The Bank of Canada’s latest report takes a deeper look at the impact COVID-19 is having on the Canadian financial system, including the housing market.
“Income uncertainty and physical distancing have led to considerably slower activity in housing markets, with sales and listings both down sharply,” the report states.
“Reduced liquidity in the housing market could add pressure to household finances since households may find it increasingly difficult to sell their homes. Most households now expect house prices to decline over the next 6 to 12 months."
Are you looking to purchase or sell a real estate? Before entering the process or signing any paperwork in this regard, make sure you watch this video FIRST.
According to British Columbia Real Estate Association released on May 14 home sales across BC fell about 59 in April relative to the same month in 2019 reflecting restriction for COVID-19 related guidelines.
However, as these measures are relaxed, the market will gradually bounce back to normal situation. Watch the video for more details or contact Team Fazi at 778-899-8829 for any inquiry about, buying or selling strategy in COVID-19 situation.
Total home sales and total listings in April 2020 were 40% and 60% lower, respectively compare to the same month in 2019. Watch the video for a brief overview: Call Fazi for detailed info and ask us about COVID-19 purchase and sale strategy at: (778) 899-8829
In this video I explain the impact of COVID-19 driven recession on the real estate market in Vancouver. Please let me know, if you have any question in regards to buying or selling a home in this market.. You can also call us anytime if you have question in regards for carrying-out a safe transaction and avoiding legal and technical pitfalls.
CALL: 778 899 8829
Bank of Canada Interest Rate Announcement:
On December 4, 2019, the Bank of Canada held its overnight rate at 1.75 per cent this morning!Reason: The Bank noted that there is evidence that the global economy is stabilizing and that US recession concerns are waning, though trade conflicts remain the biggest threat to the Canadian economy. Furthermore, the Bank expects modest growth in 2020 and for inflation to closely track its 2 per cent target.
Click on the image below to view our July 2019 market update video featuring Board President Ashley Smith. You can share this video with your friends and family.
Home buyer demand picked up across Metro Vancouver last month, making July, a traditionally quieter month in real estate, the second highest selling month so far this year.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,557 in July 2019, a 23.5 per cent increase from the 2,070 sales recorded in July 2018, and a 23.1 per cent increase from the 2,077 homes sold in June 2019.
If you are a prospecting to find your next home or are a home buyer and are looking to find your own best deals, you may please go to the link: https://www.teamfazi.com/recip.html#!/wps/-/noframe~true/recip/48183/idx.search?idx_v2_map_pos=49.24880910000002|-122.98051040000001&idx_v2_map_zoom=14&idx_v2_map_radius=1.9
for a professional like MLS search engine.
We listed a beautiful home at #67 55 Hawthorne Dr. in the prestigious Heritage Woods Area, right at the border of Coquitlam and Port Moody.
We had somewhat of a great reaction but market was slightly colder compare to this month's. Throughout our strong marketing efforts along with our hard work ethics, we got an offer that SOLD the home for 98% of listed price. (keep in mind; this transaction took place in soely buyer's market)
Here is a short video and overview of the home. we SOLD and listed it!
Vancouver, BC – June 14, 2019. The British Columbia Real Estate Association (BCREA) has reported that total residential active listings were up 23.2% compared to the same month last year.
However, total active listings were down 2 per cent from April. This is the first monthly decline since the B20 Stress test was introduced in January 2018.
In BC, total residential unit sales as is recorded by MLS® in May, a decline of 7% from in May 2018 and the average MLS® residential price showed a decline of 4.3% from May 2018. Total sales dollar volume was 11% lower compare to the same month last year.
In this year, BC home sales increased 9% in May compared to April, however, consumers continued to struggle with the negative shock to affordability as a result of current stringent mortgage lending policies.
Year-to-date, BC total residential sales dollar volume was down 25.1% compared with the same period in 2018 and total residential unit sales decreased 20.2%, while the average residential price was down 6.2%.
The British Columbia Real Estate Association (BCREA) has recently stated that it is pleased with the measures announced in Budget 2019 that will help address housing affordability in British Columbia. REALTORS® in BC recognize that home ownership is a difficult goal to achieve for many British Columbians, and the policies announced in this budget provide meaningful assistance with this complex challenge.
BCREA supports the newly announced First-Time Home Buyer Incentive program, which introduces shared equity mortgages that will help to directly foster affordability. The budget also proposes increasing the Home Buyers’ Plan (HBP) withdrawal limit from $25,000 to $35,000, further supporting first-time buyers.
While the incentives for first-time home buyers is generally welcomed, the announced measures fail to address the damage done by the mortgage stress test. BCREA is particularly encouraged that the federal government is carefully monitoring the effects of the B-20 mortgage regulations, as was recently voiced concern regarding the overreaching impact this policy is having in the Lower Mainland. The federal government needs to review the policy against interest rate changes since its introduction and re-institute 30-year mortgages to further help Canadians achieve their goals of homeownership.
Remember the times back where coquitlam looked like a village and, homes and lands were cheap and inexpensive? That was the time that you should have invested in coquitlam real estate! Look at coquitlam now, a popular urban city, important enough so, Sktytrain has come to it.
If you now miss that opportunity, we are here to give you a good news:
Abbotsford is a developing city with cheap land and real estate. If you missed the opportunity to invest into coquitlam, now you have a chance to invest into a city that will become very developed in the following decade or two.
1) Canada's economy will continue to under perform the U.S. as growth slows to 1-3/4% in 2019 compared to just over 2% in 2018. For the U.S., this year’s growth will hit about 2.4%.
2) Canada's population growth will lead the G7 by a wide margin. In 2018, Canada’s population was 1.4%, which doubles the 0.7% rate for the U.S. Despite this, however, spending did not rise Per capita GDP growth in Canada this year will under perform most of the G7. Strong (net) immigration accounted for almost half (45%) of Canada’s population increase last year.
3) Canadian consumers are tapped out as debt levels remain high, interest rates edging upward and credit is less readily available. Foreign buying has slowed owing to foreign purchaser taxes and speculation taxes.
4) Most likely, both the Fed and the Bank of Canada will raise their benchmark overnight rate twice this year. With this increases in 2019, consumers will be impacted significantly because they are so heavily exposed to debt. Economists at the Royal Bank estimate that the average household faces a $1,000 hit from rate hikes.
5) Rising interest rates will squeeze government spending with significant debt loads.
6) In contrast to last year, housing in 2019 will not fuel Canada's national economy.
Bottom Line: Sales to new listings will continue to decline. In consequence, the number of completed and unabsorbed units continues to increase.
According to the February report by Real Estate Board of Greater Vancouver (REBGV), home listings continue to increase in the Metro Vancouver housing market, while home buyer activity remains below historical averages. The total number of homes currently listed for sale on the MLS® system in Metro Vancouver shows about 55% increase compared to January 2018.
Residential home sales in the region totaled in January 2019, decreased by almost 40% compare to the same month in 2018. Last month’s sales were the lowest January-sales total since 2009.
Sales-to-active listings ratio for January 2019 were approximately 7% for detached homes, 12% for townhomes and 14% condominiums. Generally, downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period.
This explains the more pronounced price adjustment that we have been experiencing in the past few months for single detached homes compare to townhomes and apartments.
Today’s market conditions are largely the result of the mortgage stress test that the federal government imposed at the beginning of last year,” Moore said. “This measure, coupled with an increase in mortgage rates, took away as much as 25 per cent of purchasing power from many home buyers trying to enter the market.