“I have none of my clients lock up. “

Many suspect that ultra-low borrowing rates are continuing to levitate Vancouver’s RE market. This from a ‘horse’s mouth’, Anonymous on vancouvercondoinfo June 12th, 2009 at 7:09 pm

“I am lender and have first hand knowledge regarding speculators holding out. Most of them have VRM 0.75% to 0.90% below Prime. So currently their mortgage rate is between 1.35 to 1.50%. How many of them lock up into 5 year term when the rate was 3.5%? Very few. It is very hard for a person to lock up with a 2.0% rate increase rightaway especially if they are thinking short term to sell. I have none of my clients lock up. So if the Prime goes up next year by big numbers, you will see lots of blood.”

One response to ““I have none of my clients lock up. “

  1. Hi vreaa, interesting blog. I’d suggest including some other anecdotes on the other side. I’m hearing tons of stories about properties selling over-asking.

    In my neighbourhood I come across many for sale signs and recently — I kid you not — about 4 in 5 have “SOLD” signs on them. This is a very different market from a year ago and July sales look to be close to the highest on record.

    Some have speculated the recent high sales numbers are due to low interest rates expiring near the middle of August. Perhaps. If there are a couple more months of optimism in the world markets and long rates go up, we could see sales slow significantly in the fall.

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