Second Busiest October on Record
Metro Vancouver home sales last month was the second busiest October on record. Activity since the Spring has remained at record levels.
“Home has been a focus for residents during the pandemic. With more days and evenings spent at home this year, people are re-thinking their housing situation," Colette Gerber, REBGV Chair said.
Although the number of listings is up 37% from last October they are 13% lower from last month. The inventory of homes for sale remains constrained and this combined with the increase in sales has pushed prices upwards. Since last year the benchmark price of detached homes are up 8.5% and apartment and townhomes benchmark prices up 4.4% and 5.4% respectively. In Toronto similar results have occurred and prices of detached homes have soared as homeowners are moving away from small apartment space.
It’s not just the pandemic and constrained inventory levels causing the surge in real estate. The record low interest rates are also having a huge impact. It wasn’t that long ago that a 5 year fixed rate was near 4% compared now with the rate as low as 1.80%. It’s even lower in some circumstances. The economic growth in our Country is projected to remain challenged and as a result the Bank of Canada recently announced that they expect to keep rates this low until 2023.
Need funds but the bank said no. Private first and second mortgages are easily available. You can access up to 85% of your home’s equity.