We sat down with Surrey realtor EJ Bugayong to talk about his 2020 forecast for Surrey and the surrounding areas, and to get a deeper understanding on what caused such a shortage of supply in mid to late 2019.
1. What are your forecasts for the next 6 months, 12 months and 5 years in your area?
6 months - busy spring market with low inventory, especially in the condo and townhouse market, as well as houses under 850k with a basement suite
12 months - continued lower inventory. buyers are out buying but sellers are hesitant to go on the market since 2019 wasn't the greatest year for sellers and sellers focusing on the drop in their property assessments versus the actual recent sales. 3 to 4% price increase for condos, townhouses and entry level houses.
5 years - continued growth in surrey due to continued migration of young families looking to get more bang for their buck compared to Vancouver. Increased development surrounding skytrain station stops next to Surrey Langley Skytrain station project. Surrey's skytrain extension is long overdue so better transit will make Surrey even more appealing for buyers.
2. What do you think will be the best investment for home buyers within the following segments- townhomes, homes, condos, apartments?
Houses with suites - Cloverdale and Clayton Heights. Many young families over here. Entry level houses.
Townhouses - Fleetwood, Cloverdale, and Clayton Heights. Great neighbourhoods. Canopy Development in Fleetwood = new development, 642 acres of greenspace
apartments - for investors Surrey Centre is the way to go. Strong economic fundamentals and is constantly changing.
3. What developments are happening in your area that are important for the long term potential?
Surrey Centre. Proposed skytrain. Surrey Centre all the way to Langley City. Areas surrounding the skytrain station stops will see huge redevelopment for apartments and commercial buildings.
New jobs, new employment,
Doctors, nurses, spike in rent, rent 1 to 2 year while they find a place
Families like to live or move closer to the hospital
Retirement living tends to happen nearby
4. What is the biggest negative or worry for your area with regards to investment vulnerability?
Although the market is recovering there is still fear of overbuilding and the market crashing. Buyers andinvestors like to buy when the market is low but it is difficult to tell when the bottom of the market is. No one likes to overpay but at the same time they don't want to lose out.