July Monthly Update

Interest Rates: 

The Bank of Canada decided to hold their policy interest rate steady at their most recent announcement on July 30th. This marks the third straight hold and the policy rate remains at 2.75%. For first time buyers, mortgage renewers and variable rate holders (like myself) we are still hoping and optimistic we will see two more rate drops before the end of the year. That is still the prediction my experts and we still have three more rate announcements for that prediction to come true. The next announcement will be on September 17th and my next market update should have more of a prediction on what to expect!

July Market Update:

July continued to see slight signs that the market is slowly bouncing back. The market saw just a 2% decrease in sales when compared to July 2024 which is much closer than we've seen in the previous 3-4 months. Buyer's still hold the edge with the amount of inventory currently on the market (around 17,000 homes) but seller's are starting to see more action at open houses and with offer's over the last two months. Vancouver is a notoriously resilient real estate market and while the bloated inventory could keep us in a buyer's market until the end of the year it's always hard to know exactly when the market might shift. 

July/August tend to be slower months in the real estate market in general as residents are focused on enjoying the sun and travelling. While I've noticed a slowdown each year over these two months it is also a time I start having more and more friends reach out as they start contemplating looking to buy or sell in the Fall. That is the feeling I have right now and we could see a bigger bounce-back in the market as we enter late September. Time will tell and I think it's important to keep an eye on the market closely over the next few months if you are thinking of making a move. Would love to chat about what timing might work best for you if you are thinking about it!


Market Stats:

We are starting to see the price per sq.ft come down over the past couple months, which just further confirms the buyer's market we have been in. The graph below highlights the drop we have seen with the orange line representing North Van and the green representing the GVR as a whole. While list prices remain high we are starting to see the sale price per sq.ft drop as buyer's negotiate lower prices.  As I've stated before the main benefit of a buyer's market is being able to negotiate a price below asking. Every seller has a different reason for trying to sell and if they are motivated to sell quickly or aren't getting much interest they could be much more open to accepting an offer that is below the price per sq.ft they were hoping for. It gives buyer's a great opportunity to get into the market below previous market value!



June Monthly Update

Interest Rates: 

With no rate announcement in June not much to cover in this section since our last update. That last update was when The Bank of Canada decided to keep their policy interest rate steady at 2.75% on June 4th.  It will be a toss up again whether they decide to drop the rate by 0.25% or hold it steady at their next announcement on July 30th. We will see what happens leading up to the announcement and as always any questions on interest rates and how they could affect your purchasing power just send me a question!

June Market Update:

June saw signs that the market is slowly bouncing back, but even with that we are still witnessing a buyers market currently. After a very slow first half of the year which saw sales decline 20% year-over-year, June saw that number shrink to just 10% when compared to last June. Buyer's are starting to take advantage of a market that is allowing them to take their time and get a discount on some great homes. For first time buyers this can be the perfect time to start looking and avoid the stress of a usually cut-throat Vancouver real estate market.   

I've been telling friends and clients all year I think it's a great time to buy or upsize if the timing makes sense for you. The last two months I've helped two first time buyers and one upsizer capitalize on the slower real estate market. This current market has been great in a sense because I am able to send so many potential options without the added stress of having to decide immediately after viewing a property. Additionally, each of these deals have gone for under the asking price and seller's are really willing to negotiate currently. With the market already showing signs of bouncing back I am not sure how much longer this "buyer's market" will last, but I am going to keep emphasizing to my clients to try and get in before we are back to the normal hectic Vancouver market.   


Market Stats:

The average price of condos had gone up and down to start the year and the last two months we have seen prices actually come down quite a bit. The average sale price of a condo in North Van now sits at $760,000 and in the GVR it's currently at $696,000. The market continues to show that there is real opportunities for buyer's and how long it will last is the tough question all realtors are trying to figure out. If you are thinking of potentially buying or selling this year, let's chat to strategize what might make the most sense for you!


May Monthly Update

Interest Rates: 

The Bank of Canada decided again to keep their policy interest rate steady at 2.75% at their latest announcement on June 4th. That is the second consecutive rate hold after seven straight rate cuts since June 2024. It was a toss up again whether they would decide to drop the rate by 0.25% or hold it steady. While they decided to hold it steady experts are still expecting to see another couple rate drops before the end of this year. 

The next announcement will be on July 30th and if I had to make a educated guess I would expect we see a 0.25% drop at that time. There are a ton of variables with tariffs still, but a weakening Canadian economy will probably cause the BOC to continue to lower rates in the near future. We will see what happens leading up to the announcement and as always any questions on interest rates and how they could affect your purchasing power just send me a question!


