Metro Vancouver condos sales were projected to take a hit this month, due to higher mortgage rates. But it appears that many buyers missed that memo.
The new Bank of Canada rate is at its highest level in 9 years, at 1.25%, and since January 1st, all buyers are now subject to a federal mortgage stress test, but so far the pace of condo sales has not slowed.
It appears that Metro Vancouver is seeing a 'slingshot' effect as more buyers flood into the market fearing even higher interest rates on the horizon. The strong 2017 sales momentum is carrying into this year.
The hike in the interest rate doesn't appear to be making a lot of difference in Vancouver or affluent Metro suburbs, but will likely hammer lower priced areas.
The buyers who are 'entry-level' are already in hock up to their eyebrows and are the ones who are packing record high debt and would already have problems qualifying for mortgages.
At least 2 more Bank of Canada interest rates are expected this year, which could drive many of the marginal homebuyers out of the market altogether.