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We are seeing 22% of all home sales in the Fraser Valley receiving multiple offers, $59,000 over list! On average, home prices are up $5,600 this year.
Our 19% Sell-Through Rate is normal for this time of the year. In summary, we forecast that home prices will increase by 1-3% until June and then stabilize.
Canada’s 2023 Economic Journey and the future
Inflation and Interest Rates: What’s Going On?Inflation in 2023: At the beginning of 2023, the inflation rate was 5.9%, but it gradually dropped to 2.9%. Both the Bank of Canada and the US Federal Reserve want the inflation to be around 2%. However, it now seems that achieving this goal is impossible due to Government's large deficit financing (Printing Money) and increased taxes thus creating much of that inflation.
Listen / watch our Real Estate Podcast with Glen Kelleway from Mortgage Architects on Mortgage Rates and Real Estate Forcasts.
The New Normal: Interest Rates
Remember those super-low interest rates? Well, they’re not coming back. While there are plans for minimal prime rate cuts this year, don’t hold your breath for any bigger drops in your mortgage rates. Some may choose to buy a home now while prices are lower and take a variable rate, with plans to lock it in later. 🏠💰
It’s a delicate balance, isn’t it? Deciding whether to seize the current opportunity or wait for potential rate changes.
Now, let's focus on what lies ahead in 2024:
Yes the Canadian Prime Rate is still at 7.25%. Today the banks are anxious to lend out their extra mortgage money, and with good old competition, it has resulted in lowered fixed rates. Some 5-year fixed mortgages have now dropped to 5.14%
(that is $589.60 payment for each $100,000 mortgage.)
, what this all means for you, family and friends:
We forecast that the real estate market will remain stable throughout the year. Finally, we have normal times without the influx of 3 Trillion dollars of foreign investment. This is now a time where people can plan their moves with a sense of security. If you thinking of buying, a deal can be had as many homes did not sell in the last 6 months and have sharpened their prices!
Today, the listing inventories are still quite low. So if you are thinking of selling, we will get you multiple offers with our Vancouver Usually-All -Cash Buyers and that top dollar!
Lisa and I are here to assist whenever you're ready.
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