May Market Update:

May was another month of really high inventory and low sales. This is the biggest buyers market I have seen in my two and a half years as a realtor. Buyer's are having the luxury of being able to see a ton of homes on the market and really not much competition. This has allowed buyer's to be selective and really take their time before deciding to close on a property. Having that time to consider multiple options really gives buyer's a chance to pick a home that is perfect for them. It also gives buyer's a great chance to get properties for under market value.  

I am always getting asked why I think the market has been so slow recently and if you should be hesitant to get into the market as well right now. Here's my honest opinion (not an expert in economics or tariffs): The main reason the buyer pool has declined so much is mostly due to investors pulling back from purchasing investment properties and pre-sale projects. These are people that rely on large capital that they probably have mostly in the stock market, which as we know has been up and mostly down the last few months. This uncertainty has caused the pre-sale and condo market to drop dramatically in sales (down approx. 20% since Feb). That is a big chunk of buyers in the market that have essentially disappeared.

If you are thinking of getting into the market for a home you are going to live in the thought of not having to compete with investors who just want to rent the property is a great incentive to try and get in now. In my opinion, the economic uncertainty should only really stop you from purchasing a home if A) You are worried about potentially losing your job due to company layoffs, etc. or B) The majority of your savings are in volatile stocks/holdings that could go down substantially if tariffs aren't resolved. I really believe this Summer will be a great time to get a great deal on any condo/townhouse new home and would love to chat further about your personal situation to see if the timing is right for you!


Market Stats:

I've been liking the two graphs to really nail home the buyer's market we are currently in! Both graphs are specifically for the condo market as this is the subsection of housing that has seen the biggest slowdown. The first graph below shows the total inventory on the market at the end of May. Inventory levels for the GVR is currently 7,339 and 474 in North Vancouver. These levels of inventory are 20% and 34.7% higher than this time last year in those two areas.



The below graph is the total sales in May. Sales are down in the GVR 18% compared to last year and down 22% in North Van. In the GVR we saw only 1,096 sales, while North Van saw only 84 sales. Those levels of inventory matched with those low sale numbers really show the amount of options buyers currently have!


April Monthly Update

Interest Rates: 

The Bank of Canada decided to keep their policy interest rate steady at 2.75% at their latest announcement on April 16th. This marked the end of seven consecutive rate cuts that we have seen over the last year. Going into the announcement it was basically a toss up if they were going to drop the rate another 0.25% or hold it steady. While they decided to hold it steady experts are still expecting to see another couple rate drops before the end of this year. 

With that being said we are nearing the bottom of rate cuts according to economists, with most of the major banks predicting the low might be around 2% by the end of the year. There is still a lot of uncertainty with the market as a whole and that 2% is by no means a guarantee. It will be a wait and see approach as no real predictions have been made yet on the next announcement which will come June 4th. If you have been waiting for rates to reach the bottom we are very nearly there and there is a chance we are there already. The current interest rate has already allowed a lot of first time buyers enter the market and my advice is to always get into the market when it makes sense for you. Timing it perfectly is too difficult and the ultimate goal should be to find a great home for a monthly mortgage you can afford! 


April Market Update:

If you read my last market update in March stating we are in a buyer's market April only confirmed that further. Buyer's are having the luxury of having a ton of options on the market and really not much competition. This has allowed buyer's to be selective and really take their time before deciding to close on a property. As someone with two listings on the market currently it has proven tough to get a buyer over the finish line to actually write an offer. The demand is still there with showings and at open houses, but getting a final commitment requires some patience from seller's.  

The real estate market is still reacting from the tariff and overall global market uncertainty that we have been living in since Trump took office. If things become more clear on the direction of the global economy and trade deals are finalized things could always turnaround quickly. As of now it's a great time to be a buyer and if you have been waiting for a chance to get a good deal on a property now might be the best time. Less competition means you are able to view more properties and take your time making your decision. It means a better chance to be able to negotiate a price you are comfortable with and not being outbid in multiple offers. Of course it's still possible someone else is interested in the property you like, but right now is a great time in my opinion to try and find that dream home. 


Market Stats:

We have two graphs again this month to really nail home the buyer's market we are currently in! The first graph below shows the total listings we saw in April which for the GVR was 6,872 and 628 in North Vancouver. These numbers are similar to what we saw in April of last year but the second graph will show the drop in sales which is the confirmation of the options buyers have currently. 



