In recent days I have been fielding a lot of calls and emails from clients about the sudden increase in fixed mortgage rates by some lenders. You can see the article here: (already posted to Haus FB page)

 

TD Bank increases fixed mortgage rates, follows RBC hike.

 

Before the panic sets in here are some facts I wanted to share with you.


  • Interest rates are still at historical lows.  A client renewing or applying for a new mortgage today is still likely going to get a lower rate than the mortgage they currently have
  • If rates rise by .25% that equates to an increase of $13/month in a payment for every $100,000 mortgage.  E.g. so if your client has a $400,000 mortgage that is $52/month
  • 75% of Canadians are in fixed mortgage rates and 60% of them are in 5 year fixed terms so their rates remain the same until maturity
  • Of the 70% of Canadian households who own their homes, 40% are mortgage free
  • Only 13% of Canadians are carrying debt over $200,000 and 33% are debt free
  • Mortgage delinquency rate in Canada is .027%, the lowest in the world.
 
The mortgage rate hikes come amid a sell-off in the bond market and recent federal mortgage rule changes that have made it more expensive for banks to get access to cash.

If you have any questions or want to disciuss this in more detail, feel free to give me a call.
 
I am here to help.
 
AA



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Growing sales in Fraser Valley met with bump in new inventory

SURREY, BC – The Fraser Valley saw a much-needed increase to new housing inventory entering the market in May, supporting growing demand for residential properties in the region. Last month marked the highest level of sales for the Fraser Valley since June of last year, and the second-highest level for a May historically.

 

The Fraser Valley Real Estate Board processed 2,707 sales of all property types on its Multiple Listing Service® (MLS®) in May, a decrease of 7 per cent compared to the 2,911 sales in May of last year, and a 21.4 per cent increase compared to the 2,230 sales in April 2017.

 

Of the 2,707 sales processed last month, 620 were townhouses and 609 were apartments. Attached home sales combined continued the 10-month trend of surpassing detached sales in the region.

 

“The further we get into this year’s market, the less 2016 looks like an anomaly in terms of demand and sales activity. If it wasn’t clear before, the Fraser Valley is now a prime, highly sought-after destination for home owners of all types," said Gopal Sahota, Board President.”

 

In May the total active inventory for the Fraser Valley was 5,203 listings, a decrease of 9.5 per cent year-over-year, and an increase of 5.9 per cent compared to the available inventory in April 2017.

 

The Board received 3,712 new listings in May; a 1 per cent increase from last year’s 3,674 new listing for the month, and a 25.8 per cent increase compared to April 2017’s incoming listings.

 

"We’re very happy to see the bump inventory we were looking for in April. I think sellers will certainly be glad that demand hasn’t let-up since the start of the spring market and more options for potential buyers is always a good thing.”

For the Fraser Valley region, the average number of days to sell a single family detached home in May 2017 was 23 days, compared to 16 days in May 2016.

 

HPI® Benchmark Price Activity 


• Single Family Detached: At $915,800, the Benchmark price for a single family detached home in the Valley increased 3 per cent compared to April 2017, and increased 9.8 per cent compared to May 2016.

• Townhomes: At $458,900 the Benchmark price for a townhome in the Fraser Valley increased 2.9 per cent compared to April 2017, and increased 25.7 per cent compared to May 2016.

• Apartments: At $295,000, the Benchmark price for apartments/condos in the Fraser Valley increased 3.4 per cent compared to April 2017, and increased 31 per cent compared to May 2016.

 

Full package:
http://www.fvreb.bc.ca/statistics/Package201705.pdf

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