Mortgage Rates On The Rise
Now that NAFTA negotiations are somewhat behind us, we can get back to focusing on the fun stuff, and we have some good news and some not as good news.
Mortgage rates started going up again in early October and we will likely see the Bank of Canada bump the rates up another 1/4 point at their next meeting on October 24th. This is definitely supporting the trend towards higher rates that many are forecasting, now that our trade issues with the US are a little less volatile?
Since June of 2017, the 5 year fixed rate has jumped up 1.20%. Even with increased rates and the dreaded STRESS TEST, as of the end of September, residential home sale prices were up in the Okanagan 6.08%, condos were up 4.94%, and townhouses were up 8.60% over 2017. These are good numbers and our inventory of homes listed for sale is up, but still below historical averages.
Migration to the sunny Okanagan is remaining strong in keeping the demand for housing balanced. That being said, things have been a little quieter around the office recently and the stats support this, as the number of sales is down 21.21% this year over 2017. There are fewer sales but at marginally higher prices this year, which is great for those in the market, but not so great for those waiting on the sideline.