August Monthly Update
Another rate drop was announced on September 4th, which marks the third straight drop by the Bank of Canada. It was another 0.25% drop which brings the overnight lending rate to 4.25%. It's great news for variable rate holders and the market as a whole as the Bank of Canada continues to lower rates with the easing inflation.
It's starting to become much more likely that we will below 4% by the end of the year, which would definitely add some much needed relief for current owners and new buyers. The next announcement is October 23rd with a good chance we see at least another 0.25% drop. I'm excited for what lies ahead and the increase of activity on the real estate market should be noticeable. It would be a great time in my opinion to chat with myself or a mortgage broker and see what your current buying power would be, so as always reach out if you are starting to think about buying or selling more seriously!
August Market Update:
August is typically one of the slowest times of year when it comes to real estate activity. Most people (myself included) are enjoying the nice weather and doing weekend trips with friends. While I did have two possession dates for buyer clients at the beginning of the month, which was very exciting, most of my other buyer clients kind of put their search on hold as there wasn't much inventory to view. With that being said I was able to help one client buy some lakefront property up in 100 Mile house and I am very excited to see what they build up there! A good reminder that I can help you with your search no matter where it is in B.C. and even if I think I am not the right person to help you with the transaction, I am more than happy to refer you to someone who is.
After a rather quiet-ish month the expectation is the Fall market is going to be very busy as it typically is. Interest rates lowering and kids back in school usually leads to a lot of new properties hitting the market. It's honestly the perfect time of year to start seeing what is out there if you are a first time buyer. On the other side is a great time to guage your current homes value if you are an owner already. You can't really go wrong on either side of the market in the next few months especially since it is shaping up to be a more balanced market, rather than the buyers market we saw over the Summer.
Stats:
August saw listings and sales go down, while time on market for listings went up, which again was to be expected in one of the slower real estate months of the year. Will be fun to check back in at the end of September to see the spike of new listings and sales we expect to see this month.As always any questions or just general advice you are looking for I am always here to help and chat! Hope the rest of Summer is a blast and can't wait to talk with some of you soon :)
July Monthly Update
July Monthly Update
Interest Rates:
When I wrote this section last month it was seeming more likely than not that rates would stay at 4.75% at the Bank of Canada announcement on July 24th. However, inflation eased again leading to them dropping the rate another 0.25% and the new policy rate is now at 4.5% the lowest since April 2023.If things keep moving along as they are we could see another rate drop at their next announcement which is September 4th. Lower rates are a very welcome sign after the last couple years and with every drop I have had more people reaching out to see what the current market is like and and where we are headed. I will always be honest with what I am currently seeing in the market and give my opinion if I think it might be a good time for you personally to either buy/sell. So please always feel free to send me a message or email with any questions that you might have about your specific situation or on the market as a whole!
July Market Update:
May and June were extremely busy for myself and the market. It was great to get a few deals completed for first time buyers and then sell my clients home in the first week on the market. A busy June meant a bit of a slower July for myself and the numbers in the market mirror that as well. July/August are typically slower months in the real estate world, mostly because it is a time that a lot of people choose to travel and enjoy the outdoors. While these Summer months are slow for new listings which ultimately leads to fewer transactions, the Fall usually picks up exponentially and is one of the busiest times of the year!
Sellers typically will use July/August to prepare their home and get all of the photos done with the nice weather. That way they are fully prepared to list their property in early September when more buyers will be looking into the market. With that in mind we should see another big influx of properties hitting the market as we enter September, similar to what we saw in April/May earlier this year. It seams like we are on the cusp of a very busy Fall from what I've been hearing, so if you'd like help to prepare for a busy market, please send me a message!
Rental Eviction Notice Change:
Last month, the government of BC changed its policy requiring landlords and homebuyers to give rental housing tenants three months notice instead of two months when selling a tenanted property. This is important for anyone who is thinking of selling a property they own but rent out currently. It is also important for buyers to be aware of when looking at any properties that are tenanted and not owner occupied. If you are currently renting it is also important to know your rights in case your landlord decides to sell the home you are living in. Any further questions on the changes let me know!Stats:
As you can see the new listings that hit that market has dropped as I mentioned in July. The below graph shows North Vancouver and Vancouver as a whole. I would expect to see the same result in August before we see another uptick in September. If you'd like me to change any of the tabs to better fit what you will be looking for just ask!
