January 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 Updates

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