Inventory hits a 4-year high, mortgage rates are falling and here is your market update.
As promised in the video…
Sales statistics for the METRO VANCOUVER (as defined by SnapStats): https://drive.google.com/file/d/17Euv…
Sales statistics for the GREATER VANCOUVER (as defined by SnapStats): https://drive.google.com/file/d/1TYrL…
Sales statistics for the FRASER VALLEY (as defined by SnapStats): https://drive.google.com/file/d/1Dpoe…
If you bought an average detached house in Greater Vancouver in January, you are now almost $120,000 richer.
If you bought an average townhouse in Greater Vancouver in January, you are now almost $69,000 richer.
If you bought an average condo in Greater Vancouver in January, you are now over $25,000 richer.
Looking at my predictions from this past winter, I predicted that values would go up at least 5% and that has already happened. I also “guessed” the BOC (Bank of Canada) would wait until June to drop their rates and that also, was exactly what happened. Perhaps I got lucky?
The Bank of Canada is likely going to decrease rates by another 25 to 50 basis Points by the end of the year. 100 basis points, for example, equates to 1%. Expect another further 1% decrease by the end of 2025. The Bank of Canada (BoC) aims to achieve an overnight rate of 2.75% by the end of next year, 2025 which means a substantial 200 basis points reduction (or 2%) over the next 18 months.
The next decision is July 24, it’s unlikely anything will happen at this time, but you never know. A notable factor influencing the BoC’s decision was the record $3.72 billion in quarterly net write-offs by the Big 6 banks. The majority of these write-offs were in personal loans and credit cards, highlighting consumer financial stress.
Business bankruptcies are a big problem, many companies never recovered from the Covid government enforced lockdowns. Canadian unemployment is on the rise, now over 6% suggesting that the Bank of Canada might need to lower rates further to stimulate the economy. Are we in a recession? Probably but I feel it will have very little effect on real estate prices in Greater Vancouver. Yes, there is a lot of doom and gloom in the media, specifically coming from Toronto. Be careful getting too hung on up on that.
One market I am not bullish on, is Vancouver, and I haven’t been for years now. If you want to see the greatest growth in equity, it’s likely not going to come out of a property in Vancouver, especially not near downtown. After the exodus during Covid, the Vancouver market hasn’t rebounded yet, while many other markets have performed well. We have also more inventory now and that’s going to slow things down. It’s basic supply and demand, economics 101.
Buyers have more options and sellars just have to understand it’s going take longer to sell properties. What would have sold in a couple of weeks, earlier in the year, can easily take a couple of months now. If you want to sell on the current market, be smart about your pricing or you’ll have to sit and wait for the market to come up to your desired value. If you are even considering buying in the next 12 months, figure out what you qualify for and start your research now. Sitting on the fence, aka, waiting, 12 months will cost you an estimated $200,000 using the average Greater Vancouver house.
That’s all for now, call me any time with skill-testing questions
Grab a copy of my best-selling book, ‘Rockstar Real Estate Investing‘, for more in-depth knowledge
The link to purchase my book on Amazon is posted in the description
Remember to Own Your Life!
Facebook Comments