Bank of Canada Rate July 24th Announcement
Intro:
The Bank of Canada cut its key interest rate by 0.25% down to 4.5% on Wednesday, with governor Tiff Macklem saying during a news conference that it would be reasonable to expect further rate cuts if inflation continues to ease. The next possible rate cut would be September 4th at the next announcement. The cut they made today was widely expected by economists after inflation eased in June. It marked the central bank's second consecutive cut after last month's 0.25% cut as well. These have been the first rate cuts since March 2020 and brighter days are on the horizon. So what do the rate cuts mean for you? Let's look at a few different scenarios below.
First Time Buyers:
If you are a first time buyer any news of rate cuts is good news. While the rates that mortgage brokers can provide don't immediately drop at each announcement, it does provide mortgage brokers and banks more confidence that inflation is slowing and bond rates will begin to ease. Mortgage brokers will slowly be able to secure better rates from their lenders, which ultimately will allow first time buyers an easier path to qualify for a mortgage and secure a mortgage with lower monthly payments. As this begins to happen more and more buyers who have been waiting for lower rates will jump back into the market. The last few months we have been in a buyer's market with more inventory than buyers on the market. This is very likely to change as rates continue to drop, we will see demand start to catch up to the current supply and that will create a more balanced market. The added competition when buying will bring back bidding wars and no subject offers, this will consequently cause home prices to rise and the time to get a home below asking will be tougher and tougher.
My advice for any first time buyers who have been contemplating buying and have money saved up for a down payment would be to seriously consider looking in the next few months. It is completely free to get pre-approved with a mortgage broker with no obligation that you will buy within a certain time period. So take advantage of that by getting pre-approved, then have myself set up a home search for you so you can see homes in your price range that might be right for you! Again there is never any pressure or obligation if the right place doesn't pop up but it really can't hurt to look.
Current Owners:
As a current owner it really depends on your current mortgage situation. If you are one of the lucky ones that is still locked in to a low fixed rate past this year I would definitely recommend holding onto that as by the time your mortgage renews hopefully we have had a few more rate drops. Now if your mortgage term is up in the next 6 months or so I really do think this could be a good time to sell and upsize with the lower prices currently on the market. Use your equity you've built on your current home to find that bigger space at a discounted price and then sell your property as more and more first time buyers are coming back to the market.
Again, I would highly recommend connecting with a mortgage broker to see what that would look like and the cost to do so but the next 6 months might be the best time to upsize if you have the means to do it. Mortgage brokers are also starting to recommend variable or semi-variable mortgages again which could be a good option if you need to renew shortly. Talk with your mortgage professional and if you are thinking about upsizing before the end of the year I would love to help you with your search and sale!
Conclusion:
Ultimately back to back 0.25% rate drops over the last two months has been a welcome sign for everyone in the real estate market. Those on variable rate mortgages got some much needed relief and slowly the fixed rate markets will allow more and more first time buyers the ability to afford their first homes. It's a positive start to what should be a busy end of Summer and start to Fall and I can't wait to help more and more clients in the coming months. Please reach out if you have and questions about the current market or need help with buying or selling!
June Monthly Update
After the Bank of Canada lowered the key interest rates by 0.25% on June 5th, inflation data has picked back up a bit and was higher than projected in June. That has caused experts to predict only a 40% chance we will see another 0.25% drop at the next announcement July 24th. With saying that there is still wide optimism that we will see the policy interest rate decrease to around 4% by the end of the year.
I've had some questions on why the interest rates you get offered from a bank or mortgage broker doesn't match the current 4.75% Bank of Canada rate and why it is always a little higher. Think of a mortgage as a product you buy. Any business that sells you something tries to make a profit. To do that, the price they charge for the product has to be higher than the cost to make it. A lender profits on your mortgage because you pay more in interest (the price it charges) than what they paid to borrow the money themselves (their funding cost).
June Market Update:
Well June was the busiest month of RobtheRealtors career with two sales on the buyer side and one sale on the listing side. I couldn't be happier for my clients, the two on the buyers sides both got awesome places in North Van that fit their needs (funny enough both were looking for two bedroom ground floor condos). Both were able to find places that they really liked and neither had to go to the very top of their budget, which is great to leave some room for any upgrades or changes they might want to make to their new homes!
