March came in like a tiger and went out like a lion with housing sales doubling over the last two weeks of the month and a total of 2,535 sales up 38% from a month earlier and a startling 146% rebound from the 1,030 transactions in January 2023.
The Bank of Canada’s next interest rate announcement is scheduled for April 12. It’s widely anticipated that the Bank will hold the key overnight rate at 4.5%. Also, after the April break is when lenders tend to come out with their spring mortgage promotions, which should help with the downward pressure on rates.
Fixed-rate mortgage rates are already falling. As of March 30, the lowest rates in Canada were for five-year fixed-rate mortgages at 4.29% for insured mortgages and 4.59% for uninsured home loans, according to a survey by rate.com.
Also, April 1 is the official launch of the new federal Tax-Free-Savings Account for home buyers. It allows a young couple to save up to $80,000 for the down payment on their first home on a tax-free basis. Not a huge incentive but enough to encourage some tenants into ownership.
Everything is up except listings and even they will not likely stay this low for long as more sellers recognize prices are firming and buyers are back.
The total number of homes listed for sale at the end of March in Greater Vancouver was 8,617, an 8% increase compared to March of last year. Don’t be surprised to see a sudden spike in sellers this spring, since March had the lowest number of new listings for that month since 1995.
For those who are considering a sale, now is the time to list your property before the rush of new listings begins and competition for buyers increases.
Find your pace in this evolving market that is gaining pace and strong growth! As usual a tactical approach can never be underestimated as there is a tremendous demand and limited supply!
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