January 2024 - Latest Market Update

Great news to start the New Year

Mortgage rates have recently eased, and the interest rates overall are expected to fall throughout 2024.  This is comforting news for the mortgage borrowers facing a renewal later in the year.  Easing mortgage rates may be good news for homeowners, but not so much for those looking to make a home purchase.  

“Metro Vancouver’s housing market closed out 2023 with balanced market conditions, but the year-end totals mask a story of surprising resilience in the face of the highest borrowing costs seen in over a decade. ”

— From the latest REBGV stats

It has been many months since a 5-year fixed rate mortgage has been under 5%.  Lower mortgage rates will likely push real estate prices higher and not improve affordability.    Beyond the season changes, Inventory levels of available homes for sale are also falling.  It’s one of the primary reasons we escaped a market correction last year.  Bottom line; if you are considering buying a home, do it quickly.  

Need to get access to some of your home’s equity and you don’t want it to affect the great rate on your existing mortgage, then consider a 2nd mortgage.  You can be approved in less than 24 hours and many lenders are offering special incentives and quick funding options.  

November 2023 - Latest Market Update

Is It Downhill For Mortgage Rates?

The decades of high-interest rates have done the job. The impact of the higher rates is finally working to ease inflation.  The US, UK, and Canada to name a few are reporting easing inflation numbers and are now starting to be challenged with economic growth.   The consensus view of the Economists surveyed by Bloomberg last month predicts that rates in general will be 40% lower by no later than mid-2025.  

These economists also highlight concern over Canada’s looming wall of mortgage renewals upcoming over the next years.  There will be hundreds of billions in mortgages renewing at much higher interest rates which will, without any doubt have an impact on the Canadian economy.

Is your mortgage maturing soon?  Contact me before you lock into a high rate.

Did You Know?

The BC government has come out with new legislation intended to improve the zoning rules and allow townhomes, triplexes and laneway homes, on single-family lots – effective June 2024. In municipalities with more than 5,000 people, the new rules will allow for the following:

• Three units on single- or two-family lots less than 280 square metres (about 3,010 square feet)

• Four units on single- or two-family lots greater than 280 sq. m.

• Six units on lots greater than 280 sq. m. near “transit stops with frequent service”

Century 21 In Town Realty has announce a partnership with:

Our clients can now receive complimentary junk removal with every listing.

Click her for more details.

Improved mortgage solutions: 

• Common sense approvals with lenders that think outside the box and can get you prime rates. 

• A ‘No monthly payment’ options. 

• You can access your home equity of up to 85% of appraised value. 

• Quick approval – often within a few hours.

• Improved rates and fees.

October 2023 - Latest Market Update

High Interest rates make for a balanced market.

The high interest rates are having an impact, and the housing market is feeling it.  From the latest REBGV monthly stats: “The month-over-month price gains seen earlier this year abated in the Metro Vancouver housing market in September due to a seasonal decline in sales and a modest increase in inventory levels across the region.”

Locally, home prices have remained quite resilient but as long as rates remain high, there will be downward pressure on prices.  These interest rate pressures were very apparent in two Canadian Cities last month.  Sales in Toronto were down very significantly but compared to Calgary their sales were at record highs. Vancouver has avoided a downturn and there are now indications that interest rates may have reached their peak – can you imagine what happens to housing values when rates start easing! There’s a saying I like: ‘buy when everyone is selling and sell when everyone is buying’.  

Banks have also felt the impact of higher rates.  Mortgage volumes are down significantly and many of the banks are already beginning to explore ways to make up for the falling revenue.  I’m not sure if there has ever been a more challenging time to borrow money from a bank.     

We can help and here are some NEW solutions:

• Common sense approvals with lenders that think outside the box and can get you prime rates. 

• A ‘No monthly payment’ options. 

• You can access your home equity of up to 85% of appraised value.

• Quick approval – often within a few hours. 

• Improved rates and fees.

Did You Know?

In BC: About 3,000 eligible homeowners will be offered forgivable loans of up to $40,000 to help pay for construction costs for basement suites, garden suites or laneway homes on their property.   We have plenty of lenders that can help you finance this type of project.   

Want to learn more? Contact Tony today.

August 2023 - Latest Market Update

The Summer Sizzle

Mortgage rates have increased to a new summer high since the last rate increase by the Bank of Canada last month.   Where do we go from here?  The consensus is that the economy will begin a slow down and the rate increases will stop, and the interest rates will begin to fall.  This is certainly possible but maybe the bigger question is when will this happen?  The answer to that is even more difficult given our Country’s population boom.  I may not be confident about the timing, but I’m confident that the Bank of Canada will be reluctant to drop rates too quickly.   I believe the best we should expect to see is rates beginning to ease next Spring.  

