BC Housing and Mortgage Insights Newsletter Feb 14, 2024
Your guide to navigating BC's evolving mortgage & housing landscape. New insights every week. Dive into stabilizing property prices, groundbreaking consumer protection laws, and record-setting sales. Uncover how new legislation and the BCREA's Housing Monitor Dashboard are reshaping real estate in British Columbia for buyers, sellers, and professionals alike. Subscribe
British Columbia's Housing Market Stabilization
British Columbia's residential property prices have stabilized, with Metro Vancouver experiencing minimal fluctuations. The overall market is characterized by modest changes in property values, with most homeowners seeing adjustments within the range of -5% to +5%.
BCREA's Housing Monitor Dashboard
The BCREA has developed a Housing Monitor Dashboard to provide real-time data on BC's housing market for REALTORS® and the public. It includes data on active listings, new listings, home sales, average sale price, Home Price Index (HPI), Sales to Active Listings Ratio (SALR), construction data, rental market averages, and borrowing costs.
Housing Minister Banks on Canada Rate Cuts to Spur Building Boom
Canada’s housing minister, Sean Fraser, believes that lower interest rates will encourage builders to increase their activity, addressing the country’s housing supply shortage. Despite concerns about pent-up demand and rising home prices, Fraser emphasizes that lower borrowing costs should lead to an increase in housing supply. The government remains committed to building more homes, regardless of fluctuations in interest rates.
Canadian Bond Yields Surge, Mortgage Costs To Climb Ahead of Spring Market
Canadian real estate markets experienced a surge at the end of the year due to cheaper mortgage debt. However, the recent increase in Government of Canada (GoC) bond yields is expected to drive mortgage rates higher ahead of the spring market. While falling yields initially helped lower fixed mortgage rates, the recent surge in bond yields may impact affordability and home sales.
Tepid Economic Growth Forecast for 2024
Economists predict modest economic growth for Canada in 2024. While some anticipate a slight increase in real GDP, others foresee a mild downturn, including negative growth in certain quarters. Interest rate cuts are expected to play a role in fueling recovery later in the year, but uncertainties remain due to geopolitical risks and inflation concerns.
