Term |
Best |
Bank Posted |
1 year |
4.35% |
6.35% |
3 year |
5.15% |
6.75% |
5 year |
5.10% |
7.20% |
10 year |
6.10% |
7.80% |
25 year |
6.75% |
n/a |
Term |
Best |
Bank Posted |
1 year |
4.35% |
6.35% |
3 year |
5.15% |
6.75% |
5 year |
5.10% |
7.20% |
10 year |
6.10% |
7.80% |
25 year |
6.75% |
n/a |
|
Bank Prime Rate 4.00% |
|
Term |
Best |
Bank Posted |
1 year |
4.49% |
6.35% |
3 year |
5.25% |
7.05% |
5 year |
5.69% |
7.20% |
10 year |
6.10% |
8.00% |
25 year |
6.75% |
n/a |
Residential Housing Price Decline
Creates Buying Opportunities
Housing price reductions across Greater Vancouver over the last six months have eliminated price gains witnessed in the first quarter of 2008.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 8.8 per cent between May and October 2008, resulting in a 3.9 per cent year-to-date price reduction for detached, attached and apartment properties in Greater Vancouver between Octobers 2007 and 2008. In May 2008, the overall residential benchmark price was $568,411, compared to $518,668 in October 2008.
“Home sales are not keeping pace with the positive economic conditions in BC,” said REBGV president, Dave Watt. “That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market.”
Residential property sales in Greater Vancouver declined 55 per cent in October 2008 to 1,364 from the 3,028 sales recorded in October 2007.
Active listings totalled 19,257 in October 2008, a three per cent decline from the 19,852 active listings reported in September 2008. New listings for detached, attached and apartment properties increased one per cent to 4,867 in October 2008 compared to October 2007, when 4,819 new units were listed.
Sales of detached properties in October 2008 declined 56.5 per cent to 493 from the 1,133 sales recorded during the same period in 2007. The benchmark price for detached properties declined 4.7 per cent from October 2007 to $695,962. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 9.8 per cent.
Sales of apartment properties in October 2008 declined 52.7 per cent to 647, compared to 1,368 sales in October 2007. The benchmark price of an apartment property declined 3.5 per cent from October 2007 to $358,359. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined eight per cent.
Interest rates have stayed much the same this week while the stock market and the Canadian dollar have lossed ground significantly. Central Banks are still cutting rates with the US Federal Reserve expected to decrease their rate by .25% to .50%. There should be a few more decreases in the Bank of Canada rate coming in the next year.
The bond market is also pricing in a decrease in the longer term rates. Rates are low, Real Estate values are down from their highs. Investors are going to be seeing opportunity!
|
Bank Prime Rate 4.00% |
|
Term |
Best |
Bank Posted |
1 year |
4.49% |
6.25% |
3 year |
5.25% |
6.75% |
5 year |
5.69% |
7.20% |
10 year |
6.10% |
7.80% |
25 year |
6.75% |
n/a |
Home Prices Adapt to Affordability Demands
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 42.9 per cent in September 2008 to1,585 from the 2,776 sales recorded in September 2007.
The "best" time to list your house is actually as soon as you decide to sell it. If you want to get the best price for your house, the key is to give yourself as much time as possible to sell it. More time means more potential buyers will probably see the house. This should result in more offers; it also gives you time to consider more options if the market is slow or initial interest is low.
Is there any seasonality to the market? Peak selling seasons vary in different areas, and weather has a lot to do with it. Late spring and early fall are the prime listing seasons because houses tend to "show" better in those months than they do in the heat of summer or the cold of winter. And of course, people like to do their house shopping when the weather is pleasant. But keep in mind that there are also more houses on the market during the prime seasons, so you'll have more competition. So while there is seasonality in the real estate market, it's not something that should dominate your decision on when to sell. What about market conditions — price trends, interest rates, and the economy in general? Should they have any bearing on when I list? Probably not. Even if you're under no pressure to sell, waiting for better market conditions is not likely to increase your profit potential. So how long should it take to sell?
The Canadian Housing market is losing its edge but not headed for a crash.
BC will outperform most other provinces in economic and job growth during the next two years. This relative strength will translate into a high level of existing home sales, housing starts and house
prices.
High home prices will result in more homes being listed for sale. This increase in supply will slow growth in the provincial average MLS® price from the double-digit pace of the past four years. Centres where the local economy is more diversified and homeownership demand remains strong will record double-digit price gains again in 2008.
Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt. Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. The Canada Mortgage and Housing Corp. (CMHC), a Crown corporation, as well as private insurers provide mortgage insurance. The government backs CMHC and also private mortgage insurers so the private insurers can compete with CMHC.