As stated the below graph shows the total sales in April. Sales are down in the GVR 23% compared to last year and down 19% in North Van. In the GVR we saw 6,872 new listings as per the above and only 2,155 sales, while North Van saw 628 new listings and only 202 sales. That is a lot of options still sitting on the market and as of right now not much to indicate that will change much in May.




March Monthly Update

Interest Rates: 

The Bank of Canada had their latest policy interest rate announcement on March 12th where they dropped the rate another 0.25%. The rate now sits at 2.75% after the 7th consecutive rate cut we have seen now. It's again added relief for those on variable rate mortgages and those trying to get pre-approved for a mortgage. 

The next rate announcement is coming next week on April 16th. Right now there is a good chance we see another 0.25% rate cut, but there is also some speculation we could see the Bank of Canada hold the rate at 2.75%. Experts are still predicting we see the policy rate get to 2% by the end of 2025 which would mean 3 more rate drops and a couple of rate holds. There is some more variability with the US situation, but as long as tariffs are around we should continue to see our policy interest rate go down.   


March Market Update:

March continued to see modest gains on the sales side, but a huge uptick in new listings. This has made March and the start of April more of a buyer's market, as there is a lot of properties to choose from right now as buyer's are tending to be more hesitant. I think the recent stock market decline has a lot to do with buyer's moving slowly as we wait and see what happens with tariffs and the Canadian economy. It has definitely created some uncertainty and we have seen the Real Estate market become more conservative over the last month. 

Where do we go from here? I think it will continue to be a little slower for seller's over the next few months until the market stabilizes more. Well priced properties in desirable locations will most likely still sell quickly, but we could see the Days on Market be higher than it usually would in the Spring. For buyer's who aren't worried about potentially losing their job or money in the market it could honestly be a great time to start looking with lots of options to pick from. Less competition s a great recipe for success for potential buyers to try and get a price for less than it's worth. Trump is flip-flopping all over the place so we will see where the next few months take us!


Market Stats:

You get two graphs this month! The first shows the large increase of new listings which went from 5,068 in Feb to 6,446 in March for the GVR and 348 to 507 in North Vancouver. This confirms what I was stating above about there being a of new listings for potential buyers. Those numbers are an increase of 28% in the GVR and 55% in NV for new listings compared to March of last year.



The second graph shows the sales numbers from March which both saw increases from February, but not even close to matching the increase in new listings we've seen. It is also a decrease from March last year as sales are down 12% in the GVR and 8% in North Vancouver. These graphs together confirm that we are currently in a buyer's market and it feels like that might continue until the market settles down. Again we will see what happens with tariffs, the stock market and the economy as a whole and that will give us an indication of what to expect for the Summer real estate market.



February Monthly Update

Interest Rates:

The Bank of Canada did not have a policy rate announcement in February, but we are getting very close to their next announcement which is next Wednesday, March 12th. The policy interest rate currently sits at 3% and as of today the expectation is we will see another 0.25% drop next week. Another rate drop will help variable rate mortgages and predictions from experts this week are that we will see at least a 0.25% rate drop each of the next 4 announcements if the threat of tariffs remain.

Canadian bond yields are also down this week and again will continue to go down according to experts if tariffs remain. These bond yields directly affect fixed rate mortgages and could ultimately result in banks lowering them significantly over the next few months. So while the tariffs obviously have very large negative effects on the Canadian economy, they could help those that are currently on variable interest rates, those that are needing to renew their mortgage soon and those who are getting a mortgage for the first time. It could create a great opportunity for first time buyers to get into the market with lower rates!

February Market Update:

February saw a more modest increase than many expected with regards to new listings and sales. This has positioned the market conditions to be more balanced after January favored buyers. A more balanced market for looks to be what to expect in the coming months and is what I'm starting to experience myself out in the market. It seems that nice places that are priced correctly are still selling very quickly and anything overpriced or that needs a lot of work, are currently sitting on the market longer than usual. It's always best to act quickly when you see a property come onto the market that you really like and I'm expecting that will be even more paramount throughout the Spring.

On a personal note my partner Meaghan and I bought a property in the Lynnmour area in February. The lowering interest rates made it possible for us to get into the market and get a place a little bigger than we would have been able to the past couple of years. As rates continue to drop further it will just make it easier and easier for first time buyers to get a property that really fits their needs. It will also make it easier for current homeowners to look for a bigger spot to grow into for the future! For anyone that has questions about interest rates or making a move this year, I'd love to chat!

