July 2022 - Latest Market Update

It’s All About Inflation

Everyone at this point has heard about the rising costs of goods and services including the rise in mortgage and interest rates.   And it’s just not a Canada thing.  We have not been threatened by inflation in many decades, and for many young adults, this is all a new world.   Governments have been obsessed with controlling inflation because it can be very destructive.  

Mortgage rates have nearly doubled since last year.  This is an alarming increase in such a short period of time.   It’s very hard to predict what the lending environment will be next year or five years from now, but this inflationary pressure may stay around longer than we hope.     

Everyone’s situation is different and there is no one answer for everyone. Here are some of my recommendations:

Mortgage lending:

• Consider the mortgage features as much as the rate.  Flexibility to stagger terms, pre-payment privileges and other such features like convertibility options become very important. 

• Consider other fixed terms rather than the popular 5-year term.

• Take advantage of b-weekly payments and other pre-payment privileges.  Little things can make a huge difference in paying down your balance. 

• Consider mainstream lenders such as a major Financial Institution.  Often, they are in a better position to help clients when needed. 

• Do not carry credit card or expensive debt.  Convert these debts into your mortgage now while home prices are high and before it becomes harder to qualify. 

Real Estate:

• If possible, delay listing your home to sell.  Sales have dropped significantly over the past few months and prices, as much as they lag; have already begun to soften.  

• If you must list your home for sale do so with a solid plan and strategy and make sure it’s followed. Consider what other homes you may be competing with in your neighborhood.

• A great visual appearance has always been important, but it’s even more so now.  And not just inside of the home.  The outside appearance your home is the first impression for a buyer when they visit. 

• Buyers should take advantage of softening conditions and jump into the market.  When the market softens, it’s common to believe it’s going to soften forever but history tells us differently. 

• Offers no longer need to be ‘condition free’ and buyers can spend more time on due diligence and satisfying their purchasing decision.  Remember, don’t wait to buy real estate, but buy and wait.  

Many households will be challenged during these Inflationary periods. 

“Control your expenses and prioritize improving your savings.  Have confidence in our Real Estate market but be cautious.”

April 2022 - Latest Market Update

It’s All About Inflation

Are the days of cheap money and deflation over? Interest rates continue to rise and are much higher than they were this time last year. Canada and many other countries are experiencing a concerning inflation trend. Housing, food, gas and much more have been rising steady and in some cases are becoming a real concern. At the last measure the inflation rate was at 5.7%; a rate not seen in 30 years.

Consumer debt has been recently reported at $2.8 trillion with 70% of this debt held as a mortgage. Increases in the interest rate not only increases the borrowing costs for many Canadians but can lead to changes in spending habits. I’ve seen reports showing that 75% and more of Canadians are spending less on such things as household items, dining out and buying less expensive groceries.

Decreased consumer spending can often curtail inflation, however; the inflation is being caused by such things we cannot control. (of course, this begs the question of why is the Bank of Canada increasing rates to try and control something they can’t?) Supply disruptions, employment behaviors and war are outside of our control and can all be very inflationary. Increases to interest rates (and taxes) will only add to these pressures.

Mortgage rates are surging higher.

I strongly recommend anyone considering a refinance to consider it now and not wait especially if you have other debts to consolidate. It may also be the time to consider converting a variable rate mortgage to a fixed rate. Mortgage rates are expected to rise significantly this year. The good news is this should reduce the impact of penalties charged by lenders to refinance or a full payout.

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Special Announcement

It is with great pride and honour to announce two new alliances with two very successful professionals.

Bill Parsons (Formally a REMAX hall of fame recipient) is one of the most successful and experienced realtors in BC. Bill Parsons and I will be working together to help clients with their real estate goals. I’ve known Parsons for almost twenty years and I’m confident that his forty-two years of experience and success will allow me to exceed clients’ expectations and continue to deliver great results.

Rebecca Harrap (Mortgage Professional with Verico) is also one of the most knowledgeable and experienced mortgage brokers in Lower Mainland. My alliance with Rebecca will allow me to continue to provide mortgage and financing solutions to clients. Whether it’s accessing private financing or battling with the big banks, we now have better and more options for borrowers.

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The latest real estate stats are out and prices continue to climb higher ……click her for latest report: Download the March 2022 stats package.

The BC Government is now set to amend the Property Law Act to allow a ‘Cooling off’ period allowing buyers to backout of a purchase contract. Only a few details are known at this time but more on this will be available in the coming weeks. The new law may have unintended consequences that may affect all parties to a real estate transaction; however, it looks like more of an impact to sellers than buyers.

