January 23rd, 2020 - Latest Market Update

Rates Remain Unchanged

The Bank of Canada left its rate unchanged this week and noted that the Global economy is stabilizing and they expect our Economic conditions to improve throughout the balance of the year.  They are also predicting our population and wages to grow significantly boosting consumer spending. This is good news for the real estate market as it should help improve demand and prices.   Many mortgage lenders continue to offer fixed rates under 3% and these rates are also expected to be stable throughout the year. Buyers should note these conditions and consider buying sooner than later.  

“Do not wait to strike till the iron is hot; but make it hot by striking.” 
William Butler Yeats

Got a mortgage renewing soon?  Don’t jump at the first thing the bank offers you.  If I can’t help you move to a better deal and lender, I can at least help you achieve a better rate where your mortgage is now.   Click here to contact me for your best rate.

Obtaining a prime rate mortgage today for a home purchase can be challenging but nothing will kill your home ownership dreams more than a car loan or lease.   Loans and leases for vehicles can appear attractive and are easy to obtain, but they will have a huge impact on the amount of mortgage that borrowers can qualify for.  It’s often much better to wait until your mortgage is completed before jumping into a new vehicle loan.   

A recent BC Notaries Foundation reported that 90% of first time homebuyers get help from their parents.  Primarily this is in the form of helping them with the down payment.  But it’s not just mom and dad that can help.  The Government introduced a new First Time Buyers program last year and although it comes with many rules and restrictions, it can still help reduce the cost of buying a home and help increase your down payment.   If you are considering making a purchase it may be worthwhile to consider it.  Click here for information, or if you have more questions click here to contact me.

Real estate inventory levels are beginning to rise and much of this is seasonal adjustments.   Many homeowners consider the spring time to list their home for sale but you may not need to wait.  Inventory levels are currently at a low level throughout Greater Vancouver and when there’s less homes for sale to compete with it’s usually a good time to consider selling. 

The weather so far this month across all of Canada has been harsh.  At this time it looks like it may have slowed down the rapid pace of sales and I will share the real impact in a few weeks. Stay tuned.

“Good, better, best.  Never let it rest. ‘Til your good is better and your better is best. “
St. Jerome

Have questions about Mortgages or Real Estate? email Tony at: tony@tonyiannetti.ca

January 2020 - Latest Market Update

Vancouver Home Sales Stay Robust

Greater Vancouver home sales ended 2019 with a whopping 88% increase in December over same month in 2018.  Most notable is apartment sales which increased almost 100%.  Inventory levels across all property types are decreasing and are at the lowest level not seen in many months.  As an example in Richmond there were 1300 apartments for sale last September compared to the 760 currently listed for sale.  The benchmark price for detached homes is $1,423,500 and $656,700 for apartments.  Experts expect home prices and sales to trend higher throughout 2020.  The reduced level of inventory and increasing demand will create challenges to those buyers looking to get into the market.   The timing for sellers of course couldn’t be better.  In Toronto home sales decreased a modest 3% last month but the prices still pushed higher and are up 7.3% year over year. 

For the the lastest stats for Greater Vancouver: click here

“Owning a home is a keystone of wealth….both financial affluence and emotional security.”  Suze Orman

Mortgage rates have not been as exhilarating and they have increased modestly over the past month.  There’s a strong correlation to rates and market activity.  If the trend for higher rates continues we could see real estate sales moderate; but at this time it’s not expected.  In fact we may see our Government ease the mortgage lending criteria and make it easier for first time buyers and borrowers to obtain a prime rate mortgage.  Private lending has also been very robust and we have seen new lenders enter the market. Many private lenders are offering first mortgage rates under 6% and continue to make it very easy to access the funds you need.  Often second mortgages can allow you to access up to 85% of your home’s equity with rates under 12%. 

Best prime rates remain very attractive. High ratio (insured) mortgages offer a 5 year fixed as low at 2.74%%.  Uninsured mortgage rates are being offered between 2.89% and 3.09%. 

“Ninety percent of all millionaires become so through owning real estate.”  Andrew Carnegie

December 2019 - Latest Market Update

Vancouver Home Sales Rebound

Vancouver home sales appear to have turned a corner. Home sales last month in metro Vancouver jumped 55% compared to the same period last year pulling prices upwards. Improving market conditions has been the trend since the summer. This trend is predicted to continue into the New Year as inventory levels throughout the entire Lower Mainland shrink. It’s not just Vancouver experiencing strong sales. Canada’s largest city saw their housing prices rise at the fastest pace in the last two years. Although market conditions may have turned a corner, homeowners should not be surprised to see the assessed values of their homes fall from the previous year.

