The Spring market is upon us – despite the weather! The market can be considered more balanced, but with continued low supply of apartments and townhomes, and relatively low inventory of homes under the $2M mark in North Vancouver–we can see a little heat coming as we head into April & May. We’ve always preferred working in a market where there is more balance – giving both buyers and sellers time to make well informed decisions when their largest asset is concerned – so we must say that we prefer the first quarter of 2017 to that of 2016.
In Lower Lonsdale, median detached, re-sale home prices have hovered between $1.5M and $1.6M over the past year, and a number of sales have dropped between June & January, but have just started to recover in March. Days on Market was about 8 for most of 2016, now it’s 14.
In the townhome market, median price is off about 10% from the peak of last year, but is recovering as well. Inventory here is very slim with under 10 townhomes for sale in any given month for most of 2016 and only 4 today.
Apartments are where all the action is. After a 6 year period of a relatively flat market (2009–2015), we’ve seen inventory not able to keep pace with demand (yes, despite all the new construction!) and many cases of competing offers in almost every product type. Median price rose almost 35% from January to December, 2016.
We are keeping close track of listings, sales, and interest rates (today’s best five year rate is about 2.69% – but the qualifying rate is much higher). As of March 15, 2017, there is news from the USA that the US Federal Reserve’s Open Market Committee (the Fed) raised its target overnight rate to between 0.75 and 1 per cent this morning. This may put upward pressure on long-term rates in both the US and Canada. In all, BCREA “expects the consequence of these actions will be higher Canadian mortgage rates by the end of the year”. A deeper analysis of these trends is contained in BCREA’s first quarter Mortgage Rate Forecast is available on our blog.
It’s definitely time to speak with a Mortgage Professional if this is your first purchase, or if you haven’t moved in a while! You can meet some well respected and trusted pros right here.
Pondering listing your home for sale? NOW is a great time to start the conversation. Looking to buy? Definitely time to speak with us & see what the landscape looks like today so that you can time your purchase as best as possible.