I really think all three of my sales are indicative of where the market is right now. The current market allowed one of my buyer's to get their place for under asking (only 7 days on the market) and my other buyer in a multiple-offer situation was still able to secure their home for under what another similar unit sold for in the same building last year (only 5 days on market). For the deal I had on the selling side, I was able to work up a little bit of a bidding war between two potential buyers. Both really liked the place and after back and forth negotiations with both potential buyers, I was able to secure my seller a no subject offer that was $75,000 over our asking price.
So what do those three deals and others I've been seeing show is happening in the market? Well I still truly believe it is a buyer's market just from the influx of new places hitting the market compared to the amount of current buyers. A less competitive landscape just gives buyers more flexibility on the price the ultimately want to offer and even in a multiple offer situation the sale price was still extremely reasonable. On the seller's side there is still obviously a chance to drive up the price in a multiple offer situation especially if you have a move-in ready home like the one I sold.
I can't see this type of buyer's market lasting too much longer as supply always drives up more demand. Will be interesting to see where the market goes in the new couple months but I think there is still time to get a great spot at a discount.
Reach out!
I am waiting to hear from you! As always any questions about the market or rates and just send me a message, I love chatting about anything Real Estate so feel free to send me questions anytime.
May Monthly Update
Interest Rates:
Finally some good news to report in this section as the Bank of Canada lowered their key interest rates by 0.25% on June 5th. The policy rate now sits at 4.75% and there is optimism that we could see another 0.25% drop at the next announcement July 24th. It is the beginning for what should be a downward trend for interest rates, which will provide a ton of relief for current owners and buyers who are looking to get into the market.
Typically, a rate decrease has a reverse impact on asset values, leading to increased demand for real estate. Therefore, we should expect to see more and more transactions over the coming months. Each rate drop will result in a more competitive real estate market and a more competitive market will mean prices will rise but so will inventory. I am still seeing a lot of homes in the apartment/townhome market going for at or below asking but that might be short-lived. If you have any questions about rates or when might be the best time to get pre-approved just send me a message!
May Market Update:
In May I spent a lot of my time going to open houses with clients. It is super rare to buy the first place you see and pictures online are usually tough to get a real feel of a home. That is why I think it's so important to see as many places in person as you can, as it will slowly help you learn certain styles and floorplans that matches what you are ultimately looking for. A bunch of checking out places in May has already turned into finding a great place for one of my clients in early June.
I always preach patience and giving yourself lots of time to make a move. There is no harm in monitoring the market even if you feel you are still a few months away from seriously looking. Almost all of the deals I do are after months of working together. Even if you just have questions or want information on a certain area/building I am always here to help. June has already started with a bang and I can't wait to help my other current clients find exactly what they are looking for!
Where are the rates going?:
I also wanted to add the below graph again to give a better idea of where the interest rates are predicted to go over the next two years. Being at 4% by the end of the year would be a big boost for the market and anyone looking to purchase a new home.
Finally some good news to report in this section as the Bank of Canada lowered their key interest rates by 0.25% on June 5th. The policy rate now sits at 4.75% and there is optimism that we could see another 0.25% drop at the next announcement July 24th. It is the beginning for what should be a downward trend for interest rates, which will provide a ton of relief for current owners and buyers who are looking to get into the market.
Typically, a rate decrease has a reverse impact on asset values, leading to increased demand for real estate. Therefore, we should expect to see more and more transactions over the coming months. Each rate drop will result in a more competitive real estate market and a more competitive market will mean prices will rise but so will inventory. I am still seeing a lot of homes in the apartment/townhome market going for at or below asking but that might be short-lived. If you have any questions about rates or when might be the best time to get pre-approved just send me a message!
May Market Update:
In May I spent a lot of my time going to open houses with clients. It is super rare to buy the first place you see and pictures online are usually tough to get a real feel of a home. That is why I think it's so important to see as many places in person as you can, as it will slowly help you learn certain styles and floorplans that matches what you are ultimately looking for. A bunch of checking out places in May has already turned into finding a great place for one of my clients in early June.
I always preach patience and giving yourself lots of time to make a move. There is no harm in monitoring the market even if you feel you are still a few months away from seriously looking. Almost all of the deals I do are after months of working together. Even if you just have questions or want information on a certain area/building I am always here to help. June has already started with a bang and I can't wait to help my other current clients find exactly what they are looking for!
Where are the rates going?:
I also wanted to add the below graph again to give a better idea of where the interest rates are predicted to go over the next two years. Being at 4% by the end of the year would be a big boost for the market and anyone looking to purchase a new home.