Mortgage rates are down and the Real Estate market improves.
Mortgage rates have dropped 30% since the beginning of the year and this has made it much cheaper to own and qualify for prime rate mortgage. The expectation is that rates should remain low and possibly drop lower before the end of the year if economic conditions do not improve. Economic growth is constrained in most major economies of the world and there is a fear that another Global recession is on horizon. The global trade issues and Brexit are some of the major culprits affecting growth. The drop in rates so far have been restricted to the fixed rates but if a recession occurs the prime lending rate will also likely drop improving the cost of variable rate mortgages. Currently 5 year fixed rates can be offered as low as 2.69% and variable rates as low as 2.95%. Need a rate hold: click here
The Real Estate market has also improved since the beginning of the year. “Home buyer demand has returned to more historically typical levels in Metro Vancouver over the last three months”.
Some of the latest stats for September 2019 versus September 2018 are as follows:
Sales were up 46%
Detached sales were up 47% and the benchmark price was down 9%
Condo sales were up 44% and the benchmark price was down 7%
Number of homes listed for sale increased 3%
Benchmark price for all residential homes is $991k (7% decrease)
The improved real estate stats are not reflective in the luxury market ($ 3 million plus) as the results for this segment are much more subdued. Affordability continues to be the primary concern and the falling mortgage rates have certainly helped. The new federal government’s first time home buyers program has also helped affordability in many Canadian markets but not for Metro Vancouver as the average prices of all types of homes here are well above the programs threshold. Have questions about the Governments program: click here
Did you know?
The average population growth of Lower Mainland is near 2.5%.
Langley, BC has the greatest numbers of realtors per capita : 1 realtor for every 6 people
Halifax, NS has the least number of realtors per capita: 1 realtor for every 894 people
Lions Bay, BC is exempt from the speculation tax