Vancouver Real Estate News from Andrea Rozenberg
Purchasing a home is an emotionally charged experience that can cloud the judgment of even the savviest of buyers so this month, there are some tips on how to avoid buyer's remorse.
Finally, with interest rates much higher than we’ve been used to, there are a few debt management strategies to help you and your loved ones shake off the shackles of debt.
Thanks for checking out this month's newsletter. Please reach out if you ever have any questions about real estate, even if it’s just to find out what the house down the street sold for – it’d be great to hear from you!
VANCOUVER REAL ESTATE UPDATE
THE VANCOUVER WINTER ARTS FESTIVAL
The annual Vancouver Winter Arts Festival is a vibrant celebration of creativity that allows you to dive into the local arts scene amidst the crisp winter air.
This year, the Vancouver Winter Arts Festival includes new public art and light installations, guided tours, pop-up parties and an all-ages Hub featuring a licensed bar and free daily live entertainment.
Beyond its entertainment value, the festival also serves as a platform for dialogue and reflection, with discussions, workshops, and forums exploring the intersection of art, culture and society.
This free, family-friendly outdoor event takes place between Thursday, February 22nd and Thursday, February 29th. Hope to see you there!
BANK OF CANADA RATE UPDATE
In a scheduled announcement on January 24, 2024, the Bank of Canada decided to maintain its target for the overnight lending rate at 5%. This was its fourth consecutive hold after two interest rate hikes last summer.
The Bank noted that Canada’s economy had performed sluggishly over the second half of 2023 and anticipated no growth over the first quarter of 2024 before picking up in the second half of this year.
The Bank also stated that “spending by governments contributes materially to growth through the year,” suggesting they will be waiting until the federal government tables the next budget before revising their projections.
The Bank once again cited shelter costs as the largest contributing factor to above-target inflation due to rising mortgage interest and rents, which it does not expect to return to its 2% target until next year.
Although many components of the CPI are showing signs of normalizing, with the Bank noting in its Monetary Policy Report that monetary policy is working as intended to slow growth, core measures are still running higher than the Bank’s preferred range.
The Bank is still concerned about risks to the outlook for inflation, particularly underlying core inflation, and would like to see “further and sustained easing” in this regard while it focuses on economic and other inflationary factors.
The Bank of Canada’s next scheduled interest rate announcement will be on March 6, 2024, and will publish its full outlook for the economy and inflation in its next Monetary Policy Report on April 10, 2024.
AVOIDING HOME BUYER’S REMORSE
Buying a home can be an emotional roller coaster which can cause people to make mistakes as they get swept up in all the excitement. Here are a few common buyer blunders to be aware of:
List to Last
Make a list of essential features you can’t live without. It's easy to be dazzled by amazing curb appeal or an inground pool but don’t be taken in if it lacks the essentials.
Stick to Your Budget
Buyers who overextend themselves may be forced to sell if their circumstances change so avoid temptation by only viewing homes that are in your price range.
Location, Location, Location
Choosing a location that suits your lifestyle is crucial, so determine how far you’re willing to be from public transit, shops, restaurants and other amenities.
If you’re looking to lay down roots and start a family in the next few years, it’s important to consider how close you’ll be to parks, playgrounds and local schools.
Master the Market
The home you fall in love with today could be gone tomorrow. It’s therefore important to get acquainted with the market ahead of time so you'll have the confidence to act swiftly when the home of your dreams hits the market!
Inspect the Unexpected
Having the home inspected by a professional home inspector will provide you with peace of mind as you’ll have a better idea of any potential issues.
The real estate process can be an emotional roller coaster so it's important to have a knowledgeable agent by your side to help you navigate the twists and turns you’ll face along the way.
House hunting should be a fun and exciting experience but it's important to stay grounded so that you don’t jump into a long-term commitment that you may later regret.
As long as you conduct your research ahead of time and are well aware of your wants and needs, you'll be able to move forward with confidence and peace of mind.
If you ever have any questions about the Vancouver real estate market, please don’t hesitate to get in touch – it’d be great to hear from you!
PAYING DEBT PAYS OFF
Debt management is a topic that’s usually avoided but openly discussing this awkward subject with your loved ones can help them avoid a lifetime of financial woes. Here are a few of the basics:
Make a complete list of all fixed expenses such as rent/mortgage, car payments, utilities and groceries. Next, list variable expenses to see what can be reduced or eliminated.
Your Best Interest
Prioritize your debts so you can focus first on paying off high-interest, non-deductible debt such as credit cards and unsecured loans.
Monthly payments can be lowered by consolidating debt through a secured line of credit as the interest rate will usually be much lower.
When unexpected money falls your way, put it towards paying down the principal of your debt as it will dramatically reduce the length and expense of your loan.
Getting ahead of debt is key so be proactive and reach out to creditors before things get out of hand as they’ll often be willing to work with you to help make things more manageable.
Discussing debt can be uncomfortable, but doing so can help your loved ones avoid a financial crisis that could devastate their credit rating and prevent them from borrowing money at attractive rates.
Almost everyone feels the credit crunch at some point, but with the proper game plan in place, you can shake off the shackles of debt and pursue a path to financial freedom!
VANCOUVER REAL ESTATE QUESTIONS
P.S. Please let me know if you'd ever like a hand finding your dream home or even if you're just curious about what the house down the street sold for. I'm always happy to help 😃
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