Market Stats:

A lot of the graphs looked very similar to what we saw in January. With that being said the two that had the biggest changes were Days and Market and Sales. Days on Market went from an average of 34 days in the Greater Vancouver Area in Jan to 16 days in Feb, while it changed more slightly from 15 days in North Vancouver in Jan to 13 days in Feb. This just shows that the market is getting more balanced as properties start to sell more quickly.

The below graph shows the Sales which increased in the GVR from 1,555 in Jan to 1,814 in Feb and much more slightly in North Van from 148 in Jan to 153 in Feb. Again just helps further emphasize that the market is becoming more balanced as more properties start to sell each month. March and the Spring in general should be a busy one!


January Monthly Update

Interest Rates:

The Bank of Canada dropped their policy interest rate on January 29th by 0.25% and that now brings the current rate to an even 3%. The threat of tariffs from the U.S. put another rate drop in question, but at the end of the day the interest rate was lowered for a 6th straight time. With a 30 day pause on tariffs we hopefully will know more at the end of the month and that will give us a better idea on what to expect at the next announcement on March 12th. The Bank of Canada is still holding strong that they will continue to drop rates no matter what happens with the potential tariffs. We will have to just wait and see how everything unfolds but as of now it is expected we should see another 0.25% drop in March.

January Market Update:

After a slow December (as expected) January saw a huge uptick of new listings. This was to be expected with interest rates dropping and home owners waiting until after the holidays to list their property. In January newly listed homes in Metro Vancouver rose 46% when compared to January of 2024. The number of sales also increased 8.8% in January compared to this time last year. It's a good sign for both buyers and sellers as we begin 2025. With inventory bouncing back to pre-inflation levels, buyers will have a lot more options when searching for their dream property. While the increased activity shown by buyers in January will also provide seller's with confidence that they should be able to sell their property relatively quickly once listed.

The amount of listings and potential buyers should only continue to increase as we move into February, March and April as these tend to be some of the busiest months of the year. I am already seeing that first hand as on Monday this week over 500 new listings were added to MLS in the Greater Vancouver area. That is a lot of new properties to hit the market in one day and we should continue to see that kind of volume in the coming weeks/months. I am very excited for the current buyer clients I have looking as it seems like just a matter of time until the right property for them pops up!

Market Stats:

I've included the below graph to back up the information I provided above. It shows the sharp increase of new properties that were listed in the Greater Vancouver Region and North Vancouver as well. In the GVR we saw new listings increase from 1,676 in December to 5,546 in January and in North Van we saw those same numbers go from 101 to 414. February should see another solid jump in new listing numbers and is already pacing to shatter the amount of new listings that we saw last February.


December Monthly Update

Interest Rates:

The Bank of Canada dropped their policy interest rate on December 11th by 0.5% and that means we ended the year with a rate of 3.25%. This was a larger rate drop than expected and really should help a lot of prospective buyers and current owners. It was the 5th consecutive rate drop and the second in a row of 0.5%. The real estate market already saw a big resurgence to end the year with the lowering rates and we should expect to see the same as 2025 begins. I can't wait to help many more of you get into the market or upsize in 2025 and the lower rates should really help! The next announcement is planned for January 29th where another drop is possible.

December Market Update:

This section is going to be short and sweet as December is always one of the slowest months in the real estate industry. Not many new listings hit the market as people enjoy the holidays with their family or travel abroad for some sun! The beginning of January is also typically slow, but as we get closer to the end of the month we will start to see an uptick of new properties hitting the market. It's never too early to get a search set up and start looking at what is currently on the market. If you have any plans of buying or selling in 2025 please reach out and we can start discussions on how to make that happen!

November Monthly Update

Interest Rates:

The Bank of Canada dropped their policy interest rate in October by 0.5% and with no rate announcement in November the rate still sits at 3.75%. Rates have dropped each of the last four announcements and that trend is looking to continue when the Bank of Canada makes their last announcement of the year on December 11th. Expectation is we should see the rate drop at least another 0.25% and bring it down to 3.5% to end the year. Stay tuned next week for the announcement and if we do get good news it will only continue to kickstart the market heading into 2025!

