January 11, 2014
A look back at 2013
After a sluggish start to the year, Vancouver enjoyed a very strong second half of 2013 as the housing market rebounded in both the number of homes sold and price gains. In fact, the second half of the year was the best since 2009 with Vancouver seeing a 48% annual increase in the number of homes sold and year over year price gains of 14% in sales reported on Vancouver’s Multiple Listing Service.
The Polygon family of companies welcomed 1,153 new homeowners this past year and we are grateful for the confidence they have shown in purchasing a new Polygon home.
Interest rates remain low…but for how long?
One of the key drivers of home sales in 2013 was the continuation of a low mortgage rate environment. However, we may have seen the last of extraordinary low rates last spring when mortgage rates bottomed out. Since then, we have witnessed a slight increase with five year mortgage rates today in the 3.50% range.
As economies around the world begin to show signs of improvement, it won’t be long before there is further upward pressure on interest rates. The US economy is strengthening and as it does, Canada’s economy will no doubt kick into a higher gear meaning this prolonged period of low interest rates may soon come to a close.
With a strengthening economy around the corner, there has never been a better time to buy a new home and secure a long term mortgage at today’s low rates.
BC’s economy positioned for growth
With the election of Premier Christy Clark and the Liberals last May, we now have a stable provincial government intent on growing the economy and creating thousands of new jobs. The forestry sector continues to gain strength on the back of the recovering US housing market. Exports and tourism should increase in 2014 with a lower valued Canadian dollar. Of course, there are many large economic proposals in the resource and energy sectors working their way through the system that will provide significant long term benefits for the Province.
We love Vancouver, and so does the world.
Vancouver remains one of the most desirable places to live, work, study and play. Over the next decade, British Columbia is expected to receive upwards of 40,000 new international arrivals annually, most of whom will locate in and around Metro Vancouver. This increase in population will ensure that demand for new housing remains strong in the years ahead.
Our plans for 2014
Today, more than 22,000 families across the Lower Mainland live in a Polygon home. We are excited about the future and confident that the housing market will continue to show signs of improvement with plans to open ten new communities in 2014.
Owning Vancouver real estate has proven to be a great investment over the years and we see no reason for that to change in 2014. If you are considering the purchase of a new home this year, start your search with Polygon. I’m confident you’ll find something to fit your lifestyle.