April Newsletter 2011
April 2011 Newsletter
Market Update
Sales & Listings: Conditions favour sellers at the moment, but we’re seeing differences in home-price trends and overall activity depending on the region and property type.
Factors that are affecting the real estate market in 2011: Foreign Buyers have assisted in increasing the market value. The removal of the Home Equity Line of Credit & reduced amortization period also contributed to an increase in activity for the first quarter.
Today’s market:
- We are still seeing a strong demand out there but limited supply.
- Residential unit sales through the Multiple Listing Service® (MLS®) in BC are forecast to increase 8 per cent to 80,900 units in 2011, and climb an additional 4 per cent to 83,950 units in 2012. A record 106,000 transactions were recorded in 2005
Financing & Mortgage Rate Forecast:
- Bank of Canada Prime rate remains at 3%
- Mortgage rates have thus far evolved in-line with December 2010 forecast, with the 5-year fixed rate reaching 5.44 per cent and the 1-year rate hitting 3.50 per cent in mid–February. Mortgage spreads (the difference between a fixed mortgage rate and the yield on Government of Canada bonds) have returned to historically normal levels Therefore, the path of future mortgage rates will be largely determined by changes in government bond yields, which have moved significantly higher in recent months but are currently being pushed lower by world events. We anticipate that, barring a growth depressing and sustained rise in oil prices, yields will move gradually higher throughout the year as markets price in improving economic conditions and higher inflation expectations. Rising yields will in turn lead to higher mortgage rates, likely in the realm of 4.35 per cent for a 1-year and 5.90 per cent for a five-year fixed rate mortgage by the end of the year.
Buying or selling? Call me today and I would be happy to discuss market conditions in your neighbourhood.
William Lew
604 862 1966 (direct)
Dexter Associates Realty
View Daily Listings by visiting my home page www.westsideliving.com
This communication is not intended to solicit property already listed.