Market Update March 2020
Posted by Capital City Group on
This week the Bank of Canada lowered their overnight rate by .50% to 1.25%. This was, in my opinion, a kneejerk reaction to the potential Covid 19 outbreak that has the potential to super charge our spring real estate market, which has been sitting in a sellers market already for the last 6 months. Coupled with the softening of the stress test effective April 6th we are likely to see prices of entry and mid level housing to rise, perhaps not at the levels seen through the last aggressive market cycle, but stronger growth than I had anticipated before this rate cut.
Several of the big banks have already cut rates in response to the Bank of Canada's rate drop. This makes for a great opportunity to get into the market while rates are low, but before prices rise if I'm correct. Give me a call if you'd like me to get a mortgage broker in touch and find out what your options are.
The sales to active listings ratio jumped to almost 26.5% in February, with 563 sales and 2,127 active listings. For any of you who have been following my newsletter you know this means a sellers market with increase upward pressure of pricing. Listings are moving quickly but obtaining top dollar which requires a different strategy than in a balanced or buyer's market.
Year over year benchmark pricing was up 3.5% and 1.1% over January 2020. The upward trend is continuing into the busy spring market. Whether you're buying or selling I can help. Give me a call and lets grab a coffee.