The real estate market is looking a lot like 2016
The local Real Estate market had ended 2020 on a blistering pace and this momentum has not changed as the 2021 season gets underway.
“The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,389 in January 2021, a 52.1 per cent increase from the 1,571 sales recorded in January 2020, and a 22.8 per cent decrease from the 3,093 homes sold in December 2020.”
Many segments of the market are doing well but in particular the detached home sales have boomed. Last month’s sales increased almost 70% over the same period last year. Prices are rising fast and many homes are selling with multiple offers. BC’s home sales were up 20% in 2020 and the BC Real Estate Association has forecasted sales to increase almost 16% this year over last year.
“A strong economic recovery and record-low mortgage rates will continue to drive strong demand this year.” Brendon Ogmundson, BCREA Chief Economist.
Mortgage rates have remained at their historical lows and a 5 year fixed can be offered as low as 1.69% and variable rates as low as 1.45%. These conditions are great if you are considering refinancing your mortgage or if you are selling a home. How long will these conditions last is the big question. Often during these times we assume that rising home values and falling/low interest rates will be the norm but as history has shown us; things can change quickly. It’s very important not to be complacent during these times. Some economists have even expressed their concerns that interest rates will rise quicker than earlier predicted due to a stronger recovery from the pandemic. Although the Bank of Canada said it wasn’t planning to increase rates this year, it doesn’t mean they won’t. Take advantage of these low rates now and lock into a fixed rate before it’s too late.
Did you know: You can get a 20 year fixed rate mortgage in Denmark for 0%