Correction Or Recovery?
The Greater Vancouver real estate market continues to experience slower sales and rising inventory, creating favorable conditions for buyers. Sales are down 14% from last year, while the benchmark price for all residential properties has fallen 3.4%.
Conditions are even softer in the Fraser Valley, which remains firmly in a buyer’s market. Prices there have declined by an average of 5.8%, with apartment-style homes seeing the steepest drop — up to 7% year-over-year.
The Bank of Canada lowered rates again at its meeting last week — the fourth rate cut this year. However, it has yet to spark meaningful buyer activity. While the Bank signaled that additional rate cuts will be limited, at least one more reduction is expected before year’s end.
No one can predict the market’s exact path, but it’s reasonable to assume that without significant changes to provincial and federal housing/economic policies, we may remain in a correction phase for some time.
The good news?
Fixed mortgage rates — which had remained stubbornly high even as the prime rate fell — are finally easing. Most lenders are now offering fixed rates between 2.90% and 4.10%, while private and alternative lenders are providing first and second mortgages starting as low as 6.50% and 8.99%, respectively.
Don’t let tough market conditions hold you back. We can help you reduce your monthly payments; access needed funds and make the most of today’s lending environment.