03 Oct 2024
OCTOBER 2024 FOUNDER’S MESSAGE
As the leaves begin to change colour and the air turns cooler, Metro Vancouver’s real estate market is active. With many excellent properties available, buyers have a wide selection to choose from this fall.
There are currently 31.2% more properties listed for sale on the Multiple Listing Service (MLS) in Metro Vancouver compared to the same time last year. This is 24.2% above the 10-year seasonal average.
Attached home sales in September 2024 increased by 7.4%, while the benchmark price for all residential properties in Metro Vancouver is currently $1,179,700.
Last month, the Bank of Canada reduced its policy interest rate by another quarter percentage point to 4.25%. This is the third consecutive policy rate cut in a row and more are expected this year. In August, inflation fell to the bank’s target of two percent. This is positive news for Metro Vancouver’s real estate market as lenders reduce borrowing costs.
Canada’s prime rate is currently down to 6.45% compared to 7.20% last year. This is influenced by the Bank of Canada’s policy interest rate cuts. Canada’s prime rate impacts variable-rate mortgages and lines of credit. Analysts are forecasting increased activity this year in Metro Vancouver’s housing market as buyers become increasingly motivated by the bank’s June, July and September rate cuts.
Now is an ideal time to contact one of our highly knowledgeable advisors for a complimentary comparative market analysis. With lower rates and high inventory levels, autumn is a great time to consider your real estate goals. Our advisors understand both local and global real estate markets and will empower you to make the best decisions possible.
We will also help you navigate the recent changes to Canada’s mortgage rules. Last month, the federal government released details of its mortgage reform plan. The two key points include changes to eligibility for smaller down payments and extended amortization periods.
By mid-December, the existing one million price cap for insured mortgages will increase to 1.5 million. The second major change includes expanding the eligibility for 30-year amortizations to first-time buyers and those purchasing new builds. Previously, the maximum allowed amortization was 25 years for those with down payments of less than 20%. With these significant changes, home buyers will now be eligible for lower down payments and extended loan repayment periods. These are some of the most impactful mortgage reforms since 2012.
Metro Vancouver’s rental market is currently very busy. Consider switching to VIRANI’S Rent + Manage. We offer clients a one-stop solution to all your real estate needs. Our experienced advisors will handle all your property management requirements, whether leasing an individual property, purchasing a selection of homes or buying an entire building for your investment portfolio. Property management services include finding, vetting and procuring the best tenants possible, rental leasing and managing your furnished or unfurnished property on a daily basis. We maintain your property so you will get the best return.
Our city’s skyline is changing with Monogram, an amazing 49-storey mixed-use tower at Burrard and Davie. Monogram will offer a collection of 260 one-, two- and three-bed residences with sweeping views of the North Shore mountains and cityscapes. A bold statement in design and innovation, Monogram will also include 50 rental units. Marketed exclusively by VIRANI, this project is launching soon. We welcome your calls so you can be one of the first to receive the best opportunities in this extraordinary new addition to Vancouver’s downtown neighbourhood.
As the leaves change to fiery crimson this month, there is currently a lot of exceptional inventory to choose from. Economists are forecasting a strong housing market for Metro Vancouver in 2025. Analysts also predict annual average home prices will rise between 3.6 % to 7% across Canada next year due to falling interest rates and high demand.
This fall is a great time to find your dream home. There are a lot of wonderful options, including the many great offerings exclusive to us. While considering your next move, I hope you are able to enjoy all the beauty this early autumn has to offer here on the West Coast.