The Bank of Canada held their interest rate yet again last week and the rate has not changed for some time. It is the highest rate since December 2008. Many economists believe that the rate will likely drop in the New Year as economic growth will moderate especially given last month’s job report which seen a huge loss of over 71,000 jobs. This is the second month in a row of job losses and the unemployment rate has risen to 6%. The Bank of Canada will also be looking to replace the current Governor. Steve Poloz will be stepping down by the New Year and hopefully replaced with someone skilled in dealing with the new economic realities facing our country and the world.

Although fixed term mortgage rates have not changed much recently, they remain much lower than how they ended last year. High ratio (insured) mortgages offer a 5 year fixed as low at 2.49%. Uninsured mortgage rates are being offered between 2.69% and 3.09%.

Next year should be a very exciting time for both real estate and mortgage lending. “Don’t wait to buy real estate, buy real estate and wait.”

Happy Holidays and the absolute best of the new year to all my clients.

“The holiday season is a perfect time to reflect on our blessings and seek out ways to make life better for those around us.” Terri Marshall

October 2019 - Latest Market Update

Mortgage rates are down and the Real Estate market improves.

Mortgage rates have dropped 30% since the beginning of the year and this has made it much cheaper to own and qualify for prime rate mortgage.   The expectation is that rates should remain low and possibly drop lower before the end of the year if economic conditions do not improve.  Economic growth is constrained in most major economies of the world and there is a fear that another Global recession is on horizon.  The global trade issues and Brexit are some of the major culprits affecting growth.  The drop in rates so far have been restricted to the fixed rates but if a recession occurs the prime lending rate will also likely drop improving the cost of variable rate mortgages.   Currently 5 year fixed rates can be offered as low as 2.69% and variable rates as low as 2.95%.  Need a rate hold:  click here

The Real Estate market has also improved since the beginning of the year. “Home buyer demand has returned to more historically typical levels in Metro Vancouver over the last three months”. 

Some of the latest stats for September 2019 versus September 2018 are as follows:

• Sales were up 46%

• Detached sales were up 47% and the benchmark price was down 9%

• Condo sales were up 44% and the benchmark price was down 7%

• Number of homes listed for sale increased 3%

• Benchmark price for all residential homes is $991k (7% decrease)

The improved real estate stats are not reflective in the luxury market ($ 3 million plus) as the results for this segment are much more subdued.  Affordability continues to be the primary concern and the falling mortgage rates have certainly helped.  The new federal government’s first time home buyers program has also helped affordability in many Canadian markets but not for Metro Vancouver as the average prices of all types of homes here are well above the programs threshold.  Have questions about the Governments program:  click here

Did you know?

• The average population growth of Lower Mainland is near 2.5%.

• Langley, BC has the greatest numbers of realtors per capita : 1 realtor for every 6 people

• Halifax, NS has the least number of realtors per capita:  1 realtor for every 894 people

• Lions Bay, BC is exempt from the speculation tax

July 2019 - Latest Market Update

Mortgage rates are down and the local real estate market takes another hit.

We are passing the mid-point of the year most homeowners at this point are very aware of the down turn we are experiencing in the local real estate market.   Inventory has climbed and sales have fallen.   Property values are headed down and as much as some would call it a balanced market, it’s more of a buyers’ market.  Of course, there are few exceptions to this. Vancouver area homes sales posted their weakest June in almost twenty years. “We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said Ashley Smith, REBGV president. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.”  To take a closer look at the stats, click here

Selling property in this market is challenging and requires a skillful realtor.   Hard work often pays off, but in these conditions; it’s more about price and affordability.  Buyers are taking advantage of these conditions and ‘low ball offers’ are becoming the norm.   Sellers should prepare themselves and understand that it will likely take additional time to sell their home.  When it comes to selling successfully there are few things that can help in delivering great results. Click here to ask me.

Mortgage lending conditions are not much better. The good news is that interest rates have fallen since the beginning of the year and 5 year fixed is now as low as 2.74%. Most economists think fixed rates should hold steady and that we should see the prime lending rate move lower later this year.  Borrowers looking to access these cheap rates should ensure they have all income taxes up to date and if you are self-employed ensure you have updated financial statements.   This will help get you the answer you need quickly.   Alternatively, if you need funds quickly and cannot meet the stringent lending criteria; then there are lots options but it comes at a higher cost. 

Mortgage rates: (certain conditions apply):

• Best 5 year fixed:  2.74% - insured

• Best 5 year fixed: 2.79% - uninsured

• Best Variable: Prime – 1%

• Best 10 year fixed: 3.44%