Vancouver real estate market slowing down as BOC raises key lending rate
On Tuesday the Bank of Canada (BOC) raised their key interest rate by 25 basis points to 0.50 percent. Following the announcement most major banks immediately followed suit and increased their cost of lending by raising variable rate mortgages.
The rate increase was expected as the Bank of Canada made it clear they were under pressure months ago to do so due to a strengthening economy and subsequent rising inflation. When the federal governments announced its new mortgage regulations in February many anticipated a slowdown in Vancouver's real estate market in later part of 2010 and prices to flatten after an active spring. This seems to have happened earlier than anticipated.
Recent Real Estate Board of Greater Vancouver (REBGV) statistics show that the federal government‘s announcement may have triggered Vancouver home buyers to push their buying time table forward to avoid these new regulations and expected rate increases.
A slowing real estate market will improve opportunites for home buyer's by creating more inventory and allow more room for negotiation.
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