The end of last year continued a theme that we have seen all year long of two very different markets. The detached markets appears to be in one of the strongest buyer’s markets we’ve seen in a long time ..it is fairly slow with lots of choice and townhomes and condos continuing to be extremely active.
Simply put The lower the price point, the hotter the market – regardless of product type.
All levels of Government are piling on top of the housing market attempting to suffocate this crazy price growth. Bold measures have been taken, including a foreign buyers tax, an empty homes tax in Vancouver and a wide sweeping mortgage stress test. While we wait and see how the housing market absorbs these body shots all we can do is speculate.
The new mortgage guidelines will reduce borrowing power by roughly 15% and borrowers will have to get even more creative. Borrowers are expected to stretch amortizations and more desperate first time buyers are expected to tap the Bank of Mom & Dad. Research suggests that 50-70% of new home buyers are receiving help with their down payment.
Sales will likely be challenged this year via higher mortgage rates, the guidelines and slower employment growth. The number of units under construction relative to population growth is in B.C. the highest of any province, pointing to a good amount of supply in the pipeline.New listings, which hit a decade low in January were 30% below the ten year average. Sellers remain hesitant to sell with fears of missing out on further price gains.
Inventory levels are near record lows, falling 33% on a year over year basis in January.
One of the best opportunities i see in this market is for people that have a condo or townhouse and want to move into the detached housing market. Never before has the gap been so small between the condos/townhouses and the houses. So this is a good opportunity if you want to make that move.
Also, If your mortgage renewal is up, which apparently many peoples are, don't just accept your current lender's rate. You may have options that your lender doesn't want you to know about.
I work with an excellent mortgage broker. Her name is Marci Deane at Mortgage Architects 604- 816-8950 The call will cost you nothing. She will help you make the right choice with the best rate at your renewal time.
If you have any questions or want to talk about your plans, give me a call or message me at 604-240-18979.
Thanks for watching and see you next time.