CMHC’s Housing Market Outlook – Fall 2017

The Fall 2017 edition of CMHC’s Housing Market Outlook – Vancouver and Abbotsford is now available and can be accessed by clicking on the link below.

http://www.cmhc-schl.gc.ca/odpub/esub/64363/64363_2017_B02.pdf

-Modest price increases, more activity in the condo sector than houses and continued high increase in new product

-Rental demand is expected to remain high through the forecast period, buoyed by positive net migration and a sustained imbalance between incomes and home prices in the metropolitan area.

"I am quite pleased with your services, and with working with you as an individual. I highly reccommend you to anyone I know (and will continue to do so)…It is unfortunately becoming rare these days for many companies to understand the meaning of quality customer service, business integrity, thoroughness, and care. We are so happy we found you and your group."~R. Westbrook, California, USA

Bank of Canada Interest Rate Announcement – BCREA

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 1 per cent. In the press release accompanying the decision, the Bank noted that inflation has edged up slightly and is expected to return to its target of 2 per cent in the second half of 2018 while economic growth is forecast to slow in the final six months of this year following a very strong first half. 

The Bank emphasized that it will be cautious in making future adjustments to its policy rate as it assesses the sensitivity of the economy to higher interest rates.

There are several factors influencing the Bank’s decision to move to the sidelines. Recent economic data points to a slowing of growth from the soaring heights of the first half of 2017. Moreover, inflation remains muted and newly announced tightening of mortgage regulations will have a significant impact on households, particularly in a rising mortgage rate environment. We expect that the Bank will take a wait and see approach over the next few months as the impact of its previous rate tightening takes hold.



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I have been using Nicholas’ services since 1988, first as a realtor and later as a rental suite manager. I have also recommended his services to numerous friends and clients who thanked me for referring him. The words they all used were “knowledge” and “integrity”. Nicholas is one of the rare members of this profession who prefers long-term client relationship to quickly collecting a commission. This was the case when he discouraged me from purchasing properties he knew were not right for me, even though this meant additional work for him. And did I mention that he is also well educated and great company"~ Zuzana Kulhánková
 Translation, Localization, Subtitling

Government adds new qualifying requirements for uninsured mortgages – REBGV

Effective January 1, 2018, first-time home buyers who don’t require mortgage insurance — those with a down payment of 20 per cent or more — must qualify for their mortgage at a higher rate.
This new stress test won’t apply to people renewing their uninsured mortgage.
Canada’s Office of the Superintendent of Financial Institutions (OSFI) announced these rule changes today. Draft changes were released in the summer for public feedback. (The Canadian Real Estate Association submitted this response to the draft rules in August on behalf of REALTORS® across the country.)
Under the new rules, the minimum qualifying rate for uninsured mortgages will be the greater of the Bank of Canada’s five-year benchmark rate or the contractual mortgage rate plus two per cent.
OSFI will also require lenders to enhance their loan-to-value (LTV) limits and restrict certain lending arrangements designed to circumvent LTV limits.
These changes apply to all federally regulated financial institutions.
This is the seventh time since 2008 that the federal government has made mortgage policy changes.
Read the government’s full announcement here.
Economic analysis from the BC Real Estate Association (BCREA):
“The impact of the new stress test requirement will be to lower the purchasing power of households by up to 20 per cent. Like past tightening of mortgage regulations, we anticipate that the market impact will be sharp but temporary. In the past, we’ve seen home sales decline in the three to nine months following the implementation of tighter mortgage lending standards, with the severity of the impact fading within one year. However, these new regulations impact a larger pool of mortgages and so the impact could be more significant than in the past,” said Cameron Muir, BCREA chief economist



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Leadership qualities that set an example for others to aspire to. Building a lasting foundation of integrity in the marketplace. Nicholas, is a model for anyone to follow. Balancing a healthy lifestyle, with a successful business model in 2015." ~Penny A.P. Martin 
Strategic Consultant, Private Practice

Housing Market Update – BCREA

BC Real Estate Association (BCREA) Chief Economist Cameron Muir discusses the September 2017 statistics.

