I believe we are on the cusp of a tipping point in the Vancouver Real Estate Market.
We have people stacking up high on the sidelines of the market; Some of them for good reason and others under false assumptions or bad advice.
Buyers who couldn’t qualify for the last two years
Buyers who don’t want a mortgage payment of $4500/month for a 2 bedroom apartment
Down-sizers who don’t want to sell in a down market
Sellers that don’t want to break their fixed rates below 2%
Investors/potential landlords that wouldn’t come close to covering their costs by renting
They all have their reason and their personal rate thresholds that should move them but thanks to herd mentality, the tipping point will not just be a mortgage calculator. Instead, it will be a combination of personal budget, professional advice AND consumer optimism in the market. Including whether their neighbour, uncle, news anchor, tik Tok realtor (hiiii) is telling them DON’T MISS OUT, THIS IS THE TIME (see FOMO SPRING March 2022).
I don’t know when we’ll hit our tipping point in Vancouver but it could be as soon as tomorrow ( Oct 23rd )when many, including myself, believe the Bank of Canada will cut the overnight rate by 0.50%
Although it’s called a super-sized cut, 50 basis points does not make a significant difference for the average buyer;
it’s about $160/month less on a $500,000 mortgage for the monthly budget aware
OR about 5% increase in buying power for those hindered by the stress test.
BUT as I’ve mentioned in other videos, cuts and increases by the Bank of Canada are about more than 1s and 0s, they are signals to the market and a larger cut of .50% is a signal to the market that the Bank of Canada is serious about getting back to neutral, are not afraid to do that aggressively rather than .25% at a time. That’s why many are calling it an ‘emergency cut’ or a ‘super size cut’.
So, you ask: How do I capitalize on this moment in the market? With the markets pricing in 0.75% in total cuts before the end of 2024, buyers that get active and buy now will have the advantage of high inventory, less competition and motivated sellers PLUS lower rates by the time they close.
So if you are still on the sideline, my question to you is;
What is your tipping point and are you sure it’s well informed?
If making a move is in your future, let’s sit down now and create a strategy.
Click here and book with me directly
Email: kadelacasse@gmail.com
Call/text: 604-401-9199
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