Many borrowers are being turned away from the banks.  Don’t let the bank be your final answer.   There are options available to help whether you are refinancing, renewing or just need money.    

• 35 year amortizations can be offered.  This helps keep your payment low especially if you were not prepared for the higher rates upon a renewal. 

• Private 2nd mortgages.  This helps raise funds you may need and may allow you to maintain the low rate on your 1st Mortgage. 

• Private 1st mortgages.  This can be a great short-term solution and rates will very depending on equity position.

• Vendor Take-Back Mortgages.  This may be an ideal for sellers looking to earn a steady stream of monthly income secured against the home you sold.  

Private Mortgage Rate Sale:

Current blocks of funds from recent payouts looking for a new home:

• $125,000 as low as 9.95% (up to 70% equity)

• $300,000 as low as 11.95% (Up to 80% equity)

• $150,000 as low as 13.95% (Up to 85% equity)

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RECENTLY SOLD AND IS NOW ONE OF THE MOST EXPENSIVE HOMES EVER SOLD IN NORTH DELTA:
11932 CLARK DR, DELTA

June 2023 - Latest Market Update

40 Million and Growing

The Canadian population hit the 40-million-mark last week and the Real Estate crash many were expected has so far this year has been avoided.  Economists predict that Canada will need 3.5 million additional housing units by 2030 to restore affordability.  While the housing growth has not kept pace the high interest rates have had an unexpected affect on Real Estate.   New listings across the Country have been falling; reducing the supply.  It has been said that the high mortgage rates have been a deterrent to homeowners’ listing their homes for sale.  This combined with increased demand has driven prices higher, which of course has worsened affordability.  This doesn’t mean selling in today’s market is easy.   Homes that are well priced and well marketed are selling successfully.  Being in the industry for as long as I have, I’ve seen it all – the good and the bad.   It's not the glitz that gets home sold successfully, but rather smart practices and good advice. 

Mortgage rates stay elevated. If your mortgage is up for renewal, you will likely be surprised by the rates being offered and the increase of the new payment.  In some cases, borrowers could see an increase of up to 80%.   Many economists worry about the impact to borrowers especially by 2025 when many borrowers will have their mortgage due for renewal from the time they locked into very low rates during covid.   Don’t wait to be shocked.  Act now and explore your options by contacting me. 

• Fixed rates vary from 4.90% to 6.05%.

• Variable rates range from 6.20% to 6.80%

• The prime lending rate is 6.95%

Don’t be stuck for money.  Private lenders are looking to get you money and often you can access up to 85% of the equity in your home.

February 2023 - Latest Market Update

Making 2023 your most prosperous year yet

In the Chinese culture, 2023 is considered the year of the Rabbit.  The sign of Rabbit is a symbol of longevity, peace, and prosperity in Chinese culture, and it is not the year to take wild risks but rather to focus on building a solid financial foundation. To make 2023 one of your most prosperous years, I believe it’s important to have a solid plan.  

Interest rates and inflation are the highest it’s been in decades. The stock markets are volatile and real estate sales have slumped.  Although sales are below historical averages, inventory levels remain very low and homes that are well priced are selling very successfully.  When it comes to selling your home, some little things can make a huge difference.    

Here’s just a few tips to maximize your sale price:

1. Ensure your listing is launched with photos.   Photos evoke emotion and when they are not available at the time of the launching the listing, buyers can move on to other opportunities. 

2. When you can avoid having your realtor use a Lockbox.  They are paid to sell your home so make sure they make effort to be present at all showings to showcase, answer buyers’ questions and sell your home for maximum dollars.

3. Do not allow your realtor to use other realtors to host your Open House.  No one knows your home better and cares more than your listing agent.  Features that make your home unique can be overlooked. 

Mortgage rates have begun to ease, and we are starting to see some great deals on mortgage rates.  Five-year fixed rates are being offered as lows as 4.89% and variable rates as low as 5.50%.  When it comes to refinancing or renewing your mortgage consider the following:

1. Banks are not always the best option for a mortgage.  Credit Unions do not need to follow the qualification criteria that banks must follow, and this may not only save you thousands of dollars in interest, but it may also make a huge difference in what type of home you can purchase. 

2. Credit reporting agencies have changed how they determine your credit scores.  Avoid utilizing credit cards as it has a negative impact on your score.  A high credit score usually gets you a better rate. 

