November 2021 - Latest Market Update

Housing supply continues its downward trend

Metro Vancouver’s housing market in October remained very active amongst the continued decline in the number of homes available to purchase.  This lack of supply and strong demand continues to push prices higher.      

The Real Estate Board of Greater Vancouver reports that residential home sales in the region totalled 3,494 in October 2021, a 5.2% decrease from the same month last year but increased 11% from September 2021.   

Last month’s sales were 22% above the 10-year October sales average.

The number of homes available for sale last month decreased 35% compared to the same period last year and dropped almost 13% from September 2021.  

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver increased 15% from same period last year and is currently $1,200,000, up modestly from September 2021.   

The benchmark price for a detached home increased 21% from same period last year and is $1,850,500, up modestly from September 2021.   

The benchmark price for apartments increased 10% from same period last year and is $746,400, up modestly from September 2021.    

The benchmark price for attached homes increased 19% from same period last year and is $975,000, up modestly from September 2021.    

Fixed mortgage rates are on the move up.  This was unexpected a few months ago but the recent surge in inflation has caused great concern in the cost of living.  Best 5-year fixed rates can be offered as low as 2.34% and as high as 2.59% depending on lender and product.  

Variable rate mortgages can be offered as low as 1.35%.  This offers the absolute best rate and payment, but there is now increased risk of the prime rate rising within the next six months.     

We currently have many lenders with money to lend out.  Financing highlights as follows:

• Large 1st mortgages -$1M+ 

• 2nd mortgages up to $3.5M 

• Fast closings 

• Pre-construction using current market value 

• Rural properties including acreages 

• 3 year Reverse Mortgage 

• Unique property types considered: leasehold, commercial, partial interest, bare land… 

NOTE: The low mortgage rate environment, low housing supply and the steady demand for homes should push prices higher this Winter season.

September 2021 - Latest Market Update

Housing supply is the biggest factor impacting the market

Metro Vancouver’s housing market in August remained active amongst a continued decline in the number of homes available to purchase.  This is creating a huge challenge for buyers and the trend of increasing prices continues to rise.

The Real Estate Board of Greater Vancouver reports that residential home sales in the region totalled 3,152 in August 2021, a 3.4% increase from the same month last year but decreased 5% from July 2021.

Last month’s sales were 20% above the 10-year August sales average.

The number of homes available for sale last month decreased 30% compared to the same period last year and dropped almost 9% from July 2021. 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver increased 13 percent from same period last year and is currently $1,176,600, up modestly from July 2021.   

The benchmark price for a detached home increased 20% from same period last year and is $1,807,100, up modestly from July 2021.   

The benchmark price for apartments increased 8% from same period last year and is $735,100, down slightly from July 2021.    

The benchmark price for attached homes increased 17% from same period last year and is $952,600, up slightly from July 2021.    

Mortgage rates remain stable and are expected to remain as these low levels until late in 2022.  Best 5-year fixed rates can be offered as low as 2.15%.  

Variable rate mortgages can be offered as low as 1.45%.  

We currently have many lenders with money to lend out.  Financing highlights as follows:

• Large 1st mortgages -$1M+

• 2nd mortgages up to $3.5M

• Fast closings

• Pre-construction using current market value

• Rural properties including acreages

• 3 year Reverse Mortgage

• Unique property types considered: leasehold, commercial, partial interest, bare land…

NOTE: The low mortgage rate environment, low inventory levels of properties for sale and the steady demand for homes should push prices higher this upcoming Fall season. 

August 2021 - Latest Market Update

Metro Vancouver homes sales down slightly as prices remain elevated

Metro Vancouver’s housing market saw more moderate sales, listings and pricing trends last month compared to the heightened activity experienced earlier this year. 

The Real Estate Board of Greater Vancouver reports that residential home sales in the region totalled 3,326 in July 2021, a 6.3% increase from the same month last year but decreased almost 12% from last month.  

Last month’s sales were 13% above the 10-year July sales average.

The number of homes available for sale last month decreased 26 per cent compared to the same period last year and dropped 25 per cent from June 2021. 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver increased 14 percent from same period last year and is currently $1,175,500.

The benchmark price for a detached home increased 21 per cent from same period last year and is $1,801,000.

The benchmark price for apartments increased 8 per cent from same period last year and is $737,000.    

The benchmark price for attached homes increased 17 per cent from same period last year and is $950,000. 

Mortgage rates remain stable and are expected to remain as these low levels until late in 2022.  Best 5-year fixed rates can be offered as low as 2.15%.    

Variable rate mortgages can be offered as low as 1.45%.  

We currently have many lenders with money to lend out.  Financing highlights as follows:

• Large 1st mortgages -$1M+

• 2nd mortgages up to $3.5M

• Fast closings

• Pre-construction using current market value

• Rural properties including acreages

• 3 year Reverse Mortgage

• Unique property types considered: leasehold, commercial, partial interest, bare land…

NOTE: The low mortgage rate environment, low inventory levels of properties for sale and the steady demand for homes should push prices higher this upcoming Fall season. 

April 2021 - Latest Market Update

The local Real Estate market is on a blistering pace and new changes coming to the Mortgage Stress test

“The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 5,708 in March 2021, a 126.1 per cent increase from the 2,524 sales recorded in March 2020, and a 53.2 per cent increase from the 3,727 homes sold in February 2021.” 

It’s not just a Vancouver thing.  Victoria, Whistler, Toronto, Calgary and more are all recording record increases in sales and home prices. 

“In March, residents bought and listed homes across our region at levels not seen before,” Taylor Biggar, REBGV Chair said. “This surge in activity is increasing upward pressure on prices. We’re beginning to see double-digit price gains for single-family homes and townhomes over the last 12 months.” 

These stats have gotten the attention of our Governments and economists.  The bank of Canada has recently issued a warning and has stated their concerns that Canadians may be taking on too much debt to buy Canadian real estate.  They are concerned about whether these price increases are sustainable.  However; these warnings are from Governments that have inflated debt to levels not ever seen before.  It’s hard to take it their concerns too serious, especially when the cost of construction of new homes is reaching record highs.  

Here in Southern BC, we have heard these concerns and warning many times in the past few decades.  The bottom line is that land, lumber and materials are all limited.  We live in one of the best places in the world and certainly the best place in Canada.  Basic economics of supply and demand would suggest you buy real estate sooner than later.   

Mortgage rates have risen from their record lows over the past few months.  They continue to be very attractive though.  A five year fixed can still be offered under 2% and variable rates near 1%.   Be cautious when it comes to mortgage rates.  As our economy rolls out of this pandemic, the mortgage rate may continue to rise further.  More importantly; The Office of the Superintendent of Financial Institutions is making a change to the stress test rate.  It means the rate used will be higher than the rate used currently making it harder to qualify for a prime rate mortgage.  This is to be effective as of June1, 2021.   Act now to refinance.   Send me an email if you have any questions or want to get a refinance started. 

February 2021 - Latest Market Update

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%