The Canadian housing market has seen an increase of 20% in the last year. Since our salaries have barely budged in that same time period, more and more people are feeling the squeeze of the current housing market.
Many of our clients are wondering if the cost of housing is ever going to come down, so we’ve written this blog post to evaluate the situation of Surrey’s housing market.
Metro Vancouver Housing Market in 2022
According to the Multiple Listing Service (MLS), a residential property in Metro Vancouver currently sells for an average of $1,235,900.
But how does this number translate into trends in Metro Vancouver’s housing market?
While these numbers paint an optimistic picture, we need to look at the whole situation. In early 2022, the Bank of Canada increased the Canada interest rate from 2.7% to 3.7% (a total increase of 1%). To put this number into context, for a $400,000 mortgage, the increase in Canada interest rate will cause monthly payments to go up by $150.
So, while the prices are decreasing in the Canadian housing market, the Canada interest rate has increased. These two changes can effectively cancel each other out – leaving potential homeowners in the same financial spot as they were earlier this year.
Surrey’s Housing Market in 2022
As discussed in the pervious section, the housing market is competitive. The increased Canada interest rate doesn’t help the situation either. However, compared to the rest of Metro Vancouver, the housing market in Surrey is the most stable and the most affordable.
MLS evaluated the average price of a house in Surrey to be $955,225 in 2022. In terms of trends, the average price in Surrey’s housing market has:
- Decreased by 8.1% over the previous month
- Decreased by 16% since the previous quarter
Since Canada interest rate has increased this year, buyers may want to compensate with Surrey’s more affordable housing in order to bring down their monthly mortgage payments.
Explaining the Different Areas of Surrey’s Housing Market
Surrey is the second most populated city in Metro Vancouver and boasts the largest land area. Due to its size, its important to know the different regions in Surrey when you’re considering the housing market:
- North Surrey: includes the neighborhoods of Guilford, Whalley, Fleetwood, and Surrey City Centre. Surrey City Centre is considered Surrey’s second downtown. It’s commuter-friendly and a hub for businesses and entertainment.
- Central Surrey: includes the Newton neighborhood. Bordered in the north by 88th avenue, in the south by 48th avenue, and in the east by 152nd street
- Cloverdale: situated in the central-eastern area, it includes newer neighborhoods of West Cloverdale and East Clayton
- South Surrey: located below 48th avenue near the White Rock border
The Next Steps
Owning a home is a milestone for many people. You need a place to call your own and raise your family in comfort and security. But buying a house in the current housing market can be challenging.
We’re here to help. Our goal is to make this process easy and enjoyable for you. We equip you with all the tools needed and provide you with the most up-to-date information. We’re here to be your guide in the housing market! Contact us today to get started.