Tag Archives: Pospischil Realty

Market Update – May 2019

The real estate market in Vancouver continues to chug along at a consistent moderate pace with the odd spits and spats of activity.

Through our 38+ Point Marketing Plan, we have been successful in generating a high turnout and multiple offers on most of our listings resulting in well above market sales. The attached product is very active now with 1, 2, and 3 bedroom condos, townhomes, and half duplexes making up the vast majority of sales in our current market.

Our upgrade buyers are sitting pretty as they are in a super strong position selling their hotter entry to mid-level product and upgrading into the higher end detached product (houses) which is relatively quiet. Listing agents are rolling out the red carpet and making us lattes when we show their listings. It’s easy to setup tours, they are friendly, and accommodating and are hoping we choose their home to offer on. What a great market to buy a house in (see recent House article).

Our biggest challenge today is not necessarily the low activity stats, the numerous government tax programs, or the difficult loan qualification process (although these are not helping) but rather that the consumer confidence is down. Most buyers are playing the waiting game. If everyone waits, nothing happens. The market stays soft and prices flatline. . . . . It’s the perfect time to buy!

Once that big announcement in the media comes through that our market is recovering, prices are already well on their way up and those waiting buyers have missed the bottom end of the market cycle. At that point buyers begin climbing over each other to buy and prices climb faster than anyone anticipates.

So, if you are planning to make an upgrade, there is no better time than right now. Don’t miss this window as it will not last.

Best Options:
1. Do an equity take out on your current home and invest in an entry level detached house in East Vancouver.
2. Sell your condo/townhouse/duplex and buy your first house in the smallest marginal upgrade market cost we have seen in years.
3. Purchase with a friend or family member with a 3-5 year plan to cash out when the market decompresses and potentially earn 50 times more than what you are earning now in your investments.
4. Etc. etc.

Mortgage Update

by Paula Siemens | INVIS The Siemens Group

The Bank of Canada announced that they will be holding the overnight rate as is, citing a slower than expected 2019 economic outlook; which will keep the prime rate as is. Posted fixed rates should also remain stable. However, lenders’ cost to underwrite a mortgage have increased substantially over the past few years due to legislative changes. It now costs on average $1500-2000 to underwrite a mortgage application due to increased scrutiny and reporting required. The lenders feel that the current climate is a race to the bottom, leaving very little profit margin for your average mortgage. At some point lenders will feel that they can no longer offer the same rate sales, meaning we could see some effective mortgage rates rise slightly while the Bank of Canada Rate and Bank Posted rates remains unchanged.

The Bank of Canada will likely try to increase the overnight rate in 2020.

The 2019 Ride To Conquer Cancer

Every year Adam and I and Team Pospischil Realty join the Ride To Conquer Cancer to raise funds in our community for the BC Cancer Foundation. The funds raised annually go directly into cancer research and treatment options right here in BC. Thanks to your continued support over the past 10 years Team Pospischil Realty has raised over $325,000 in this fight against cancer.

This year’s route of 200+ km will run from Vancouver To Hope (100% Canadian!) and will take place over the August 24th/25th weekend.

This year for the 2019 Ride, we are pleased to announce that in partnership with our friends at West Point Cycle, we promise to have our most supported and successful ride ever!

As a cancer survivor myself I know the challenges cancer patients and their families face in their journey through diagnoses, treatments, and the roller coaster of emotions towards the finish line. I have travelled the cancer road 3 times in my lifetime, my brother Rudy has had cancer twice, and both my parents have battled cancer. My quest is personal and so may be yours as everyone is touched by this disease.

Our annual ride reminds me personally of my past challenges and enables me, and those that joined us through their support, to help push the boundaries of research and treatments to help those on the journey today, and in the future. And perhaps one day we can celebrate a victory in a cure to cancer.

We thank you for your continued support in our campaign. With your help cancer can be beaten within our lifetime. Join us in our fight against cancer and support our ride by simply clicking the link below: