2020 Is On A Roaring Start
“The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 1,571 in January 2020, a 42.4 per cent increase from the 1,103 sales recorded in January 2019…”
The amount of inventory across Lower Mainland has begun to rise from the lows we seen in December 2019 but the supply continues to remain below the normal seasonal amounts and the total amount of homes listed for sale is 20% less than same period last year. Prices have held up reasonably well coming off a challenging 2019 and the benchmark price for all residential properties sits at just over $1million a modest 1.2% decline from the same period last year.
The story is similar in Toronto where the inventory of homes for sale is 17% lower from the same period last year. Home prices have risen much stronger there and they are up 9% from last year. The price rise is being fueled by strong demand, decreasing inventory and cheap money.
It’s hard to say if this trend will continue throughout the year and as we move closer to the more active Spring market I will continue to monitor the supply to see if it keeps up to the demand. My personal opinion is as much as government policies may affect short term market conditions, real estate over the long term will continue to rise in price. Factors such as the cost of construction, population and employment growth and limited available land, especially in Great Vancouver; will continue to make home ownership more expensive.
There is very little to report on mortgage lending. Rates have only moved modestly lower and there is no expectation that we will see them rise. Economic conditions may deteriorate later this year allowing the Bank of Canada to ease rates, but we have seen unexpected surprises from the economy over the past few years so nothing is assured. As local real estate prices stabilize and begin to rise, it’s a great time to consider refinancing. For whatever the purpose, whether to maximize RSP contributions, pay taxes or for home improvements; I’m a click away. Some lenders are offering attractive incentives to move your mortgage to them. Whether it’s cash back to cover expenses or to discount the rate; it’s a good time to contact me to see what’s available. Never be stuck for money as there is usually a solution and I’m great a providing solutions.
Happy Valentine ’s Day and happy Family day. Take a moment and do something special this weekend.
“Loving someone and having them love you back is the most precious thing in the world.” Nicholas Sparks