October’s half-percentage point interest rate cut by the Bank of Canada (BoC) was not unexpected. Buyers are starting to move cautiously as they anticipate further rate cuts on December 11th and into the new year. The central bank’s policy interest rate is now down to 3.75% but pundits are calling for it to be as low as 2% - 2.5% by the end of 2025.
While October 2024 saw a substantial increase in sales compared to October 2023, statistically these numbers reflect the ten-year average for this month. In other words, October 2023 saw sales equal those of October 2008 when the stock markets experienced the worst weekly decline ever.
According to Sotheby’s International Realty Canada’s “Top Tier” Report, homebuyers and investors are set to encounter some of the most favourable conditions in years for purchasing or upgrading their homes as top-tier property listing supply increases, interest rates decline, and housing prices stabilize or even decrease in certain communities. “This trend is especially evident in the once fiercely competitive markets of Vancouver and Toronto, as well as across the luxury condominium sector,” says Don Kottick, President and CEO of Sotheby’s International Realty Canada. “Although we expect the luxury market to remain largely stable in the coming months, over the longer term, there is no doubt that population growth will intensify competition for housing. Further, rising building costs and ongoing bureaucratic and policy barriers will only discourage construction. This means that there is an opportunity to take advantage of the favourable home-buying conditions we are seeing today.” Read the full report here.
November also brings some relief for those home owners renewing mortgages or changing lenders; the Office of the Superintendent of Financial Institution’s (OSFI) announced that starting November 21st it would no longer require a stress test for uninsured mortgages when borrowers are making a straight switch between lenders, meaning they are not changing things like their amortization or borrowing amount.
Following substantial investments by the respective owners of Rosemead House in Esquimalt and Sooke Harbour House in Sooke, both these iconic establishments recently reopened offering unique boutique hotel rooms and destination restaurants. We wish them much success.
Meanwhile, Victoria continues to achieve recognition; this time Victoria was ranked as the most sustainable destination in North America in the 2024 annual Global Destination Sustainability Index, an initiative of Earth.org, an environmental news website. The index measures the environmental and social sustainability performance and strategies of a city, its tourism supply chain and the destination management organization. With catastrophic climate change events occurring more frequently, we can be proud of this recognition.
As always, we are here to answer your questions and look forward to hearing from you.
Glynis' Market Snippets | October 2024