A Good Time to Buy
It is difficult to predict where the housing market will go in the Lower Mainland in the short-term, but according to Vancouver Mortgage Specialist, Katherine Martin, in the past week some fixed term interest rates have dropped to an all time low. With decreased interest rates and housing costs this year, this would mean good news for first-time homebuyers and long-term thinkers.
According to Martin, the five-year fixed rate is 2.89 per cent and the ten-year is 3.69 per cent. These interest rates can be held for up to 120 days and applied to purchases, refinances, and renewals. A ten year rate at lower than most 5 year rates are sitting on currently mortgaged homes? You can’t beat that if you want security!
In addition to decreased interest rates, studies are showing a small drop in overall housing costs in the city. In a recent Vancouver Sun article, the Royal LePage Price Survey and Market Survey Forecast found that the average price of a detached bungalow has decreased slightly by 1.6 per cent, while condominiums have dropped by an additional 3.6 per cent. Two-storey homes have also dropped to a little over one per cent. With fewer high-end sales in the city, average prices could decrease by approximately three per cent by the end of 2013.
Buying into the market now is an excellent opportunity for all homebuyers. Not only is Vancouver a beautiful place to live, buying Vancouver real estate is a smart long-term investment. The crazy low rates and buyer favourable market is sending a lot of investors and realtors out to buy….it should be motivating a lot more people who want to upgrade or buy real estate for the first time.
As a third generation Vancouver realtor, I have first hand knowledge of real estate and housing options in the city. I would also be happy to provide any information on the current housing market and mortgage rates.