According to the Real Estate Board of Greater Vancouver, March 2014 home sales increased 12.5% from March 2013 but were 17.2% below the 10-year sales average for the month.
The sales-to-listings ratio is 18.2% in Greater Vancouver. This indicated a balanced market.
REBGV president Ray Harris said “We continue to see steady and stable market conditions across the Greater Vancouver housing market; there has been a consistent balance between home seller supply and home buyer demand in our marketplace over the last year.”
“Home prices in the region have experienced incremental gains in most areas and property types over the last 12 months,” Harris said. “It’s important to remember that this is a diverse marketplace and trends will vary depending on area and property type.”
On the mortgage side, some chartered banks have lowered their posted five-year mortgage rate to 4.99% in the first quarter of 2014. This is the first time the 5-year posted rate has ever been below 5% and it comes at a time when consumer and mortgage credit growth has been slowing. Therefore, it is likely a promotional product from the banks to boost sales for mortgage loans and to compete for first-time buyers in the Spring season. The lower rates also offered some compensation for the recent increases to the CMHC mortgage insurance premiums.
However, the BC Real Estate Association is forecasting that the record low rates will be temporary and the Canadian economy is set to post stronger growth. The lower Lonnie is also aiding to spur inflation. They predicted that once positive news on the economy and higher inflation sets in, the rate would likely increase.
Below is the current mortage rate provided by Dominion Lending Centres: