A Shift in the Canadian Housing Market.
The Canadian housing market is showing signs of shifting back towards buyers, thanks to an influx of new listings. As the market begins to stabilize, now might be the ideal time for prospective homebuyers to explore their options. At Client First Mortgage Solutions in Maple Ridge, Steve and Nathan are ready to assist you in navigating these changes and tailoring a mortgage solution to your needs. 
New Listings Bring More Choices
July 2024 saw a surge in new listings, with 83,607 homes entering the market, marking a 12.7% increase from last year. This influx is helping to ease the seller-dominated market that has characterized the post-pandemic housing boom. The sales-to-new-listing ratio dropped to 52.7% in July, significantly lower than the peak of 89.4% in February 2022.
Toronto and Vancouver, Canada’s largest markets, contributed a quarter of these new listings, with Toronto seeing an 18.8% increase, and Vancouver a 16.7% rise from the previous year. This increased inventory is giving buyers more options and reducing the intense competition that has driven prices up in recent years.
Lower Rates Offer New Opportunities
Declining 5-year Government of Canada bond yields, which strongly influences fixed mortgage rates, have contributed to a drop in fixed rates, while two interest rate cuts by the Bank of Canada (BoC) – one in June, another in July – have seen variable rates fall.
Lower rates may have helped convince more Canadians to list their homes, but there still hasn’t been a sizeable shift in the mortgage landscape. The rate outlook also hasn’t improved enough to cause a big change in how borrowers are approaching the fixed-vs-variable question. Clients are still showing a preference for fixed-rate mortgage options, especially since prime lending rates are still high.
Mortgage Tips for Buyers
- Explore New Listings: With more homes on the market, take advantage of the increased selection to find a property that fits your budget and needs.
- Consider Fixed-Rate Mortgages: Despite the drop in rates, many clients still prefer fixed-rate mortgages for stability, especially with high prime lending rates
- Work with Experts: Steve and Nathan at Client First Mortgage Solutions are here to help you make informed decisions in this evolving market.
Original articles: www.mpamag.com