This new law may not do anything to increase inventory levels or stop the increase in housing prices, but there will be more to report on this as we move into the Spring market.

Fixed mortgage rates are much higher than they were just a year ago. Fixed rates have basically doubled from the lows of 2020. Currently 5-year fixed rates can be offered as low as 3.59% and as high as 3.89% depending on lender and product. Variable rate mortgages can be offered as low as 2%.

January 2022 - Latest Market Update

2022 Will Be The Year of UP

BC tax Assessments are out in the mail and are available online.   I think most homeowners will be quite surprised by the increase in their tax assessed values. Some homes have increased up to 35% over last year and most are seeing nothing less than double digit increases.  

Metro Vancouver’s housing market remained very active again for the last month of 2021.  We are nearing record low levels of housing supply, and this is pushing prices way up.  It’s not just pent-up demand and low inventory causing prices to rise, but the cost of construction materials and labour have also risen substantially.     

Inflation is expected to remain elevated for the first half of 2022 and the recent spike in COVID cases and severe weather will likely cause inflation to continue its upward trend.

The Real Estate Board of Greater Vancouver reports that residential home sales in the region totalled 2,688 in December 2021, a 13% decrease from the same month last year and decreased 22% from November 2021.  

Last month’s sales were 33% above the 10-year December’s sales average.

The number of homes available for sale last month decreased 19% compared to the same period last year and dropped almost 51% from November 2021. 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver increased 17% from same period last year and is currently $1,230,200.

The benchmark price for a detached home increased 22% from same period last year and is $1,910,200, up 2% from November 2021.   

The benchmark price for apartments increased 13% from same period last year and is $761,800 up modestly from November 2021.    

The benchmark price for attached homes increased 22% from same period last year and is $1,004,900, up modestly from November 2021.    

Fixed mortgage rates are much higher than they were just a year ago. Fixed rates are up at least 50% from last year.It is expected that fixed mortgage rates will rise this year; how much; hard to say, but I believe we may see most terms in the 3% range.  The biggest move may be with Variable rate mortgages. The Prime rate is not expected to remain at its historical low level and should increase by at least 30% this year.

Currently 5-year fixed rates can be offered as low as 2.59% and as high as 2.89% depending on lender and product.  Variable rate mortgages can be offered as low as 1.35%. 

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. 

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%

Say good bye to 2020

This year is concluding with mortgage rates at record lows and our local real estate market accelerating to new highs.   This trend is expected to continue well into 2021 and I’m committed to keeping you regularly updated throughout the year. It should be an exciting year and I look forward to helping you all save money and reach your real estate goals.  Whether it’s selling, buying or financing; I’ll be there to help and give you my 100%.

 “Sometimes, a flame can be utterly extinguished.  Sometimes, a flame can shrink and waver, but sometimes a flame refuses to go out.  It flares up from the faintest ember to illuminate the darkness, to burn in spite of overwhelming odds.”  Karen Hesse

I wish all of you a very special Holiday season and the very best for the upcoming New Year.

November 2020 - Latest Market Update

Second Busiest October on Record

Metro Vancouver home sales last month was the second busiest October on record.  Activity since the Spring has remained at record levels.  

“Home has been a focus for residents during the pandemic. With more days and evenings spent at home this year, people are re-thinking their housing situation," Colette Gerber, REBGV Chair said. 

Although the number of listings is up 37% from last October they are 13% lower from last month.   The inventory of homes for sale remains constrained and this combined with the increase in sales has pushed prices upwards.  Since last year the benchmark price of detached homes are up 8.5% and apartment and townhomes benchmark prices up 4.4% and 5.4% respectively.  In Toronto similar results have occurred and prices of detached homes have soared as homeowners are moving away from small apartment space.   

It’s not just the pandemic and constrained inventory levels causing the surge in real estate.  The record low interest rates are also having a huge impact.  It wasn’t that long ago that a 5 year fixed rate was near 4% compared now with the rate as low as 1.80%.  It’s even lower in some circumstances.  The economic growth in our Country is projected to remain challenged and as a result the Bank of Canada recently announced that they expect to keep rates this low until 2023.  

Need funds but the bank said no.  Private first and second mortgages are easily available.   You can access up to 85% of your home’s equity. 

