The Bank of Canada (BOC) once again held their key benchmark overnight interest rate at 5%. They also left the door open to future rate increases if necessary.  However, for now, it seems like interest rates may have reached a plateau for the time being. This offers some predictability to where interest rates might be for the next little while.

It appears that mortgage rates might be at their current levels for the near-term. With a Fraser Valley housing market that is in overall balanced territory, with respect to sales-to-active listings, the pause in interest rate increases is positive. Now, buyers and sellers can thoughtfully and carefully assess their next moves, knowing that things are likely to be steady with respect to the cost of money and financing.

See video below from BNN: Panel Discusses Bank of Canada holding rates steady at 5%

It seems like the residential real estate market is once again returning to more balanced conditions, overall. For September 2023, the sales to active listings ratio was at about 19%. A balanced market is considered to be when the sales to active listings ratio is between 12-20%.

See the graph below:

It seems that higher for longer mortgage rates are presently keeping many potential homebuyers on the sidelines due to higher financing qualification standards (i.e. the stress test).

For people already in the market and looking to simply move and swap equity from one home to another, the calmness of today's housing market may be a good time to consider moving. Places like Surrey, Langley and Abbotsford were once smoking hot seller's markets during the pandemic. Multiple offer situations were commonplace.

Things have now slowed enough for people to be able to conduct proper due diligence and the ability to be very thoughtful with their purchases and sales, without the stress of urgency. Balance can be great for some market participants.