October 2024 Fernie Market Dynamics: Rate Cuts and Rising Inventory

In this pivotal episode of The Property Mindset Podcast, titled "October 2024 Fernie Market Dynamics: Rate Cuts and Rising Inventory," host Phil Gadd delves into the intricate details of the Fernie real estate market amid Canada's broader economic slowdown. We explore the ramifications of the Bank of Canada's recent aggressive rate cut and how it's reshaping buyer and seller behaviors in Fernie.

Key Topics Covered:

• Economic Overview: An examination of Canada’s recent economic performance, including flat GDP growth and its influence on real estate dynamics.
• Interest Rate Cuts: A deep dive into the Bank of Canada's substantial 50-basis-point cut, bringing the policy rate down to 3.75%, and predictions for future financial policies.
• Market Activity: Insights into the dramatic 82% increase in new listings and a decrease in sales by 9%, showcasing a market filled with opportunities and challenges.
• Pricing Trends: Analysis of the current median price holding steady and average prices showing a significant increase, affecting both buyer strategies and seller expectations.
• Market Predictions: Discussions on the potential for further economic interventions by the Bank of Canada and their possible impacts on the real estate market as we approach 2025.

📊 What This Means For You: Whether you're a first-time homebuyer, a seasoned investor, or a market spectator, this episode offers valuable insights into how to strategically navigate the evolving market conditions in Fernie. Learn about the key factors driving the market and how to position yourself effectively amid these changes.

Listen now and gain the insights needed to make informed decisions in an unpredictable economic climate.

Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Transcript

0:00

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

Phil: 0:07

Welcome back to the property mindset podcast. I'm Phil Gadd. As we navigate the shifting currents of Canada's economic landscape. And it's impact on the Fernie real estate market. This October with our Fernie real estate market report. Recent reports from statistics, Canada. Reveal economic growth rate has fallen short of expectations this year. With GDP growth flat-lining in August. And only a slight rebound in September. This slower than anticipated growth compounded with high borrowing costs. And temporary disruptions in key sectors is prompting speculation about the bank of Canada's next moves. In response to these economic challenges, the bank of Canada recently enacted a significant jumbo rate cut of 50 basis points. Bringing the policy rate down to 3.75%. This aggressive adjustment, driven by lower than targeted inflation and a sluggish economy. Aims to invigorate business, investment and customer demand. So join me while we look at what this really means for the Fernie real estate market. Are we looking at a buyer's market? With the potential for further rate cuts or is the market resilience going to surprise us all? Whether you're buying, selling, or simply want to stay informed This episode will provide the insights you need to make well-informed decisions in an unpredictable economic climate. So it's a market summary for October 2024. That means we are already in November. Two more months of the year remains. And yeah, the snow is falling. less than 30 days now to the Fernie Ski Hill opens. Sorry, get my words out. Hope everyone's excited. I know I am, kind of gets to this time of year and I can't wait to strap the board on and, do something different instead of, hurtling down, dirt. looking forward to the snow. So let's get into it. new listings, up 82%, this month, 20 new listings in Fernie, that's up 82 percent on this time last year. Sold listings are down 9%. We only had 10 sold listings in October, 2024. The median price, it actually is the same as last month. 720,000. That's up 3%. the average price, so the average house price, the average list price in Ferny in October, 2024. Was 906, 572. That's actually up 23 percent on this time last year. And the average sale price, as of October or in October, 2024 was up 18%, 820. 19, 920 a sale to list ratio, actually down 3 percent at the moment that is currently at 91%. So if you list your property, in October, 2024, the average, you'd have got for it was 91%. days on market actually up quite a lot, actually. So kind of means, one thing, How's this a staying on the market longer? 18 percent longer than this time last year. kind of means that maybe buyers, just holding back a little bit with all the, interest rate, cuts, thinking, are there more to come? Shall I hold off, and wait for that or, you know, and we're kind of seeing that in the days on market. But here's the thing. if you're ready to buy now and you don't get into the market with all these interest rates coming down, there's only going to be one thing and that's price rises come next year. So, it would be very advisable to get into, if you haven't spoken with a mortgage professional, get hold of one of those, have a conversation with them. I can definitely help there. I can recommend people and, see what your options are. we've been talking a lot recently about people, getting into the market with a variable on. if rates keep going down, then jumping back and locking it down with a fixed rate. So there's definitely lots of options at the moment. So if you are sitting on the sidelines waiting for more, Rate cuts I'm not sure if it's the best strategy, anyway, let's move on to month supply of inventory. The MSI number is almost at eight. so it's 7. 83. That's up 222 percent on this time last year. So that's how much more inventory, we have at the moment. So active inventory is up 173 percent on this time last year to 90 units. So we're going to look at the average sale price over the last decade. as of October, 2024, the average, house price is 828, 265, that's the whole, average house price this year, 2024 in Fernie. So average year on year increase in Fernie now standing at 8. 17%. So, you know, not bad return on your investment. as we saw the median, price of, property in Ferny, is the same as last month at 720. the median year on year increase is at 7.87%, same as last. No, no real change there from, from last month. let's, zoom in and, look at the, average, sale price over the last four years, since 2021. so that's actually increased by 14.8. if you bought property back in 2021, it's gone up 14. 81 percent every year, since you bought it, looking at the median, nothing's really changed since last month. we're still at 720, 000 for this year for the median price in Fernie. Since 2021, the median year on year percentage increase, is at 14.42%. So as you can see, there is, some interesting things going on in the Ferny real estate market at the moment. if you're looking to buy, looking to sell, and you really want to discuss the Ferny real estate market, please feel free to reach out. My number is 778 745 0347 or hit me up on social media, send me a message and I'll be happy to help. Until next time, I'm Phil Gadd. Stay focused, stay informed and keep building that property mindset.