The following datat is the representation of market changes from November through December of 2022.

CHILLIWACK MARKET ANALYSIS:

The Fraser Valley has undergone a pretty drastic correction over the past 7 months. However, no other city has felt these effects like Chilliwack. These changes are due to increasing mortgage rates, more inventory, and seasonal changes. With sales being down by 70% compared to November, it's safe to say that buyers have taken a back seat during the winter months. Chilliwack is the only city in this market update to have a decrease in both sales numbers & sale price.

ABBOTSFORD MARKET ANALYSIS:

The market in Abbotsford has also slowed down, not to the extent of Chilliwack, but to a point where there is a noticeable change. Home sales are down 27% for detached, and 17% for attached, meaning that there are less buyers in the market who are willing to buy in this moment in time. One positive to take away from the decreasing sale numbers, are the increasing average sales price throughout the Fraser Valley.

LANGLEY MARKET ANALYSIS:

Langley has also seen the affects of seasonal changes, showing a decrease of 31% in sales of detached homes, and a decrease of 22% in attached homes. Howvever, like Abbotsford, there was a rsise the sale price on average througout Langley, which is a positive sign heading into the spring. 

If you have any questions about the current market, or what could potentially happen in the future, please don't hesitate to text, call or email me anytime! 

Adam Struch 

604-991-6393

Adamstruch@gmail.com

The B.C. government has commenced the start of the "Buyer's Rescission Period" as of January 3, 2023. Here are some of the important details;

• Buyer's now have a 3 business day grace period after an offer is accepted to rescind their offer. Meaning that if an offer is deemed "accepted" on a Monday, the buyer has until Thursday at 11:59pm to retract their offer.
• This might sound like a positive for the buyer, but keep in mind, this comes at a cost, which is 0.25% of the "accepted offer price". This amount is paid directly to the seller. Payment is based on whether a deposit is being held by a brokerage at the time of retraction.
• It applies to all residential real estate transactions, with a few exceptions (lease land, auctions etc.).
• The rescission clause is unable to be removed in order to help "strengthen an offer".

The BC housing market has seen quite the whirlwind of changes over the past year. A combination of rising interest rates, more inventory, and uncertainty has caused the market to undergo a slight pullback. Now, what does that mean going forward? Well, this is indeed a healthy change, a correction in which the market needed to help keep it healthy. The way in which the market was trending for the past two years was an anomoly created by a severe lack of inventory, and record low interest rates...Long story short, the demand far outweighted the supply. 

The big question now is, "what is going to happen in 2023?". This is the question on everyone's mind who either owns a home, or is thinking of buying one. Nobody really knows what is going to happen over the next few months, but there are some new changes to the industry which will shake it up a bit in early 2023. These changes now include: 

1. CANADA'S FOREIGN BUYER BAN

Starting in January 2023, non-Canadian residents will be banned from buying homes across Canada, through the Prohibition on the Purchase of Residential Property by Non-Canadians Act. This Act prohibits non-citizens and non-permanent residents from purchasing residential property in Canada for two years. 

2. EXPANSION OF BC VACANCY AND SEPCULATION TAX

The B.C. govermnet is extending its speculation and vacancy tax to more communities in January. 

Squamish, Lions Bay, Duncan, North Cowichan, Ladysmith and Lake Cowichan will be added to the list, which already included Metro Vancouver, Greater Victoria, Nanaimo, Lantzville, Abbotsford, Mission, Chilliwack, Kelowna, and West Kelowna.

3. MULTIGENERATIONAL HOME RENOVATION TAX CREDIT

The refundable credit allows families to claim uo to $7,500 to build a secondary unit in their home to accomodate seniors or adults with dissabilities. Starting in the 2023 tax year, the credit will cover 15% of up to $50,000 in renovation and construction costs. 

To qualify, the secondary unit must be a self-contained housing unit with a private entrance, kitchen, bathroom, and sleeping area.

4. B.C. GOVERMENT INTRODUCES "COOLING OFF" PERIOD FOR HOME SALES

On July 21, the provincial government inroduced a "home buyers protection period", which outlines a new regulation that allowds for home buyers to recind their accepted offer on a residential purchase up to three days after signing. 

THIS REGULATION WILL COMMENCE ON JANUARY 1, 2023 - AS PER THE GOVERNMENT

5. UPDATED RESIDENTIAL PROPERTY FLIPPING STANDARDS

Canada's new anti-flipping standards for residential real estate are scheduled to come into effect on January 1, 2023, and are set out to "reduce speculative demand in the market and help to cool down the excessive price growth."

However, the new tax standard will disallow the use of the principal residence exemption to shelter the capital gains realized on the sale of the property, if you have owned it for less than 1 year. This will allow for certain exemptions such as death, disability, separation, and worj relocation. This will make the gain 100% taxable business income. 

If you have any questions about these changes, or about anything real estate, please don't hesitate to reach out at any time!