"We have been very happy over the years with the thorough and very personalized service your company provides."~ T.B., Kelowna BC

Stats Centre Reports – September 2017 – REBGV

 

 

 

 

 

 

 

The latest Stats Centre Report for Metro Vancouver is now available!

To view it, click here.

To view the latest Stats Centre Report for Vancouver East, click here.
To view the latest Stats Centre Report for Vancouver West, click here

"I am quite pleased with your services, and with working with you as an individual. I highly reccommend you to anyone I know (and will continue to do so)…It is unfortunately becoming rare these days for many companies to understand the meaning of quality customer service, business integrity, thoroughness, and care. We are so happy we found you and your group."~R. Westbrook, California, USA

Mortgage Rate Forecast – BCREA

Since our second quarter forecast, our projected rise in mortgage rates has occurred and accelerated, as the Bank of Canada—spurred by economic growth that far exceeded its outlook—turned suddenly hawkish. The Bank surprised with a 25-basis point increase in July and then again in September, taking its overnight rate back to 1 per cent, where it was before the precipitous drop in oil prices that shocked the Canadian economy in 2014. After the July interest rate hike, markets widely expected at least one additional rate increase in the fall, and so bond markets and lenders had already priced in the September increase by the time it occurred.

Over the past 12 months, the 5-year bond yield has risen 110 basis points to a three-year high of close to 1.8 per cent, prompting a 60-basis point increase in 5-year discounted mortgage rates to above 3 per cent for the first time since 2014. The 5-year qualifying rate has risen just 20 basis points to 4.84 per cent. The latter is an interesting development, because it is the first increase in the posted rate since stricter qualifying rules for insured mortgages were imposed last fall. Rising mortgage rates may complicate the introduction of further mortgage qualifying restrictions slated for October, this time tightening lending for uninsured mortgages.

We anticipate that the Bank of Canada will hold off on further rate increases this year and assess how higher rates are impacting the economic and inflation outlook. However, in the Bank’s recent communications, it has very clearly left the door open for more aggressive tightening should the current torrid pace of economic growth continue. Our baseline forecast is for the 5-year fixed mortgage rate offered by lenders to average 3.15 over the fourth quarter, eventually rising to 3.44 by the end of 2018. The posted 5-year qualifying rate is forecast to reach 5.14 per cent by the end of next year.

For the complete news release, including detailed statistics, click here.

"I value Nic’s opinions as they have always been realistic, honest and reliable and I thank him for sharing his views with us."~ T.Chiang, Vancouver

BC Home Sales Robust and Unchanged in August

The British Columbia Real Estate Association (BCREA) reports that a total of 9,162 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in August, an increase of 2.4 per cent from the same period last year. Total sales dollar volume was $6.2 billion, up 22 per cent from August 2016. The average MLS® residential price in the province was $678,186, a 19.1 per cent increase from August 2016.

“BC home sales in August remained unchanged from July, on a seasonally adjusted basis,” said Cameron Muir, BCREA Chief Economist. “Strong economic conditions are underpinning demand. However, rising home prices combined with upward pressure on mortgage interest rates is expected to temper demand over the balance of the year.”

Year-to-date, BC residential sales dollar volume was down 15.9 per cent to $51.8 billion, when compared with the same period in 2016. Residential unit sales declined 15.0 per cent to 73,267 units, while the average MLS® residential price was down 1.1 per cent to $706,839.

For the complete news release, including detailed statistics, click here.



"

I have worked with Nick and His staff since 2005 and found him and his staff to be the BEST Property managers in Vancouver… My downtown clients swear by him as well…. Reliable, Dependable 1st Class

. " ~ Ray Harris Re/max Sabre Realty
, PAST Board Chair and President at Real Estate Board of Greater Vancouver

August 2017 Housing Market Update – REBGV

REBGV President Jill Oudil gives a summary of the August housing market statistics and takes a closer look at property sales by price.



"

I have worked with Nick and His staff since 2005 and found him and his staff to be the BEST Property managers in Vancouver… My downtown clients swear by him as well…. Reliable, Dependable 1st Class

. " ~ Ray Harris Re/max Sabre Realty
, PAST Board Chair and President at Real Estate Board of Greater Vancouver