September 2020 - Latest Market Update

Mortgage Rates Fall To Record Lows

Mortgage rates continue to fall and have now reached new record lows.  Five year fixed rates are as low as 1.73% for insured deals and 1.81% for uninsured deals.  Variable rates are also under 2%.  Last Wednesday the Bank of Canada made it clear that they intend to keep rates are low as necessary to help the Canadian economy recover from the impact of Covid19.   There has not been a better time in decades to consider re-negotiating your mortgage.  Although qualifying is not the easiest the opportunity to lock into a fantastic deal is worth the effort. 

Mortgage rates are not the only thing on fire these days.  The real estate market continues to accelerate with increased sales and higher prices but that being said this is primarily being experienced in the detached home market.  Detached homes across lower mainland listed under $2million are selling fast and in many cases with multiple bidders.  Greater Vancouver saw the second best July on record and August wasn’t much different.   If you need to sell the timing is great.  Price your home smartly and it will sell fast.  

Not everything is so rosy.  Certain market segments have not done so well.  Condo re- sales are moderate and pre-sales are down significantly this year.  This moderation has also pushed down rental rates and increased vacancies.  This may be a temporary trend until we see the employment and our economy recover from the impact of the pandemic.  Conditions can change quickly and I recommend to all my clients to review your financial well-being before these opportunities evaporate. 

Need funds but the bank said no.  Private first and second mortgages are easily available.   You can access up to 85% of your home’s equity. 

July 2020 - Latest Market Update

Mortgage Rates Pushing Record Lows

The effects of the pandemic have sent mortgage rates down and are nearing record low levels. Five year fixed rates are just above 2% and variables are being offered under 2%. These are rates I haven’t seen in a very long time.  On Wednesday the bank of Canada kept the overnight lending rate at 0.25% and noted that the economic outlook in Canada is uncertain if not bleak.   There has been improvement here and around the world but this will not be enough to prevent an estimated 8% contraction in Canada this year. This will likely extend the period of low interest rates which are not expected to rise until the middle of 2021. We have already been experiencing a rebound in the local real estate but these low rates should provide a further boost to our Housing market.  This of course doesn’t mean getting a fully discounted mortgage is easy.  The lending criteria for a prime rate deal continue to be very tight and banks are often looking for reasons not to lend.  Although banks have touted how they have helped consumers by providing clients the option to defer their payments, they failed to inform the borrowers that deferrals can prevent you getting an approval for a refinance.  Good thing that not all banks are the same.  Some lenders are not penalizing clients for deferring their mortgage payments and many borrowers are having success accessing cheap money.  Don’t wait to consider a refinance.  It’s an opportune time to review your financial situation and save money.  

We make it easy for borrowers.  You can apply online with an easy one page application; supporting documentation can be emailed, you can sign your paperwork electronically and the lawyers I work with can sign you up over Zoom!   You don’t ever need to leave the comfort of your home to get a mortgage.  NOW that’s convenience.  

Find my easy application here: click here

June 2020 - Latest Market Update

Vancouver’s Real Estate Market Remains Resilient During COVID19

Sales of homes in metro Vancouver decreased 44% from the same period as last year but saw a rise of 34% from April.  The impact on sales from Covid19 may have been temporary and it appears that buyers and sellers are adjusting to become more comfortable operating during this pandemic. Although one month doesn’t make a trend our efforts here in BC to control the virus seems to have worked.  Inventory levels continue to be below the seasonal averages and currently the total amount of homes listed for sale in metro Vancouver is 32% lower than the same period as last year and have risen only modestly from April.   Benchmark prices have been stable with a modest increase over last year.  For a detached home the benchmark price is $1,456,700.  For condos and townhomes they are $686,500 and $792,700 respectively.

The real estate market may be recovering quickly but the economic impact to businesses may not be so lucky.  Economic growth has been impacted significantly and most major economies have begun contracting and will likely be headed or are already in a recession.  Mortgage rates have dropped further since last reporting and 5 year fixed rates hoover around 2.50%.  Lower in some cases depending on the nature of the deal and the lender.  The Bank of Canada has also reduced the qualifying rate used for the stress test and now stands at 4.94%.  Borrowers that have an existing variable rate mortgage have seen the greatest benefit and the current rate for many of these customers are below 2%.  New Variable rate mortgages are being offered as low as 2.25%. The recessionary pressures on our economies will very likely keep interest rates very low.  The big question is how long these low rates will last.  Our economies may be as resilient as our real estate prices and things may roar back quicker than anticipated.  Don’t wait to consider that refinance or a real estate purchase.  Things often change quickly.  “The best time to buy a home is always five years ago.” Ray Brown

Don’t stress if the bank says no to your mortgage request as there are other options.  My alternative lenders have been very busy during these times and offer very easy approvals without the rigorous assessment of your income and other assets.  First mortgage rates can be available as low as 5.99% and second mortgages as low as 8.99%. 