November Market Update:

The busy end of the Fall Market continued with personally the busiest month I've had since becoming a realtor two years ago. I've had four deals get completed in the last six weeks. One sale as I highlighted in my last market update that sold after 7 days on the market, as well as three purchases for clients (2 re-sale and 1 pre-sale). Many other realtors also saw a very busy month and the lowering interest rates finally seem to be making a big difference for potential buyers. While there is still room for the Bank of Canada rates to drop we are getting close to the projected bottom when it comes to 5 year fixed rates mortgage brokers can offer. Those rates are sitting around 4.5%-5% currently and we had an economist do a presentation on Wednesday where he didn't think we would see much lower than that in 2025. Those rates are still much more favorable from where we have been the last two years and are much more the norm than the extremely low rates people got accustom to during Covid.

While the market has heated up significantly we shouldn't expect the same numbers in December. There is still some action happening at the moment, but as we get closer and closer to the holidays things will really start to shut down. I made a video this week (on Instagram @Robtherealtor604) on some ways to get ready for the New year and get ahead of the rest of the market if you are thinking of buying/selling in early 2025. Two of those suggestions in short are to reach out to myself (I will have more and more free time to chat as December goes on) and also get connected with a mortgage broker. To get pre-approved with a mortgage broker or at your bank it can take a few weeks usually, as you will need to get quite a few documents in order. By doing so you will be ready to start looking quickly in the New Year and beat some other potential buyers who aren't as prepared.

Stats:

November's highlight below is focused on the amount of sales that happened in the Lower Mainland over the last month. While the momentum in October wasn't maintained we still saw a busier November in terms of sales than usual. We saw a total of 2,178 sales this year compared to just 1,692 the same month last year. It's another good sign that the market is starting to get back to a healthy balance for both buyers and sellers. The peaks of that graph is always April/May so the next few months will be spent getting clients prepared to buy/sell in that busy timeframe.


October Monthly Update

Interest Rates:

Well the big news that we were expecting came on October 23rd when the Bank of Canada announced their policy interest rate would drop 0.5%. With that announcement the new policy rate sits at 3.75%, the lowest rate since December 2022. It is great news for the real estate market as a whole, with current owners and potential buyers both benefiting from lower rates. The rate drop trend is looking to continue when the Bank of Canada makes their last announcement of the year on December 11th. We should see the rate drop at least another 0.25% and bring it down to 3.5% to end the year. All in all it has been a great 6 months with regards to rates and expectation is we will continue to get good news over the next couple of announcements.

October Market Update:

My September market update if you remember highlighted that September really didn't have the jolt many expected it would have with lowering rates. A usually very busy month of sales was really not that this year, as we saw a ton of places come onto the market, but buyers were still waiting on the sidelines. This meant homes were sitting on the market longer than usual and majority were selling for under asking if they were able to get any offers at all. Overall, September was 20% below the ten year seasonal average in sales. These results created a real worry that the market was not going to bounce back like many anticipated even with the rate drops. Well October quelled a lot of those concerns with home sales surging to 30% YOY. The stats below will highlight the real jump we saw in the market in October and I can tell you first hand I have felt it as well. Buyers have growing confidence that rates will continue to drop, and in my opinion, this is just the beginning for what is going to turn into a increasingly busy market. It was only a matter of time, but October has definitely provided sellers with a lot of confidence if they are thinking of listing their property sometime soon.

I have felt this market change personally with my listing at 1088 14th Ave in Vancouver that we listed on October 28th. We had 15 groups of potential buyers come through in the first week of being on the market and received two offers after our first weekend of open houses. The interest level again just shows that buyers are much more active than the previous few months. In the end we accepted an offer exactly one week after being on the market for a really great price and I couldn't be more happy for my sellers. The buyer's market we have been since June is not over, but it is getting more balnaced by the day with the amount of buyers finally coming back to market. As I've warned before the main cause of higher prices is competition and it is slowly looking like that added competition is coming back.

I've already been quite busy at the start of November with more people reaching out with questions and wanting to start looking into the market. If you are starting to think of buying or selling anytime soon I'd love to chat on when I think the timing might be best for you and how I can help!

Stats:

October's highlight below is focused on the amount of sales that happened in the Lower Mainland and Vancouver. The increase from September to October saw a big jump for both areas. GVR jumped from 1,837 sales in September to 2,624 sales in October and North Vancouver jumped from 143 sales to 225 in October. Both significant signs that the market is starting to pick up and buyers are coming back to the market with the new lower rates.



