Welcome back to the "real world". I hope you enjoyed your Summer and you're adjusting to your September routine... I've seen so many pics of kids going back to school, can't believe another year has come and gone!
If you're curious about the latest market news, here's what's been happening and here's our predictions of what could happen in the near future:
Our Summer market held strong in most areas. Condos and townhouses most certainly drove the market with sales of detached homes slowing some. Attached properties below a million dollars were HOT. Multiple offers at every turn, sigh. It was fantastic when we were on the listing side but it made things more difficult for our buyers, who had to be patient and persistent. Thankfully, in almost every multiple offer situation our clients were given the first right of refusal by the listing agents. As long as the prices stayed within our clients price range, we usually were able to secure the home. Years and years of creating GOOD, STRONG relationships with other reputable agents really pays off. Agents want to work with us and our clients, and our buyers often save money (and get moved to the front of the line) because of this.
Detached homes remained healthy but entered a more balanced market. Inventory levels crept higher as sellers held strong on their prices and buyers refused to battle it out in multiple offers, or pay a penny more than market value. The sense of urgency we've seen over the past 3 years has lessened.
We feel our market will remain strong in September and October - especially for condos, townhomes and detached homes under 1.5 million. Come November/December and early next year, we’re a bit uncertain of the outlook. Why? There are a lot of factors that could come into play:
#1 Tighter Credit Regulations - a new rule from the Office of the Superintendent of Financial Institutions could target home buyers with down payments of more than 20 percent with a tough new stress test: they would have to qualify based on a rate 200 basis points above their contract. For example, a buyer looking to secure a mortgage with a 20% down on a million-dollar home at 3% interest rate would have to prove they could pay up to $4,652 per month instead of the $3,786 on their contract — a difference of $866 per month.
#2 Higher Interest Rates - let's be honest, they are still amazingly low; however, if they bump again in November and the #1 (above) comes into effect, our market will be negatively impacted, especially the detached market over 1.5 million.
#3 Proposed Tax Changes to Incorporated Businesses - As proposed, it will have a huge impact on Doctors, Farmers, Dentist, any incorporated small or medium business that employs people will be affected. This could hurt our economy and result in layoffs, closing of businesses, reduced spending etc.
THE GOOD NEWS:
We live in a really desirable place. Land is limited, and demand remains high. Our population continues to grow. Investors are still buying, presales are still selling out and our Canadian economy has a positive outlook.
WHO’S GOT IT GOOD RIGHT NOW
If you’re thinking of upsizing from a townhome or condo to a detached home, now is the time! You can sell your condo for a premium in a market that heavily favours sellers and then buy in a balanced detached home market. Also, we're still finding presale deals out there and they're still proving to be good investments if the launch pricing is sharp.
Reach out if you’re interested in a presale property. There are a number of developments launching in North Van, East Van and Burnaby that we are watching closely. We will have true VIP access to these presales which means best selection and prices for you. Next to launch is phase 3 of GREEN in Moodyville, North Van. please call if you are interested. One bedrooms in the $490,000 range, 2 bedrooms starting around $630,000.
Thanks again for the referrals, 85% of my business last year was referral based, absolutely incredible.