The Vancouver market has been a little puzzling this year. Here’s a simple breakdown of what’s going on and what it means for you.
Sales are slower than expected
At the start of the year, many thought lower mortgage rates would bring more buyers. Instead, sales have stayed quiet through the first half of the year.
More homes for sale
Sellers kept listing their properties, which has created one of the highest levels of inventory we’ve seen in years. This is actually good news because more inventory means more choice for buyers and less pressure on prices.
A good time for buyers
With plenty of homes on the market and sellers becoming more flexible on price, buyers have more negotiating power than before. You might even see conditions like “subject to sale” return, which haven’t been common in Vancouver for years.
Key stats to know
Days on market: Homes are sitting longer before selling.
Sale to list price ratio: Homes are now selling closer to 96 percent of the asking price, compared to the usual 98 percent. On a $2 million home, that’s a difference of about $40,000.
Looking ahead
Experts believe the second half of the year could see a pickup in sales as more buyers take advantage of lower rates and higher inventory. The market isn’t racing ahead, but it does seem to be building momentum.
Bottom line: Right now is a healthy market for buyers. If you are thinking about making a move, this could be the window of opportunity you’ve been waiting for.
Bank of Canada Holds Rates Steady: What It Means for You
On July 30, the Bank of Canada announced that it is keeping its lending rate at 2.75%. Here’s what you need to know:
Key takeaways
The lending rate stays at 2.75%
No immediate change for mortgages, loans, or other borrowing costs
Economists predict rate cuts could come in 2025, possibly lowering the rate to 2.25% by year-end
The next rate announcement is scheduled for September 17
Why the rate is staying put
The Bank of Canada pointed to ongoing uncertainty, a stronger-than-expected economy, and inflation pressures as reasons for keeping rates unchanged. In short, the economy isn’t weak enough yet for them to feel confident cutting.
What this means for Canadians
Variable-rate mortgages and loans: Payments will stay the same for now.
Fixed-rate mortgages: No changes until your renewal, since these depend more on bond markets.
Borrowing in general: Nothing gets cheaper yet, but nothing is more expensive either.
Looking ahead
Economists expect two small rate cuts in 2025, which could bring the rate down to 2.25%. If that happens, borrowing will become a little cheaper and may give housing demand a boost later in the year.
Bottom line: For now, it’s steady as she goes. Rates haven’t dropped yet, but relief could be on the way in 2025.
Let’s Connect!
Whether you’re looking to buy, sell, or just stay informed, I’m here to help you navigate the Vancouver market with confidence.
604-445-7082
jdeocampo@rennie.com
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