Today I want to talk to you about the interest rate increases and give you a quick update on our market for the month of April.
Did you notice that interest rates increased? TD Bank, CIBC, National Bank, and RBC just increased their posted rate by up to 45 points.
Meanwhile, other banks such as Scotia Bank and BMO didn’t follow the trend. Interest rates are set to increase twice more this year, so expect another half percent on top of the current posted rate.
In market news, the Metro Vancouver housing market saw fewer homebuyers and more home sellers in April, creating a 17-year low.
For single-family homes, the inventory has increased over 17% with an active-to-sales ratio of 14%. This indicates that prices for single-family homes are starting to decrease. Compared to last April, single-family homes in Vancouver have been selling at a 6% reduction.
For the condo market, the active-to-sales ratio is at 45% with a year-over-year price increase of 23.7% and an increase in inventory of 21%. The active-to-sales ratio for this month has dropped 33% from last year. This is because the increase in inventory is meeting some of the overall demand, which is decreasing. The price for condos are still increasing, but not as quickly as past years.
In the Fraser Valley, condo prices have risen 36.2% compared to last year. This is because Fraser Valley offers better prices compared to Metro Vancouver.
In conclusion, if you are a buyer in today’s market, we recommend you speak with either Scotia or BMO to see what type of mortgage product they can offer. You may be able to save more money and buy a bigger home.
If you are thinking about selling, please reach out to me. Since market prices are always changing, I would love to speak to you about our current market.