Yesterday the Bank of Canada announced that interest rates will go up another quarter percent and its the forth time they had increased it this year with another potential 3 increases for 2018. The dates are in Sept 5, Oct, 24 and December 5. As you can see with every increase they did it was a quarter percent. Here is the interest rate history from the Bank of Canada website. The BOC mentioned that they want to increase the rates up to “NORMAL LEVELS”, so what does that mean? My best guess is that the BOC would eventually increase interest rates up to what it was when we had our two most recent financial downturns in 2001 and 2008. So rates can go up as high as 4.0 % to 5.5 %


So what is a a quarter percent in real dollars? A quarter percent increase on every $100,000 borrowed is $20 extra per month. With a potential 3 extra increases that can be an extra $60 per month. Thats like a gym like a gym membership. Now things are starting to add up especially since most home owners owe more than $100,000. If you are a homeowner and you are on a variable rate mortgage you should begin to think about locking in. If you are a home buyer expect qualifying for a mortgage to be just a bit more difficult again. The Bank of Canada Stress test rate should also go up by another quarter point. So if you make a $100,000 per year you should only qualify for about $390,000 thats about a $10,000 decrease in purchasing power.

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You’ve probably heard the news in the headlines already. Detached home sales are down by a whopping 44% in Vancouver. The 14% sales ratio we have puts us firmly in a buyer’s market when it comes to these homes. We’re seeing the exact opposite occur in the condo market. To learn more about both, watch this short video.
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A Snapshot of Our Current Market and a Look at Our Recent Tax Changes 

Today I want to recap our February 2018 market and share the latest on what’s happening with our BC budget. Overall, last month’s sales across Metro Vancouver were down 14.4% below the 10-year February sales average. The active-to-sales ratio was 14% for detached homes, 37.6% for townhomes, and 59.7% for condominiums. Because of the new tax changes introduced by the BC government, these statistics could look quite different for the rest of 2018. To find out more, watch my latest video.
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Now that fall is upon us, I’d like to take a look back at how our Central Vancouver real estate market fared over the month of September.

To start off, the detached housing market had a 14% sales-to-actives ratio. This is about 1% less than last month.

The reason this market hasn’t seen any increase in prices or activity is that total listing inventory has increased 36% since August. These factors are a strong indicator that we’re in a buyer’s market.

Let’s turn our attention to the condominium market. In that market, there was a 59% sales-to-actives ratio. This is about 11% less than last month.

“The condo market is still red hot.”

The condo market is still red hot. Inventory is about 29% lower than last year and there are a lot of multiple offer situations taking place.

With all of this being said, I’m starting to notice my clients looking to sell their condos and buy detached homes instead.

Condo prices can only rise so much and the detached housing market is experiencing a temporary slowdown, so this is a great strategy.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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