3. Rather than refinancing your existing mortgage that may have an attractive interest rate, consider a 2nd mortgage, and then refinance in the future to combine the mortgages when rates are more attractive. This could possibly save you thousands in interest. 

Let me show you how I can help, contact me today.

December 2022 - Latest Market Update

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.   

Wishing you all the best of 2023 and Happy Holidays

October 2022 - Latest Market Update

Is Inflation Impacting Real Estate?

The Bank of Canada has sent a clear message to Canadians as it executes the most aggressive round of tightening in the Country’s history and increases the bank rate by 50 basis point, it’s sixth increase this year.   A recession here and around the world seems inevitable as borrowing rates reach levels not seen in decades.  A 5-year fixed rate mortgage is now reaching over 6% and variable rates are reaching above 5%.  Private lending rates have also increased, but at a more modest pace.  

The Canadian Real Estate market is also feeling the impact with increased listings and a significant reduction is sales.  Prices have begun to soften, more so in some areas and most homes are selling under the list price.   Real Estate developers have also begun to delay and/or cancel projects.  Governments are not helping, and they continue to be a huge part of the inflation problem.   As the Country enters a recession, Government budgets will become strained, especially in BC where a huge percentage of the Government’s revenue comes from taxes on Real Estate.

That being said, there are some reasons to be optimistic.  Rental rates have increased significantly and is allowing many property owners to meet their increased expenses.  Metro Vancouver’s rents are some of the highest in Canada and it’s allowing many investors from having to sell their property.

The Bank of Canada’s tightening is beginning to work, and the inflation rate has already slowed and is expected to fall further over the next few months.  This should provide some relief of further rate increases and possibly allowing the Bank of Canada to start easing monetary policy next Spring. 

If your mortgage is up for renewal try to avoid locking-in to a fixed rate beyond 3-5 years.  Variable rates are still great options for some borrowers, but caution to the Bank/lender you consider.  Some mortgage lenders will increase the payment with the increase in rates, but do not lower payment when the rates begin to fall.  Check with your lender before making decisions. 

Minimize borrowings as much as possible.  It may be better to take some equity out of your home rather than carrying balances on credit cards.  Many private lenders are sitting on a huge pile of cash and are eager to lend out the money. 

If you have a pre-sale purchase completing soon and the bank said no, don’t stress.  There are plenty of options to help get the deal completed.  

Did you know: In Scotland, homeowners have been known to paint their front door red when they pay off their mortgage. 

September 2022 - Latest Market Update

Storm Clouds

I don’t think anyone will be surprised to hear that mortgage rates have more than doubled over the past year and are predicted to rise further.  The next Bank of Canada meeting is on October 26th, and it’s expected to increase the rate by another 75 basis points.  The impact of higher rates is significant and monthly payments can be increased as much as 40% compared to last year and this will be higher in a few months.     

• September 2021:  $100,000 @ 2.60% with 30-year amortization = $399 per month

• September 2022:  $100,000 @ 5.44% with 30-year amortization = $560 per month

The bigger impact is on the qualifying rate lenders use for mortgage financing which has reached over 7%.  This is making it very difficult to qualify for a prime rate financing.  At the end of August, the benchmark price of a condo in Greater Vancouver was $740,000 and $1,954,000 for a detached home. 

To qualify for a prime rate mortgage at these benchmark prices with a 20% down payment:

• For condo you need income of at least: $192,300.

• For a detached home you need income of at least: $452,000.  

Of course, these high rates are having an impact on the Real Estate market.  Sales have been falling steadily since the Spring and prices across the Country are starting to fall.   Some areas have been impacted worse than others, but it may be only a matter of time before we see prices fall everywhere. 

Will the increases in rates start reducing the rate of inflation?  Eventually the rate increases will do the job to tame inflation, but the challenge is with the timing.  Our Governments of all levels continue to fuel inflation with money printing policies.  I don’t think any economist would feel that a deep recession isn’t on the horizon for Canada and the world. It is usually the recession that will cause inflation to fall.    

Another huge issue we are facing is housing affordability.  The solution for housing affordability was determined to be to increase the supply of housing.  The rising costs of construction of new homes has resulted in many developers and builders to cancel and/or pause projects throughout the Country.  As our population continues to grow; this will cause a supply problem in meeting the demands for housing putting upward pressure on prices.  

With that being said, I recommend anyone looking to make a home purchase consider doing so this winter and take advantage of a softer market.   Bottom line: the demand for housing should continue to accelerate, so whether you are a buyer or renter; expect to pay more.   

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.