The other day, I heard a report on CBC that housing sales are down an overall 3%, primarily due to the B.C. housing market. Although this is a very busy time for real estate deals, the number of deals our office is handling is leveling off compared to same time last year.
In my unqualified opinion, housing prices are not declining. Instead, they are stabilizing which means that the gross competition and bidding wars experienced in recent past is now tailing off. As an aside, two months ago, I was successful in having CMHC reverse a refusal to extend coverage by presenting them with a 3rd party valuation substantiating the fair market value at $80,000 over list. This saved the deal and ensured that the client did not lose their $10,000 deposit.
The new reality is that the recent boom and fierce competition has helped many, who held onto their home, to increase their equity intended for retirement. Good for you and good for the many that got into the housing market before the boom.
Interest rates? Again, in my unqualified opinion, I don’t see a large shift over the next 24 months. Interest rates are tied to multiple economic factors but the simplest I see is that our economy is still transitioning to the new reality of high tech – we are not entirely there yet. In fact, I have a lot to say about this growth area but that is for politicians and economists to solve. I enjoy leaving this for “nice” dinner conversation.