Latest Market Update - November 14th 2024

Are Buyers Finally Responding to Rate Cuts?

Real estate sales in Canada’s largest markets surged in October as buyers jumped at the opportunity to purchase homes following recent interest rate cuts. While this uptick is positive news for Canada’s struggling real estate market, one month of growth doesn’t establish a lasting trend. The Bank of Canada is expected to reduce rates again on December 11, just in time for the holiday season, potentially introducing a significant cut that could drive variable mortgage rates to their lowest levels in years.

Meanwhile, average rents in Canada declined for the first time since 2021. According to recent data from Rentals.ca and Urbanation:

Average monthly rents dropped by 1.2% in October 2023, now standing at $2,152.

However, record-high consumer and business insolvencies paint a concerning picture of financial strain affecting households and businesses nationwide.

This financial stress may intensify next year as economic growth slows and many mortgages are renewed at higher rates.

Mortgage rates remain competitive, with some lenders offering fixed rates as low as 4.39% and variable rates as low as 4.95%. If you need financial assistance, please don’t hesitate to reach out.

Latest Market Update - October 19th 2024

Is Now The Time To Buy Or Refinance Your Mortgage?

Mortgage rates are expected to fall again next week as the Bank of Canada is getting ready to announce rates on Oct 23 and are expected to drop the rate by 50 basis points.  This will have the biggest impact on Variable mortgage rates, and we should see these rates under 5% very soon.  

The Greater Vancouver Real Estate market has been a soft market for the past months, but this may all be changing.   Sales of Detached homes appear to be accelerating this month.  This may be the ideal opportunity for people to buy at the bottom before prices rise.    Remember; don’t wait to buy but rather buy and wait.   Fraser Valley and other areas of the Province continue to be soft, but this may also change as we get into next year.  

Did you know: BC’s Property Transfer Tax was launched in 1987 as a “luxury tax” and intended to apply to only five per cent of real estate transactions.  This tax has changed significantly over the decades and is now a viable source of Government revenue. 

The 5-year fixed rate for Insured mortgages is now being offered under 4%! . Contact Tony to learn more.

Latest Market Update - October 8th 2024

Deputy Prime Minister Announces New Actions To Build Secondary Suites And Unlock Vacant Lands

On October 8, 2024, the Deputy Prime Minister and Minister of Finance Chrystia Freeland, alongside other government officials made a number of new action announcements. These initiatives are designed to unlock underused properties and make it easier for homeowners to add secondary suites to their homes, ultimately contributing to the federal goal of building 4 million homes.

1. Mortgage Refinancing for Secondary Suites: Starting January 15, 2025, homeowners will have the opportunity to refinance their insured mortgages to finance the construction of secondary suites. Key details include:

• Access to Equity: Homeowners can access up to 90% of their home’s value, including the value added by the new secondary suite(s).

• Longer Amortization Period: The refinanced mortgage can be amortized over a period of up to 30 years.

• Increased Price Limit: The mortgage insurance home price limit will increase to $2 million for those refinancing to build a secondary suite, ensuring broader access across various housing markets.

This reform aims to promote greater housing density, support homeowners with additional rental income, and enhance community living options.

2. Consultations on Taxation of Vacant Land
The federal government is launching consultations regarding the taxation of vacant land. This initiative seeks feedback from provinces, territories, and municipalities interested in implementing their own vacant land taxes. The goal is to encourage landowners to utilize their properties effectively, ultimately leading to more housing developments.

3. Unlocking Underused Federal Properties
An additional 14 federal properties have been identified as suitable for housing development, bringing the total to 70 underused federal properties available through the Canada Public Land Bank. This initiative is part of the federal government’s commitment to unlocking land for new housing, aiming to support the construction of 250,000 new homes.

The federal government is committed to its goal of building 4 million homes by leveraging all available resources and strategies. These recent announcements represent significant steps towards maximizing land use in our communities and addressing the housing affordability crisis.

Latest Market Update - September 25th 2024

Breaking News - Mortgage Renewal Changes

Canada’s banking regulator is set to eliminate the need for the banks to apply the stress test when you are simply switching mortgage lenders at renewal.  This will be very positive for borrowers looking to obtain a better rate and payment then what is being offered by your existing lender.   Creating a more competitive environment will result in you being able to get better deal upon renewal.  

Rate Wars are starting, and lenders are offering special rates:

• 3 year fixed as low as 4.49%

• Variable rate mortgages as low as Prime – 1.05%

• 2nd mortgage rate as low as 8.90%

OPEN HOUSE:   2496 Jonquil Court, Abbotsford, on Sunday, September 29th, from 1:00 pm to 3:00 pm. 

Latest Market Update - September 16th 2024

Breaking News

The Federal Government announced that starting on Dec. 15, the cap for insured mortgages will rise to $1.5 million from the existing $1 million. This will allow buyers to qualify for larger mortgages without putting 20 percent down payment.   The government is also allowing insured mortgages up to 30-year amortization. 

Very positive news for the real estate market and the new rules will have the largest impact on homes priced between $1 and $1.5 Million.  

Did you know:

Faster, smoother travel will soon be coming to Langley, Abbotsford, and Chilliwack with the Fraser Valley corridor improvements.  

IF you have questions, I can help!
Contact Tony today