Vancouver’s red-hot real estate market has become something of a cliché, but it shows no signs of slowing down. 2015 started out with a bang for Metro Vancouver, showing a big jump in the price of detached homes. With limited supply and low interest rates, buyers are eager, making it an ideal time to list and sell.
New figures released by The Real Estate Board of Greater Vancouver on Tuesday showed that the typical price of a detached home increased 8.4 percent from January 2014. Additionally, the number of home sales in Greater Vancouver was higher last month than the average from over the past decade.
“While demand remains steady, we’re seeing fewer homes for sale at the moment,” said Real Estate Board president Ray Harris in a release. “This is creating greater competition amongst buyers, particularly in the detached home market. The number of detached homes listed for sale today is the second lowest we’ve seen in four years.”
Demand for homes in Vancouver
The demand for homes, coupled with limited supply and low interest rates, is good news for sellers. Additionally, the low Canadian dollar is likely to stimulate foreign interests as prices are now 20 percent lower for overseas shoppers.
The Bank of Canada cut the benchmark interest rate from 1 percent to 0.75 percent on Jan. 21 to lessen the blow of dropping oil prices. This means lower interest rates for variable rate mortgages, lines of credit, and other loans based on the prime rate.
“A reduced rate could allow you to pay down your mortgage a little faster, save some money on your monthly payments, or change the amount you qualify for,” Harris said. “It’s important that you do your homework and understand how these announcements impact your situation.”
To learn more about your options when buying or selling property in Vancouver, contact an agent at Vancouvertownhouse.ca.