Dear Clients, Friends and Neighbours …
As promised, we are touching base mid April with the latest in Real Estate.
We were very happy to hear BC has avoided the worst case scenarios and all our community sacrifices to date have been effective. See Bonnie Henrys modeling information – released today – here:
Although new listings and sales have been recorded over the last month its likely this activity has come from those who simply could not hold off, for whatever reason.
At this time even our most motivated sellers are expressing the same concerns around supply. Ie: if you were to sell in today’s climate, your purchase or rental options would be severely limited. Similarly, even with record low interest rates our buyers are preferring to wait for an uptick in new listings to ensure they have more options to choose from.
Based on today’s press release we have now set our sights on mid May as the earliest we may see an uptick in sales activity and any real bump in new listings. That being said, there is a chance sellers who have been holding off may take todays modelling announcement as their cue to get their home on the market before their neighbours list.
We will know more once April sales statistics are released.
Also important to note …
The Bank of Canada maintained its overnight policy rate at 0.25 per cent this morning, a level it considers to be its effective lower bound. The Bank also announced additional new measures to support the Canadian financial system. In its statement, the bank noted that efforts necessary to contain the spread of COVID-19 have caused a sudden and deep contraction in economic activity and employment worldwide. The bank judges the current outlook to be too uncertain to provide a complete forecast, though it expects real GDP growth to decline 1-3 per cent in the first quarter of 2020 and a further 15-30 per cent (annualized) drop in the second quarter.
To offset any potential dysfunction in financial markets and to keep credit channels operating smoothly, the Bank will continue its purchase of Government of Canada as well as provincial government, and even investment grade corporate bonds in the secondary market. These measures, along with those implemented by the Federal Government, will help to ease pressure on Canadian borrowers at all levels, from large corporations, to small businesses to households.
And for a detailed look at BC housing markets. See the British Columbia Real Estate Associations latest press release here …
We hope you find our COVID-19 updates valuable. We will continue with our updates as we have new information to report. In the meantime, please don’t hesitate to reach out with any questions that arise or to chat about a strategy that would best suit your real estate goals.
Jenn and Colin