Selling your home; here’s a tip:

It has been said that buyers decide in less than ten seconds of walking into a home if they are interested in buying it?   When a buyer walks into your home, what they see matters.  Don’t miss the opportunity to make a good impression. 

May 2020 - Latest Market Update

The Impact of COVID-19 on Vancouver’s Real Estate Market

Residential home sales in Greater Vancouver experienced a 40% decline last month for same period last year and a 56% decline from the previous month.  April’s sales were a staggering 63% fall from the 10 year April sales average and it was the worst April since 1982.  Inventory levels continue to be constrained and were 35% lower than the same period last year. 

Normally this decline in activity would put significant downward pressure on prices but given the decline in the inventory and the low interest rates home prices have remained stable.  

Toronto’s April stats were even worse than Vancouver.   Sales and listings there fell 70% and 64% respectively.  Similar results were experienced in both Edmonton and Calgary. 

The impact from COVID-19 on Real Estate was expected and many economists believe the real estate market will roar back before the end of this year.  The overall economic impact of COVID-19 will be very significant.  Nearly three quarters of all businesses have had a significant impact to their revenue and many businesses will not be able to maintain their services.  It’s too early to know the full extent of the impact but it’s expected that many businesses will not be the same when things return to normal.  

Mortgage rates have pushed lower, but only very modestly.   Variable rate mortgages are as low as 2.25% and 5 year fixed as low as 2.54%.  Banks are currently being very cautious with mortgage lending as they adjust to the new economic environment.  Borrowers should ensure their 2019 taxes are filed and have all supporting documents available before applying.  On the private lending side many lenders have backed off and are not near as aggressive as they were a few months ago.  That being said, I still have plenty of lenders that are able to accommodate most loan requests. 

Did you know:  Zoom has boomed! It has increased its number of users by 290 million within only the last 5 months.   

April 2020 - Latest Market Update

Challenges Ahead - Here’s The Latest

Home buyer demand continued to outpace supply up until halfway into March and then levelled off significantly since then.   Inventory levels were and continue to be below the seasonal averages and home prices were on a steady rise.  The impact on the demand from the COVID-19 was not a surprise but the bigger question now is what we can expect to experience in the coming months. The improvement in the number of virus cases being reported in BC and the so called flattening of the curve should help minimize the impact to the real estate market.  I suspect prices will be resilient to any downward pressure. 

The prime lending rate has fallen nearly 40% (1.5%) in the past month and currently stands at 2.45%.   Fixed rates did fall significantly too but banks quickly adjusted these rates along with the spreads on variable rate mortgages.  Fixed rates are now higher by nearly 30% and for the most part are being offered around 3%.  Variable rate mortgages that were being offered as low as Prime -1% are now as high as Prime +0.20%.  It has been reported that banks adjusted the rates as such to reflect higher risk in real estate lending as a result of the COVID-19.  That being said, every major nation in the world will be challenged to stimulate their economies and there is little doubt that low rates will be required to help us recover from what is expected to be the worst recession ever faced by the world. 

Latest stats for March 2020:

• Consumer prices fell 0.40%.  The largest decline in over 5 years.

• Inflation cooled to 1.5% y/y.

• GDP fell 9%. The largest drop ever recorded.

• Canadian employment plummeted and the unemployment rate is nearly 8%.

• BC lost 132,000 jobs and the unemployment rate is just over 7%.

• Canadian housing starts decreased over 7%.

• Home sales in Greater Vancouver increased 46% y/y. 

• Total number of homes listed for sale in Metro Vancouver decreased 25% y/y.

My thoughts are with you during these challenging times and many solutions are available to help you with financial matters.  Whether you need your mortgage payments deferred, need short term financing, or assistance to navigate the Federal or Provincial support programs – I’m just a click away. Send me an email by clicking here.

March 18th 2020 - Latest Market Update

Mortgage Rates Collapse

The latest update:

• Prime lending rate is down a full 1% and prime is now 2.95% and variable rate mortgages are as low as 1.95%

• Mortgage stress test improvements slated for April 6 has been suspended indefinitely

• Banks and mortgage lenders offer mortgage payment deferrals of up to six months

• Ottawa is planning to purchase up to $50 billion in mortgages

• Global Financial markets are in correction territory along with oil prices

• Canadian dollar falls sharply against US dollar

• Personal income tax deadline extended to June1

• Real estate supply remains constrained and prices are trending higher
  

Concerned about your mortgage or your home or simply need money; click here. 

