BC Home Sales Edge Up as Rate Cuts Loom
BC residential sales rose just over 2% last month compared to a year ago, while average prices slipped by a similar amount. Despite higher fixed mortgage rates, market momentum is holding into late summer.
Relief could be coming: the Bank of Canada’s September 17th meeting may bring a rate cut, with more likely this fall as economic growth slows, and labour markets weaken — good news for variable-rate borrowers and the housing market.
Today’s softer prices are being driven primarily by an oversupply of condos and townhomes, a result of a decade-long building boom. But with construction now slowing, inventory will tighten, and history tells us that prices follow. As the saying goes: Don’t wait to buy real estate — buy real estate and wait.
Today’s mortgage landscape:
Prime lending rate: 4.95%
Fixed-term rates: 3.99% to 4.69% (depending on term)
Variable rates: as low as 4.30%
Alternative 1st mortgage rates: as low as 6.95%
2nd mortgage rates: as low as 8.99%
With the possibility of lower rates and rising demand on the horizon, now could be the moment to make your move!