September Monthly Update

Interest Rates:

The policy interest rate is currently sitting at a 4.25%, with the next announcement being on October 23rd. There is great optimism we will see another rate drop form the Bank of Canada on the 23rd and there is even some talk that we could see a 0.50% drop which would be a great sign of things to come. Stay tuned to see if it is a 0.25% or 0.50% drop coming up and either way it should continue to ignite the market. After the 23rd there will be one more rate announcement in December before the end of the year and we should see some excitement heading into 2025.

September Market Update:

Crazy that we are already in the final few months of 2024. This year has been a bit of a roller coaster with regards to the market, but we are definitely heading to a increasingly exciting time to be a buyer or seller with rate drops and a growing economy. In September we did see things pick up compared to August, but honestly it hasn't been to the extent many predicted. New listings have increased in Greater Vancouver and North Vancouver, however they are still lower than what we were seeing just before Summer in April/May. Days on market has decreased a bit as well, but similar to new listings they haven't gone down to previous levels.

What that means is that September was still more of a buyer's market with just not the level of competition we are used to seeing in the first month post Summer. It seems people are looking and actively going to open houses, but not quite ready to make the jump and go for it. The Fall market is typically one of the busiest times of year and so far in October I have been having a lot more conversations with potential buyers and sellers so I think we are just around the corner from increased activity, with that being said it may be a bit slower than a lot of realtors have predicted. Another rate drop at the end of this month could change things quickly, and will be interesting to see if the buyer's still waiting on the sidelines will decide to jump into the market.

Stats:

As mentioned above we did see an increase in New listings and a drop for Days on Market in September compared to August. That was to be expected even if it wasn't as drastic as many thought it would be. I've decided to highlight the Days on Market below, as you can see they slowly increased throughout Summer and hit there peak in August before a slight dip in September. This is very typical in the Summer months and it will continue to drop until we reach December as the Fall market picks up.



August Monthly Update


Interest Rates: 

Another rate drop was announced on September 4th, which marks the third straight drop by the Bank of Canada. It was another 0.25% drop which brings the overnight lending rate to 4.25%. It's great news for variable rate holders and the market as a whole as the Bank of Canada continues to lower rates with the easing inflation.

It's starting to become much more likely that we will below 4% by the end of the year, which would definitely add some much needed relief for current owners and new buyers. The next announcement is October 23rd with a good chance we see at least another 0.25% drop. I'm excited for what lies ahead and the increase of activity on the real estate market should be noticeable. It would be a great time in my opinion to chat with myself or a mortgage broker and see what your current buying power would be, so as always reach out if you are starting to think about buying or selling more seriously!


August Market Update:

August is typically one of the slowest times of year when it comes to real estate activity. Most people (myself included) are enjoying the nice weather and doing weekend trips with friends. While I did have two possession dates for buyer clients at the beginning of the month, which was very exciting, most of my other buyer clients kind of put their search on hold as there wasn't much inventory to view. With that being said I was able to help one client buy some lakefront property up in 100 Mile house and I am very excited to see what they build up there! A good reminder that I can help you with your search no matter where it is in B.C. and even if I think I am not the right person to help you with the transaction, I am more than happy to refer you to someone who is. 

After a rather quiet-ish month the expectation is the Fall market is going to be very busy as it typically is. Interest rates lowering and kids back in school usually leads to a lot of new properties hitting the market. It's honestly the perfect time of year to start seeing what is out there if you are a first time buyer. On the other side is a great time to guage your current homes value if you are an owner already. You can't really go wrong on either side of the market in the next few months especially since it is shaping up to be a more balanced market, rather than the buyers market we saw over the Summer. 

Stats:

August saw listings and sales go down, while time on market for listings went up, which again was to be expected in one of the slower real estate months of the year. Will be fun to check back in at the end of September to see the spike of new listings and sales we expect to see this month. 

As always any questions or just general advice you are looking for I am always here to help and chat! Hope the rest of Summer is a blast and can't wait to talk with some of you soon :)



July Monthly Update

Interest Rates: 

When I wrote this section last month it was seeming more likely than not that rates would stay at 4.75% at the Bank of Canada announcement on July 24th. However, inflation eased again leading to them dropping the rate another 0.25% and the new policy rate is now at 4.5% the lowest since April 2023.

If things keep moving along as they are we could see another rate drop at their next announcement which is September 4th. Lower rates are a very welcome sign after the last couple years and with every drop I have had more people reaching out to see what the current market is like and and where we are headed. I will always be honest with what I am currently seeing in the market and give my opinion if I think it might be a good time for you personally to either buy/sell. So please always feel free to send me a message or email with any questions that you might have about your specific situation or on the market as a whole! 

