There is no denying that 2020 has been a year like no other — and it’s a statement that is truly applicable to the real estate industry. Although the entire country has been dealing with the unique kind of uncertainty that comes along with a pandemic, home sales have not stagnated but have instead risen at unprecedented rates.
This has certainly been the case in the Surrey, BC market, where home sales have gone up 110% in 2020 alone.
Have Home Prices in Surrey Really Gone Up 110%?
It may seem hard to believe, but it is true that demand for houses in Surrey has risen more than 100% since the beginning of 2020. This is referring to both townhouses and single detached homes, and not necessarily condo units. For both freestanding homes and attached townhomes, 541 sales occurred in November of 2020 compared with 258 sales in 2019. This outpaces even the housing market of nearby Vancouver, which is notorious for its frequent home sales and high prices.
Why is There an Increased Demand?
Although the high demand for housing does have many experts scratching their heads, there are some reasons that point to a viable explanation.
Firstly, with the pandemic resulting in most people being largely confined to their private living spaces, many families have used this time to invest in their home to make it as comfortable as can be. In many cases, this means purchasing a new home altogether, whether it’s not increased indoor living space or a larger yard area.
On this same note, those who are comfortable in their living spaces may be less likely to let go of them, or even apprehensive to go through the process of buying a home during a global pandemic. The fact that there have been fewer homes on the market has resulted in a lower number of houses to choose from, which has increased home demand.
Lastly, since interest rates from the Government of Canada have been at an all-time low, this is another driving factor for anyone who is looking to pick up a mortgage.
Where Will Home Sales Go From Here?
If we thought that the Canadian housing market was possible to predict, all it takes is records like this to prove to us that this market can be unfriendly to speculation. However, we can still try.
Even though the Canadian housing market has already witnessed shocking growth, most experts agree that it isn’t going to slow down anytime soon. In fact, conservative estimates reckon that housing sales may grow another 6% in 2021.
Where is the Hottest Real Estate Markets in Canada?
If you think that this sharp uptick in housing sales is unique to Surrey or even the Fraser Valley, then think again. It is a trend that is being seen all across Canada.
In fact, the “hottest” cities are not even in British Columbia. When trends are looked at across the country, markets in Montreal, Guelph, Windsor, and Halifax are all showing unprecedented increases in house sales.
What is Fueling the Increase in These Areas?
One possible reason for the increase in home sales outside of inner cities is the increase in remote work. With many individuals no longer needing to perform a commute to a job site, more potential homebuyers are setting their sights outside of the major cities to include more suburban or even rural communities.
Your Surrey and Langley Real Estate Experts
Whether you are looking to buy or sell, you will need some help in this tumultuous market. The experienced and friendly Surrey real estate team is here to answer your questions and give you support. They would love to be a part of your next journey as a homeowner!