Vancouver’s Real Estate Market Remains Resilient During COVID19
Sales of homes in metro Vancouver decreased 44% from the same period as last year but saw a rise of 34% from April. The impact on sales from Covid19 may have been temporary and it appears that buyers and sellers are adjusting to become more comfortable operating during this pandemic. Although one month doesn’t make a trend our efforts here in BC to control the virus seems to have worked. Inventory levels continue to be below the seasonal averages and currently the total amount of homes listed for sale in metro Vancouver is 32% lower than the same period as last year and have risen only modestly from April. Benchmark prices have been stable with a modest increase over last year. For a detached home the benchmark price is $1,456,700. For condos and townhomes they are $686,500 and $792,700 respectively.
The real estate market may be recovering quickly but the economic impact to businesses may not be so lucky. Economic growth has been impacted significantly and most major economies have begun contracting and will likely be headed or are already in a recession. Mortgage rates have dropped further since last reporting and 5 year fixed rates hoover around 2.50%. Lower in some cases depending on the nature of the deal and the lender. The Bank of Canada has also reduced the qualifying rate used for the stress test and now stands at 4.94%. Borrowers that have an existing variable rate mortgage have seen the greatest benefit and the current rate for many of these customers are below 2%. New Variable rate mortgages are being offered as low as 2.25%. The recessionary pressures on our economies will very likely keep interest rates very low. The big question is how long these low rates will last. Our economies may be as resilient as our real estate prices and things may roar back quicker than anticipated. Don’t wait to consider that refinance or a real estate purchase. Things often change quickly. “The best time to buy a home is always five years ago.” Ray Brown
Don’t stress if the bank says no to your mortgage request as there are other options. My alternative lenders have been very busy during these times and offer very easy approvals without the rigorous assessment of your income and other assets. First mortgage rates can be available as low as 5.99% and second mortgages as low as 8.99%.
Selling your home; here’s a tip:
It has been said that buyers decide in less than ten seconds of walking into a home if they are interested in buying it? When a buyer walks into your home, what they see matters. Don’t miss the opportunity to make a good impression.