February 2015 - Hello Blog followers
As I had earlier predicted.. Vancouver's housing market is off to a brisk start. With the recent announcement from the BoC lowering their overnight rate by 25bp, Canada's major banks were soon to follow with decreases but not in step with the BoC. Their concerns on ever more cheap $$ and their spread on profits has resulted in only a reduction of 15bp to their Prime Rate. This in turn has brought down some of the long term rates by 10-15bp, essentially putting a 5 year Fixed Term in the area of 2.84% to highly qualified applicants. Variable Rates will now drop down to 2.10-2.30%.. on a fixed 5 Year VR Term.. Wow!
What will this mean to you? A very interesting question as many would think we would all rush out to get the lowest rate possible. That said, Canadians already have a disturbing amount of household debt, combine that with some uncertainty in the job market, especially in resource rich provinces like Alberta and BC and you have a quite nervy marketplace. Still, despite these challenges, the housing market appears to be bucking the trend to the upside. Good news? Yes if you are a seller. Inventory of available single family homes both in Vancouyver and surrounding municipalities is currently quite low, this inturn puts upward pressure on prices and for the Buyers' out there getting ready to make a move, maybe not so good.
In previous years' where sellers appeard to be in the driving seat, those that SOLD in the first quarter of the year tended to get the higher prices, we will wait and see of that trend takes hold again.
With over 23 years' of service excellence here in Richmond and Vancouver, my knowledge and experience is ready to go to work for you - today!
Happy to chat anytime, thank you for dropping by today.