This summer was a very active in our local real estate market. The sunny weather and abundance of tourism helped put people in the home buying mood with many people purchasing to move and others as a strict investment. The Vancouver Real Estate Board reported that for the 16th consecutive month, sales on MLS increased year over year.
INTEREST RATES REMAIN LOW
We’ve continued to enjoy a long period of historically low interest rates that have created tremendous homebuying opportunities. As economies around the world begin to show signs of improvement, it won’t be long before there is upward pressure on interest rates so it is important to take advantage of today’s low rates while you can.
When rates do eventually increase, it will affect people’s buying power. For example, on a $350,000 mortgage with a 10% down payment and a five-year mortgage at 2.99%, today’s monthly payments are $1,654. If rates go up by just half a point, those payments will increase by almost $100 a month! Buying a new home today will save you money in the long run.
PARENTS HELPING THEIR CHILDREN
Because of the low interest rates we are seeing a lot of first time buyers getting into the market. Personally l love guiding first time buyers into their first home. Not only is it a very exciting time for them but also for me as I can be a part of helping them with their biggest investment. BUYING A HOME.
I’m also noticing that many parents are helping their kids with their initial downpayment, helping to clear debts or adding themselves to the title. Our parents generation generally made a significant amount of money on their real estate investments so it is great that they are able to help out their children. I am here to help first time buyers and their parents with this process and know some great areas and buildings to target.
INVEST IN THE BEST
Vancouver was once again voted by The Economist as the world’s third most liveable city and is the top Canadian city on the list. People from all over the world want to live here and British Columbia is expected to receive upwards of 40,000 new immigrants annually.
With both interest rates and vacancy rates remaining low in Metro Vancouver, many wise investors are diversifying their portfolios to include real estate. Over the last five years, the average house price in Vancouver has increased by 32% and over 10 years, the increase has been an astounding 109%!
These figures highlight how strong demand for housing in the lower mainlad remains and reinforces the benefits of investing in real estate.
Give me a call if you would like to discuss your next step. I am here as a resource for you! 604-363-7858