BCREA has issued their latest mortgage rate forecast, the crux of which is "We anticipate that current low mortgage rates will be around for most of the summer before rising modestly into next year." Low prices, low rates -- a great time to buy a house!
Read the full report here: http://www.bcrea.bc.ca/…/economics…/mortgagerateforecast.pdf
The Sunshine Coast is a market unto itself but we are not disconnected from the greater Lower Mainland market. Generally I like to concentrate on the Sunshine Coast statistics but sometimes it is beneficial to look at the bigger picture. To that end I am providing a link to the Real Estate Board of Greater Vancouver's stats package for May in its entirety, so you can see how we stack up against the rest of the Lower Mainland. Here it is: file:///C:/Users/Lori/Documents/SunshineCoastLand.com/Stats/0REBGV-Stats-Pkg-May-2019.pdf
As for us on the Sunshine Coast in May 2019 we saw the benchmark price of single detached homes go down slightly (1.8% from the month before and 4.9% since May of 2018) to $600,300. Keep in mind, though, that number is still up 34.8% over what it was only 3 years ago. We had 47 sales in May (compared to 68 in May 2018), and 145 listings (126 in May 2018).
These numbers represent a slowdown in the market spurred by government intervention, not a bursting bubble.
MAY 29, 2019 BANK OF CANADA PRESS RELEASE:
The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent.
Recent Canadian economic data are in line with the projections in the Bank’s April Monetary Policy Report (MPR), with accumulating evidence that the slowdown in late 2018 and early 2019 is being followed by a pickup starting in the second quarter. The oil sector is beginning to recover as production increases and prices remain above recent lows. Meanwhile, housing market indicators point to a more stable national market, albeit with continued weakness in some regions.
Continued strong job growth suggests that businesses see the weakness in the past two quarters as temporary. Recent data support a pickup in both consumer spending and exports in the second quarter, and it appears that overall growth in business investment has firmed. That said, inventories rose sharply in the first quarter, which may dampen production growth in coming months.
The global economy is also evolving largely as expected since April, although the recent escalation of trade conflicts is heightening uncertainty about economic prospects. In addition, trade restrictions introduced by China are having direct effects on Canadian exports. In contrast, the removal of steel and aluminum tariffs and increasing prospects for the ratification of CUSMA will have positive implications for Canadian exports and investment.
Inflation has evolved in line with the Bank’s April projection. The Bank expects CPI inflation to remain around the 2 per cent target in the coming months. Core inflation measures all remain close to 2 per cent.
Overall, recent data have reinforced Governing Council’s view that the slowdown in late 2018 and early 2019 was temporary, although global trade risks have increased. In this context, the degree of accommodation being provided by the current policy interest rate remains appropriate. In taking future policy decisions, Governing Council will remain data dependent and especially attentive to developments in household spending, oil markets and the global trade environment.