Not sure about buying real estate? With low interest rates and plenty of inventory, this summer could be the right time to buy.
At the end of April, the Bank of Canada held its overnight interest rate at 1.75 percent. Because most banks base their mortgage rates (and other lending rates) on the Bank of Canada’s benchmark, this is good news for Canadians looking borrow money for a home—especially for first time buyers.
While some economists believe the overnight rate will stay put through the summer, there is a chance it could increase. The rate has been static since last October, when the growth of Canada’s economy took a sluggish turn.
Looking ahead, the decision makers at the central bank are optimistic, and believe that keeping the rate at 1.75 percent will help the economy pick up the pace in second half of 2019 and into 2020. If this happens, expect rates to rise.
In the meantime, a stable benchmark rate and a buyer’s market throughout Metro Vancouver, including Langley, make this summer the right time to get into the housing market.
May 2019 Real Estate Sales Numbers
According to the Canadian Real Estate Association (CREA), home sales in Greater Vancouver during May 2019 were almost 23 percent lower than the 10-year average for the month. Also, inventory continues to grow. The CREA reports 14,685 homes listed in May 2019; that’s 30 percent more than May 2018.
In the Fraser Valley, May sales were 18 percent lower than the 10-year average for May, according to the Fraser Valley Real Estate Board. Both Greater Vancouver and the Fraser Valley, however, experienced better sales numbers in May compared to April, which was particularly slow for a month that often marks the beginning of the spring real estate uptick.
What Does This Mean for Buyers?
For those aiming to get into the real estate market this summer, extra inventory offers more choice and added bargaining power. Many sellers are looking at last year’s prices and are passing on lower offers. All the while, more homes hit the market and the advantage continues to shift to buyers.
While the days of bidding wars and showing up to open houses with offers in hand are, for the time being, in the rear view mirror, housing in Metro Vancouver remains expensive. Nonetheless, if you’ve been waiting to get into the market, this summer presents an opportunity. Stable, affordable rates combined with ample listings make this summer the right time for you to get into real estate.
Notary Services for Real Estate Transactions
When it’s time to finalize the paperwork, get in touch with Zancope Notary Public. We offer competitive rates on a full range of notary and non-contentious legal services, accompanied by top-notch, client-focused service.
We can guide you through the process of buying and selling, refinancing, and much, much more. If you want to learn about the real estate market in Langley or the rest of Metro Vancouver, contact us today.
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