Navigating the Shift: Fernie's Real Estate Pulse & Bank of Canada's Rate Cut - May 2024

Explore the latest trends in the Fernie real estate market with our comprehensive May 2024 market report. This episode delves into the effects of the Bank of Canada's recent interest rate cut and its potential impacts on property buyers and sellers in Fernie.

What's Inside This Episode:

• Bank of Canada Update: Learn how the latest 25 basis point cut to 4.75% might signal a new cycle of rate reductions, potentially affecting mortgage rates and market liquidity.
• Fernie Market Analysis: Get the latest data with 30 new listings this May, an 11% increase from last year, and understand the dynamics behind the stable sales numbers and the average sale price of $781,185.
• Investor Insights: With the average list price up by 9% at $839,879, we discuss what these figures mean for investment strategies in the current economic climate.
• Market Trends: A detailed look at the sale-to-list ratio, days on the market, and monthly supply of inventory (MSI), which has risen to 6.94, clearly indicating a shift towards a buyer's market.

Key Takeaways for Real Estate Enthusiasts:

• How Fernie’s real estate trends can guide your buying or selling decisions.
• The potential effects of the Bank of Canada's monetary policy on real estate investments.
• Strategies to navigate a buyer's market with increased days on market and growing inventory levels.

Connect with Us: For personalized advice or a deeper discussion on how these changes could impact your real estate goals, contact Phil Gadd at First Tracks Real Estate Group.

Listen Now and equip yourself with the knowledge to make informed real estate decisions in these changing times.

#FernieRealEstate #BankOfCanada #RealEstateInvestment #PropertyMarket #HomeBuyingTips #RealEstateTrends

Transcript

0:00

Welcome to the property mindset podcast. The home of the Fernie real estate market report.

Phil: 0:07

So welcome back to the Property Mindset Podcast with me, Phil Gadd. Today, it is my monthly market report. So we will look back at the property market here in Fernie for May, 2024. But exciting news, the Bank of Canada has lowered its overnight lending rate by 25 basis points to 4.75% So does this signal a rate lowering cycle with the expectation of gradual rate cuts over the next 12 months? We'll just have to wait and see. So the Bank of Canada reduced interest rates due to the below forecast GDP growth and excess supply in the economy anticipated gradual rate cuts of 25 basis points per meeting until maybe hitting 2.75. We're not sure fixed rates sorry, fixed mortgage rates likely already reflect expected rate cuts variable rates may take seven rate cuts to fall under the fixed cut variable rates. Bank of Canada lowered its overnight lending rate to 4.75%. Let's get into the market report. market summary May 2024 new listing says 30 new listings as of May, 2024. That's up 11% on this time last year. We're exactly the same number of solds for May 14. That was the same as 2023. The average list price for May 2024, it's up on last year, but it's down on the month before. So currently May 2024, the average list price here in Fernie is 839, 879. That is up 9 percent on 2023. And the sold listings down about 200,000 on April but up on last year. So the average sale price for May, 2024 is 781,185. Sell to list ratio. So what things are actually selling for, compared to what they listed for, that's down 4% to 94%. Days on market. That's shot up. days on market is at 88 days. So that's up 147 percent on this time last year. The month supply of inventory, the inventory. MSI number. Now that's shot up to 6. 94, that's up 34 percent on this time last year. So what that's showing us, that's giving us a real indication that we are in a buyer's market. Inventory's up, but buyers aren't buying. Maybe buyers were waiting for today's bank of Canada interest rates. It's good news for buyers because it dropped 25 basis points to 4.75% So we'll see if that has kickstart on this this spring market and bring buyers back to the table. We just need the buyers to come out and hopefully the rate cut will encourage them to do but as we can see from this graph, we're still on an upward trend. The total average as of May 2024 for Fernie is 861, 075 that's down slightly on April by about 30, 000. But as you can see, it's still an upward trend. The average sale price in Fernie It's definitely on that upward trend. So between 21 and 22 house, the average house price grew by 13%, 14 percent growth was between 22 and 23. And as it stands of May 24, The average sale price, as I said, is 861, 075. That's up 15 percent on last year down slightly from

pmp---may-market-report_1_06-05-2024_091544: 4:35

April,

Phil: 4:35

April. We were racing away at 19% 18%. Sorry. We were down slightly. This month to the growth of 15 percent. The market report for May, 2024 will Wednesday's Bank of Canada interest rate announcements where they dropped the interest rate by 25 basis points to 4. 75%. Will that bring the buyers back to the table? Will that bring the buyers back into the market? Only time we'll see. But if you do have any questions about the current market or you're looking to buy or sell in the Fernie or surroundings areas, it's Phil Gadd with First Trax Real Estate Group EXP Luxury and EXP Royalty. I'm happy to help with any questions or inquiries you may have