

[chevyjazz]

Really appreciate your videos. I want to buy a small condo eventually so I'm ok to wait for a while. Trying to make sure I don't lose my job and keep savings/down payment growing.

[mr.d]

The fact that you and everyone were wrong about how aggressive rate hikes would be also shows that you're likely wrong about the fact that the worst price declines are behind and yes the market can easily drop 50% from here

[ldars]

Great video and advice.

Only one comment regarding the bottom of the markets.: I recently read that in US previous market crash started in 2007 and the bottom was reached in 2012.

Right now we have a low inventory on market, after 6 months of decline, if will continue like that, probably the bottom will be 2-3 years from now

[marcondesfontes]

Man, your videos are great. Prices in Vancouver are unbelievable, so expensive! I'd like to live there, but everything in life has the right moment. Future belongs to GOD!

[cricketlovervaruns]

You predicting bottom timing sometime in q3 2023. How about the price bottom ball park price? Early 2021, pre pandemic or something else?

[GreenBeanGreenBean]

The higher the rates the faster new supply goes to 0, which means down the road will result an even larger spike up as housing becomes even worse shortage situations.

Houses in middle of nowhere will take a very long time to recover, houses near jobs will recover quickly. Condos are still up on the year since Jan1 (at least in GTA) and up affordability crunch is pushing everyone downhill.

[BitNaptime]

Karrasch predicts crash! Sorry, couldn't resist. It's Bad Joke Monday here.

[Dwayne_the_Fitness_Guy]

So I think it’s hard for anyone to make predictions, you are making many based on previous trends, which I don’t necessarily believe are going to repeat themselves. The only thing propping up the market, besides foreigners and corporations, which shouldn’t be allowed, is inventory. Inventory is being addressed nationally and this alone could help tame prices over the long term, as well sooner or later baby boomers are going to sell and it’s not going to be too much later based on their age. Not everyone has to return to the office anymore, and remote work could continue to effect the demographics of where people need to live. Big cities are expensive and mostly suck so few really want to be there if they don’t need to be. However inflation is a world wide problem that we will not solve here in our small country so you can expect interest rates as high as 8 % or higher. Keep in mind that mostly everything is still going up in cost, it’s only been fuel that has come down recently. Anyway how a $300, 000 house can be worth $1 million a decade later is way too much of a head scratcher and I don’t expect that can last. Housing will need to eventually rebalance with incomes and that will make the 1 million dollar house worth $500, 000 within 1-2 years

[dillyp]

buy when there's blood in the streets, even if the blood is your own and I'm bleeding out right now.

[Lpmeff]

Go story I don’t think your right I believe money more costly for 25 years

[samoday]

To be fair who wants to live in surrey ?

[sebastienledoux]

I have a question for everyone: Can someone who's underwater in their mortgage, and has 2 passports, can simply bail and leave the country?