July Market Update:

May and June were extremely busy for myself and the market. It was great to get a few deals completed for first time buyers and then sell my clients home in the first week on the market. A busy June meant a bit of a slower July for myself and the numbers in the market mirror that as well. July/August are typically slower months in the real estate world, mostly because it is a time that a lot of people choose to travel and enjoy the outdoors. While these Summer months are slow for new listings which ultimately leads to fewer transactions, the Fall usually picks up exponentially and is one of the busiest times of the year!

Sellers typically will use July/August to prepare their home and get all of the photos done with the nice weather. That way they are fully prepared to list their property in early September when more buyers will be looking into the market. With that in mind we should see another big influx of properties hitting the market as we enter September, similar to what we saw in April/May earlier this year. It seams like we are on the cusp of a very busy Fall from what I've been hearing, so if you'd like help to prepare for a busy market, please send me a message!

Rental Eviction Notice Change:

Last month, the government of BC changed its policy requiring landlords and homebuyers to give rental housing tenants three months notice instead of two months when selling a tenanted property. This is important for anyone who is thinking of selling a property they own but rent out currently. It is also important for buyers to be aware of when looking at any properties that are tenanted and not owner occupied. If you are currently renting it is also important to know your rights in case your landlord decides to sell the home you are living in. Any further questions on the changes let me know!

Stats:

As you can see the new listings that hit that market has dropped as I mentioned in July. The below graph shows North Vancouver and Vancouver as a whole. I would expect to see the same result in August before we see another uptick in September. If you'd like me to change any of the tabs to better fit what you will be looking for just ask!



Bank of Canada Rate July 24th Announcement

Intro:

The Bank of Canada cut its key interest rate by 0.25% down to 4.5% on Wednesday, with governor Tiff Macklem saying during a news conference that it would be reasonable to expect further rate cuts if inflation continues to ease. The next possible rate cut would be September 4th at the next announcement. The cut they made today was widely expected by economists after inflation eased in June. It marked the central bank's second consecutive cut after last month's 0.25% cut as well. These have been the first rate cuts since March 2020 and brighter days are on the horizon. So what do the rate cuts mean for you? Let's look at a few different scenarios below.

First Time Buyers:

If you are a first time buyer any news of rate cuts is good news. While the rates that mortgage brokers can provide don't immediately drop at each announcement, it does provide mortgage brokers and banks more confidence that inflation is slowing and bond rates will begin to ease. Mortgage brokers will slowly be able to secure better rates from their lenders, which ultimately will allow first time buyers an easier path to qualify for a mortgage and secure a mortgage with lower monthly payments. As this begins to happen more and more buyers who have been waiting for lower rates will jump back into the market. The last few months we have been in a buyer's market with more inventory than buyers on the market. This is very likely to change as rates continue to drop, we will see demand start to catch up to the current supply and that will create a more balanced market. The added competition when buying will bring back bidding wars and no subject offers, this will consequently cause home prices to rise and the time to get a home below asking will be tougher and tougher.

My advice for any first time buyers who have been contemplating buying and have money saved up for a down payment would be to seriously consider looking in the next few months. It is completely free to get pre-approved with a mortgage broker with no obligation that you will buy within a certain time period. So take advantage of that by getting pre-approved, then have myself set up a home search for you so you can see homes in your price range that might be right for you! Again there is never any pressure or obligation if the right place doesn't pop up but it really can't hurt to look.

Current Owners:

As a current owner it really depends on your current mortgage situation. If you are one of the lucky ones that is still locked in to a low fixed rate past this year I would definitely recommend holding onto that as by the time your mortgage renews hopefully we have had a few more rate drops. Now if your mortgage term is up in the next 6 months or so I really do think this could be a good time to sell and upsize with the lower prices currently on the market. Use your equity you've built on your current home to find that bigger space at a discounted price and then sell your property as more and more first time buyers are coming back to the market. 
Again, I would highly recommend connecting with a mortgage broker to see what that would look like and the cost to do so but the next 6 months might be the best time to upsize if you have the means to do it. Mortgage brokers are also starting to recommend variable or semi-variable mortgages again which could be a good option if you need to renew shortly. Talk with your mortgage professional and if you are thinking about upsizing before the end of the year I would love to help you with your search and sale!

