Market Update

Oct 16, 2020

As we are one month into fall, the real estate market in Vancouver continues to show its resilience to the unprecedent economic and health challenges we are facing. Most experts believe the market is being driven by the historically low mortgage interest rates, pent-up demand from the early days of the lockdown and an increasing desire for suburban living from young families and singles after living through the pandemic in a condensed urban setting.

Mortgage rates remain historically low for both the 5 Year fixed and variable rate. Based on the recent comments by the new governor of Bank of Canada (BoC), Tiff Macklem, we are unlikely to see any increase of BOC’s overnight rate until late 2022 or early 2023 when the inflation rate is projected to be at 2%. The overnight rate is currently sitting at 0.25%. This is certainly a good time for first time Home buyers or young families to consider upsizing their home while property prices are relatively stable compared with more heated markets in the past and borrowing costs are approximately half what they were just one year ago.

As always, please feel free to contact our office for a quick pre-approval. We can answer most of your qualification questions with a simple twenty-minute phone call.