Net Unconditional Sales APR 2018: 775
Net Unconditional Sales APR 2017: 885
Active Listings End of APR 2018: 2.002
Active Listings End of APR 2017: 1,690
In most price ranges throughout the greater Victoria Real Estate Board it continues to be a ‘sellers market’. Inventory continues to build slightly. The new NDP government punitive real estate related taxes combined with the national mortgage stress-test changes has made it more difficult to buy in theory but what we are seeing is the continuation of multiple-offer situations and aggressive low or no condition offers from buyers. If family or income properties are priced correctly they sell almost immediately. With almost zero vacancy rate and residential rental rates ranging from steady to higher investors continue to see value and purchase residential properties for income generation.
While the Bank of Canada overnight rate remains steady at 1.25%, mortgage rates are rising slowly and steadily into the hot spring market. And now the Bank of Canada has increased its minimum stress-test rate from 5.14% to 5.34% further reducing the buying power for borrowers. 5 Year Fixed PURCHASE rates and RENEWAL rates range from 3.14% to 3.69%.
5 Year Variable Rate Mortgage options continue to see good discounts of around 1% to the current Benchmark Rate of 3.45% making the effective current rate of less that 2.5% an attractive choice for many borrowers. While you still must qualify at an inflated stress-test rate your payments are lower, and with majority of Variable Rate mortgage products your pre-payment options are significantly lower than pre-payment penalties on fixed rate mortgages. And keep in mind, most of our lenders will allow you to lock-in at any time at great fixed rates for the balance of your term, with no administration cost.
Many people are now using our new 2018 online calculator to check maximum mortgage affordability. You can see the new Affordability Calculator HERE. Of course, we always have access to unadvertised special rates, so please call or email if you have questions.