Vancouver Home Sales Stay Robust
Greater Vancouver home sales ended 2019 with a whopping 88% increase in December over same month in 2018. Most notable is apartment sales which increased almost 100%. Inventory levels across all property types are decreasing and are at the lowest level not seen in many months. As an example in Richmond there were 1300 apartments for sale last September compared to the 760 currently listed for sale. The benchmark price for detached homes is $1,423,500 and $656,700 for apartments. Experts expect home prices and sales to trend higher throughout 2020. The reduced level of inventory and increasing demand will create challenges to those buyers looking to get into the market. The timing for sellers of course couldn’t be better. In Toronto home sales decreased a modest 3% last month but the prices still pushed higher and are up 7.3% year over year.
For the the lastest stats for Greater Vancouver: click here
“Owning a home is a keystone of wealth….both financial affluence and emotional security.” Suze Orman
Mortgage rates have not been as exhilarating and they have increased modestly over the past month. There’s a strong correlation to rates and market activity. If the trend for higher rates continues we could see real estate sales moderate; but at this time it’s not expected. In fact we may see our Government ease the mortgage lending criteria and make it easier for first time buyers and borrowers to obtain a prime rate mortgage. Private lending has also been very robust and we have seen new lenders enter the market. Many private lenders are offering first mortgage rates under 6% and continue to make it very easy to access the funds you need. Often second mortgages can allow you to access up to 85% of your home’s equity with rates under 12%.
Best prime rates remain very attractive. High ratio (insured) mortgages offer a 5 year fixed as low at 2.74%%. Uninsured mortgage rates are being offered between 2.89% and 3.09%.
“Ninety percent of all millionaires become so through owning real estate.” Andrew Carnegie