I’m available to help 7 days a week.

March 2020 Latest Market Update

Financial turmoil pushes mortgage rates lower

It’s hard to escape the headline news of the corona virus, pipeline protestors, road and rail blockades and of course the turmoil in Global financial markets.  This meltdown is a correction that we have not seen since the financial crisis back in 2008.   On Tuesday the Federal Reserve in the US took action and dropped rates by half of one percent.  The 10 year US treasury hit a record low of just under one percent.  On Wednesday the Bank of Canada matched the Feds and dropped the overnight rate by a half of one percent and noted that they are prepared to take further action as required.   The economic impact of the corona virus is being felt across the Globe and although it’s still early; major economies should experience a significant contraction.  This is obviously terrible news for many but on the positive side it should reduce borrowing costs and help with affordability of local real estate.  Mortgage rates were expected to decline this year but are now at the lowest they have been in many months.  Canada was already facing headwinds and this latest crisis will continue to challenge our economic growth and keep the downward pressure on rates.  Another rate decline by the Bank of Canada is expected at the next Bank of Canada meeting in April.  Check out the latest mortgage rate specials at the end of this report.

The trend of our local real estate market continues on the path of recovery.  Residential home sales across Greater Vancouver increased 45% from last February.  The total number of homes listed for sale is 21% lower than same period last year.  Steady home buyer demand with reduced supply has been the story lately.  Benchmark prices are once again starting to rise for all property types.  Lower Mainland continues to be a sought out place to live.  Low mortgage rates, a fair climate, strong employment growth and diverse demographic are some of the things that makes it a desirable place to live.  One thing that cannot be overlooked is our population growth.  In 2019 BC’s population grew by 70,000 or by almost 2%.  Surrey has seen the most growth than any other city in the province with 16,382 new residents.  This number may seem modest, but the number of new homes becoming available is currently not keeping pace with this growth.  We have seen a sharp decline of newly constructed homes from 2018 to 2019.  In some property types the drop is as much as 76%.   Our Government policies that have been introduced over the past few years to help improve affordability may have an impact in the short term, but will likely only worsen the issue over the long term, especially for BC residents.    

Click here for the full stats package

Mortgage rates:

• 5 year fixed, conventional uninsured: 2.64%

• 5 year fixed, high ratio insured: 2.54%

• 5 year variable, conventional uninsured: Prime -.80%

• 5 year variable, high ratio insured: Prime – 1.0%

February 2020 - Latest Market Update

2020 Is On A Roaring Start

“The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 1,571 in January 2020, a 42.4 per cent increase from the 1,103 sales recorded in January 2019…”

The amount of inventory across Lower Mainland has begun to rise from the lows we seen in December 2019 but the supply continues to remain below the normal seasonal amounts and the total amount of homes listed for sale is 20% less than same period last year.  Prices have held up reasonably well coming off a challenging 2019 and the benchmark price for all residential properties sits at just over $1million a modest 1.2% decline from the same period last year.

The story is similar in Toronto where the inventory of homes for sale is 17% lower from the same period last year.  Home prices have risen much stronger there and they are up 9% from last year.  The price rise is being fueled by strong demand, decreasing inventory and cheap money.  

It’s hard to say if this trend will continue throughout the year and as we move closer to the more active Spring market I will continue to monitor the supply to see if it keeps up to the demand. My personal opinion is as much as government policies may affect short term market conditions, real estate over the long term will continue to rise in price. Factors such as the cost of construction, population and employment growth and limited available land, especially in Great Vancouver; will continue to make home ownership more expensive.  

There is very little to report on mortgage lending.  Rates have only moved modestly lower and there is no expectation that we will see them rise.  Economic conditions may deteriorate later this year allowing the Bank of Canada to ease rates, but we have seen unexpected surprises from the economy over the past few years so nothing is assured.  As local real estate prices stabilize and begin to rise, it’s a great time to consider refinancing. For whatever the purpose, whether to maximize RSP contributions, pay taxes or for home improvements; I’m a click away.  Some lenders are offering attractive incentives to move your mortgage to them.  Whether it’s cash back to cover expenses or to discount the rate; it’s a good time to contact me to see what’s available. Never be stuck for money as there is usually a solution and I’m great a providing solutions.  

Happy Valentine ’s Day and happy Family day.  Take a moment and do something special this weekend.

“Loving someone and having them love you back is the most precious thing in the world.” Nicholas Sparks

Janaury 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