2023 Will Be A New Environment For The Real Estate Market
Recently, the Province introduced new Strata rules which prevent rental and age restrictions on all buildings (except for 55 plus age restricted strata’s) with the goal being to create more available housing. January 3 will be the start of the Home Buyer Rescission Period. This change to the Property Law Act will allow a homebuyer the right to withdraw from a purchase agreement within three business days of an offer being accepted. This will have a material change to how homes are sold and purchased. Also starting January 1, non-Canadians will be banned from buying residential property across Canada until December 31, 2024.
Since March 2nd, 2022 the Bank of Canada has steadily increased lending rates. The overnight rate currently sits at 4.25%, and the prime rate is now at 6.45%. To qualify for a mortgage the rate used is close to 8%. Next year the market will absorb the impacts of a higher rate environment and so far, the impact has been a decline in home sales and skyrocketing rental rates. For the latest real estate stats: click here
At first glance all of this may appear scary, however; inflation is already starting to moderate and is expected to fall early next year along with interest rates. Immigration to BC is surging; and there remains a strong demand for homes. Well-priced homes are selling, and buyers can now take advantage of a more balanced market.
Homebuyers continue to have choices for mortgage financing. We are seeing a surge in demand for private lending which can offer a short-term solution for raising money to either make a purchase or to cover any expenses. Don’t be stuck keeping high balances on credit cards where you can use the equity in your home to reduce your interest costs and your monthly payments. For the latest mortgage rates: click here
For many homeowners; downsizing or making a change can be challenging. Hiring the right professional can make a world of difference. Next year we are offering improved services to help with a changing market. Some of these changes will see new marketing strategies that will help expose your home more domestic and international markets; cash back to help with moving expenses, free junk removal and more. More specifics to follow in the new year.
