Another year has already begun and with our mellow winter, it does not seem like the winter slow-down even happened. December was one of the busiest months on record. Even though it has be forecasted that 2014 will be a steady year but nothing that exciting, it has already started off with a bang. The Bank of Canada has decided not to move prime which resulted in several banks decreasing their interest rates again, but has resulted in a lower loonie, due to a lack of consumer confidence, which again makes Canadian products and properties cheaper and more attractive to foreign buyers. So as the properties continue to sell, we have to think, how and when does this stop? Vancouver is now considered the second most expensive place to live in the world (after Hong Kong), Toronto has economists betting on when the bubble or Rob Ford will burst, and the Prairies continue to work along and see everything get more expensive. On a good note, Corporate taxes are at an all time low of 15%, which will attract more companies, which means more jobs, which in turn requires more workers and more places to live. The problem with this is that a large portion are looking to rent, and with shrinking supply, the rental rates are getting higher. I saw this week a 2 bedroom basement suite close to downtown being rented out for $1,400/month....Crazy! As a home owner, why would you sell your place if you can rent it out and cash flow? Well first off, there may be tax benefits, and secondly with a decrease in the amount of properties for sale, the chances are that if you have a nice property and price it well, you will get multiple offers and potentially more than you asked for. Yesterday, a foreclosure came on the market, and by the evening there were 8 offers, 5 that were unconditional, and the Bank decided on one of the 5 on the same day. All in all, I feel that 2014 will be a fast paced and successful year.
Contact me if you are interested in Buying or Selling your properties.