The Bank of Canada has just announced a 50-basis point rate cut, bringing the overnight lending rate down to 3.75%. This marks the fourth rate cut of 2024, following a sharp drop in inflation to 1.6%, the lowest in over three years.
What Does This Mean for Buyers and Sellers in Greater Vancouver?
For those who've been waiting on the sidelines, now is a great time to consider buying. Lower borrowing costs, combined with an improved housing supply, mean better opportunities to find the perfect home in the Lower Mainland. With interest rates at their lowest this year, market conditions are more favorable than they've been in a while.
The Market Is Showing Signs of a Comeback
After last year’s uncertainty, when rates remained steady at 5%, we’re seeing increased activity across Greater Vancouver. Home sales are up year-over-year, with the average mortgage payment in the region dropping by over 13% compared to 2023. Buyers are gradually returning to the market, particularly in detached homes and townhouses, making it a promising time for sellers as well.
Should You Lock In a Mortgage Now?
With mortgage rates trending lower, it might be time to explore your options, whether you're purchasing a new home or considering refinancing. Variable rates are becoming more appealing as interest rates continue to decline, but it’s crucial to weigh the risks and find a strategy that fits your financial goals.
Why Now Might Be the Best Time to Buy or Sell in Greater Vancouver
Lower rates are making it more affordable to buy, while increased market activity suggests that demand is picking up. Whether you’re looking to buy your first home, upgrade, or sell, now is an ideal time to leverage the current market conditions.
Have Questions About the Recent Rate Cut or Local Market Trends?
We are here to help. If you want to know what this rate cut means for your buying or selling plans, or if you’d like insights on the Greater Vancouver market, we’re just a call away.
