Market activity
Real estate is consistently one of the biggest topics of conversation in Canada. Our real estate market has been through significant changes over the years, so it’s important for buyers and sellers to be well prepared. Read on to learn how housing supply and interest rates impact your opportunity to buy a house, and how our credit union can help.
How market activity affects buyers
When the housing market is active with people buying and selling you can expect to face more competition to get the house you want, so we recommend you have a mortgage pre-approval in place. Whether you’re a first time buyer, moving, or refinancing, your first step is to talk to one of our mortgage specialists.
How market activity affects sellers
When there are low interest rates and more movement in the real estate market, there can be an opportunity for sellers to get a higher price for their home.
Housing supply
With interest rates being one key piece of the puzzle, supply and demand play an important role as well. In April 2024, housing starts (a measure of residential housing projects that have been started over a specific period) were down 55% from the previous year in Vancouver. Housing supply remained low in many areas of BC, making the market harder to predict.
How housing supply affects buyers
Less supply in the market, either due to high demand or lack of new inventory, will make it harder to find what you’re looking for as a buyer. You may need to be more flexible to ensure you get into the market, especially as a first-time buyer.
How housing supply affects sellers
If you’re looking to sell, you may want to consider your next move before putting your house on the market. Click here for some guidance around whether to sell or buy first.
Interest rates
Interest rates can have a huge impact on prices and market activity, as we saw in 2020-2024 with extremely low rates followed by a sharp increase. Analysts closely monitor interest rate changes to track the impact on housing market activity in BC and across Canada. As rates come down, we often see a flurry of eager buyers.
We’re living in a complex and evolving real estate landscape. We’ve seen big shifts in buying behaviour and property values, which have been fluctuating even more dramatically in Northern BC communities.
How interest rates affect buyers
Prospective buyers watch interest rates closely, as small changes can make a big difference in the total amount you spend on your home in the long run. We always recommend getting pre-approved for a mortgage, which gives you some insulation in case rates go back up.
How interest rates affect sellers
Higher interest rates can sometimes reduce demand or reduce the selling price for your home because buyers are getting approved for smaller mortgage loans.
Tips for buyers and sellers
Financial planning: Consistent financial planning will ensure that you’re ready to take advantage of potential opportunities when they come up.
Follow market conditions: A chore for some and a passion for others, following the market is always a good idea, and extra important if you’re looking to buy or sell.
Set realistic expectations: Regardless of whether you’re buying or selling, staying informed of the landscape will help you keep expectations in check and make the best decision for you and your family.
Whether you’re buying or selling, check out our current rates and stay informed by reading home ownership articles in our Learning Centre.
The credit union advantage
There are many reasons to be proud of banking with a credit union, but here are some of our favourite benefits of getting your mortgage with us.
- Flexibility: Canadian credit unions can typically offer better flexibility when it comes to mortgage structure and payment than big banks because of their not-for-profit structure and focus on member service. Because we don’t have public shareholders, our profits go towards the community and improving products.
- More personalized service: We can quickly adapt to market conditions, offer more flexibility, and build stronger relationships with our borrowers.
- In-house servicing: This means your loan is serviced internally with Coastal Community rather than a third-party servicer.
The Canadian real estate market continues to go through changes impacted by factors like interest rates, market activity, and housing supply. Buyers and sellers alike are urged to stay informed and prepared to navigate the evolving landscape, with support from your friends at Coastal Community, of course.
We’re here to answer your mortgage questions and to support you wherever you are in your financial journey.