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1 Nov

Opportunity to Refinance & Opportunity to Purchase in 2025

General

Posted by: Adam Sale

Massive Switching Opportunity & Is 2025 the Right time to Buy?

The bank’s don’t want you to find out about this..

If you purchased a home, or renewed your mortgage, in 2023 and you have a fixed-rate above +5.70% with at least 2-years left on your mortgage term, you are paying to much.

To see if this opportunity applies to your mortgage, send me a message with the details listed below and I’ll send you a Mortgage Health Check-Up clearly outlining your potential savings.

The worst case scenario is we find out there are no savings and you can rest easy knowing you are in the best mortgage at this time!

To discover your savings, please respond to this email with the following information:

  • The date you signed up for your mortgage (Month/Year)

  • Estimated mortgage balance 

  • Interest rate 

  • Mortgage maturity date (Month/Year)

When is the Best Time to Purchase a home?

Slightly biased opinion – but considering my wife & I purchased our first home in September (yay!), I do put my money where my mouth is. 

When is it a good time to purchase an owner-occupied home in Greater Vancouver?

Is it when mortgage rates are high, or when sales activity is low? Or is it when inventory levels are high?

Well, consider these indicators…

  • Interest rates are above the 15-year average, but decreasing

    • Housing is becoming (slightly) more affordable

  • Inventory is 24% above the 10-year seasonal average

    • Downward pressure on housing prices

  • Sales activity is 25% below the 10-year seasonal average

    • Downward pressure on housing prices

  • BC’s unemployment rate is at 6%, the 15-year average is 6.25%

    • BC’s economy is relatively stable unlike Eastern Canada.

  • Government changes to mortgage policy, making it easier to qualify for a mortgage in 2025

    • Desired effect: Stabilize housing prices, protect the banks’ investment

  • Federal Government Reducing Immigration numbers

    • Decrease in the average rent. Less pressure on housing prices to increase 

  • 48% of BC’s Condo’s & Townhomes being built are specifically designed as rental units. You are unable to purchase these units. The 5-yr average is 31%

    • Upward pressure on future housing prices – 2026 and beyond

Is now a good time to buy a home in Greater Vancouver?

Yes, now is a great time to buy.

Interest rates are decreasing, housing inventory is way above the average, and the government is actively releasing new mortgage policies to stimulate the housing market.

Over 2025, it is expected that starter homes (condo’s & townhomes) will continue transitioning from over-leveraged investors to first-time home buyers as rental rates decrease. I anticipate this will keep condo prices flat and sales activity will increase.

At some point, however, once the inventory levels decrease back to the 10-year average, the effects of 48% of new builds being purpose built rentals will put upward pressure on housing prices.

2023 was a good year for the number of new builds registered, but it was one of the lowest production years of homes built for home-ownership. Only 52% of condos & townhomes were built for re-sale, and this trend is accelerating.

Lower supply of condos & townhomes available for first-time home buyers will continue putting upward pressure on housing prices once inventory levels decrease back to 10-year average.