Conclusion:

Ultimately back to back 0.25% rate drops over the last two months has been a welcome sign for everyone in the real estate market. Those on variable rate mortgages got some much needed relief and slowly the fixed rate markets will allow more and more first time buyers the ability to afford their first homes. It's a positive start to what should be a busy end of Summer and start to Fall and I can't wait to help more and more clients in the coming months. Please reach out if you have and questions about the current market or need help with buying or selling!

June Monthly Update
Interest Rates: 

After the Bank of Canada lowered the key interest rates by 0.25% on June 5th, inflation data has picked back up a bit and was higher than projected in June. That has caused experts to predict only a 40% chance we will see another 0.25% drop at the next announcement July 24th. With saying that there is still wide optimism that we will see the policy interest rate decrease to around 4% by the end of the year.

I've had some questions on why the interest rates you get offered from a bank or mortgage broker doesn't match the current 4.75% Bank of Canada rate and why it is always a little higher. Think of a mortgage as a product you buy. Any business that sells you something tries to make a profit. To do that, the price they charge for the product has to be higher than the cost to make it. A lender profits on your mortgage because you pay more in interest (the price it charges) than what they paid to borrow the money themselves (their funding cost).

June Market Update:

Well June was the busiest month of RobtheRealtors career with two sales on the buyer side and one sale on the listing side. I couldn't be happier for my clients, the two on the buyers sides both got awesome places in North Van that fit their needs (funny enough both were looking for two bedroom ground floor condos). Both were able to find places that they really liked and neither had to go to the very top of their budget, which is great to leave some room for any upgrades or changes they might want to make to their new homes! 

I really think all three of my sales are indicative of where the market is right now. The current market allowed one of my buyer's to get their place for under asking (only 7 days on the market) and my other buyer in a multiple-offer situation was still able to secure their home for under what another similar unit sold for in the same building last year (only 5 days on market). For the deal I had on the selling side, I was able to work up a little bit of a bidding war between two potential buyers. Both really liked the place and after back and forth negotiations with both potential buyers, I was able to secure my seller a no subject offer that was $75,000 over our asking price.

So what do those three deals and others I've been seeing show is happening in the market? Well I still truly believe it is a buyer's market just from the influx of new places hitting the market compared to the amount of current buyers. A less competitive landscape just gives buyers more flexibility on the price the ultimately want to offer and even in a multiple offer situation the sale price was still extremely reasonable. On the seller's side there is still obviously a chance to drive up the price in a multiple offer situation especially if you have a move-in ready home like the one I sold. 
I can't see this type of buyer's market lasting too much longer as supply always drives up more demand. Will be interesting to see where the market goes in the new couple months but I think there is still time to get a great spot at a discount.

Reach out!

I am waiting to hear from you! As always any questions about the market or rates and just send me a message, I love chatting about anything Real Estate so feel free to send me questions anytime.

May Monthly Update


Interest Rates: 

Finally some good news to report in this section as the Bank of Canada lowered their key interest rates by 0.25% on June 5th. The policy rate now sits at 4.75% and there is optimism that we could see another 0.25% drop at the next announcement July 24th. It is the beginning for what should be a downward trend for interest rates, which will provide a ton of relief for current owners and buyers who are looking to get into the market. 

Typically, a rate decrease has a reverse impact on asset values, leading to increased demand for real estate. Therefore, we should expect to see more and more transactions over the coming months. Each rate drop will result in a more competitive real estate market and a more competitive market will mean prices will rise but so will inventory. I am still seeing a lot of homes in the apartment/townhome market going for at or below asking but that might be short-lived. If you have any questions about rates or when might be the best time to get pre-approved just send me a message!




May Market Update:

In May I spent a lot of my time going to open houses with clients. It is super rare to buy the first place you see and pictures online are usually tough to get a real feel of a home. That is why I think it's so important to see as many places in person as you can, as it will slowly help you learn certain styles and floorplans that matches what you are ultimately looking for. A bunch of checking out places in May has already turned into finding a great place for one of my clients in early June. 

I always preach patience and giving yourself lots of time to make a move. There is no harm in monitoring the market even if you feel you are still a few months away from seriously looking. Almost all of the deals I do are after months of working together. Even if you just have questions or want information on a certain area/building I am always here to help. June has already started with a bang and I can't wait to help my other current clients find exactly what they are looking for!


Where are the rates going?: 

I also wanted to add the below graph again to give a better idea of where the interest rates are predicted to go over the next two years. Being at 4% by the end of the year would be a big boost for the market and anyone looking to purchase a new home.


Blog posts coming soon, please check back shortly.