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.