Market update from April 2010

We are in the middle of a somewhat typical spring market with lots of buyers meeting up with lots of sellers. Jake Moldowan, Ppresident of the Real Estate Board of Greater Vancouver (REBCV) stated that with “…a sales-to-listing ration of 23%, we see a healthy balance between buyer demand and seller supply in the market place.”  March is typically the start of our busiest time of year.  Residential property sales in the Greater Vancouver Area reached 3,137 this March which is 38.5% higher than March, 2009, only 4.7% higher than March, 2008 and 12.4% less than March, 2007.

The Housing Price Index (HPI) over the last 12 months has increased 20.3% in the Greater Vancouver area to $584,435.  In March, 2009, the HPI was $485,845 and the last highest point was in March, 2007 when the index was at $568,411.  That means that we are now 2.8% than the previous high.

At the end of March we also saw long term interest rates start to move up. Mark Carney (the Governor of the Bank of Canada) made a statement that the Bank of Canada would raise its short term interest rates sooner as opposed to later.  His announcement was based on higher than expected inflation numbers.  There has been much talk of rates holding until July, however, Carney has always held the position that if inflation gets too high he might take action sooner. (This would have an effect on short term rates and prime rates.)

 If you are thinking of making a move in real estate and have not yet talked to a mortgage broker to get a reserved  rate on hold do it now!  Mortgage rates are likely at the bottom they won’t go down from here!