There’s a lot of speculation about the Vancouver real estate market and where it’s going. With talk about falling sales and house prices, the question is whether or not it’s a good time to buy. While opinions are divided in regards to the Vancouver housing market forecast, we can offer some insight.
Vancouver Housing Market Forecast for 2017
There’s no arguing that sales have fallen. However, this is consistent with previous years. Historically, January and February are typically slower months in terms of house sales, so this slowdown isn’t uncharacteristic.
As pointed out by The Globe and Mail, prices also, “slipped last month to $896,000, down 3.7 per cent since July.” However, they’re still up 15.6% from January last year.
This indicates that while houses have come down in price, the reduction is not significant.
With this slight drop in housing prices and talk of them falling even more, it may appear to be a buyer’s market. However, there are a few factors to keep in mind.
To gain a better understanding of the Vancouver real estate market and what a slow sales season could mean in terms of housing prices, we turned to Burnaby Real Estate’s Realtor, Danny Camele, for further insight.
Currently, there aren’t many listings and buyers. However, Danny assures that, “the sales are definitely there.”
He pointed out that areas like Vancouver, East Vancouver, North Burnaby, West Coquitlam, North Vancouver, and New Westminster are especially stable areas for sales in the Vancouver real estate market.
He also says that “there won’t be a significant decrease in housing prices this year.” The reason being is that “there are enough genuine buyers and people looking to relocate to maintain prices.”
What Does this Mean for Buyers?
Even though sales are down, according to Danny, it’s still a seller’s market. However, he believes that it will eventually even out to a balanced market.
“If you’re a first-time buyer, prices are still significant,” Danny explained. However, he advises that “it’s never a bad time to buy.”
Furthermore, even though sellers still have the advantage in terms of price, Danny believes that buyers can benefit in other ways.
“It may not be a buyer’s market in terms of price, but from all other aspects, it is. Buyers have more time to make a sound decision, get their inspections done, and find a home that has all of their must-haves,” he explained. “Unlike last year, current buyers won’t have to settle.”
What Will Happen if House Prices do Fall?
Danny maintains that prices won’t fall, and if they do, the decrease won’t be significant.
He reminded us that there have always been peaks and valleys (ups and downs) in the Vancouver real estate market. However, “there’s always been a trend where the next peak is always higher than the last, but the next valley isn’t lower than the previous one.”
“Vancouver has always been a stable market in terms of housing,” Danny said. “And by stable, I mean that it’s always been growing.”
With this in mind, it’s reassuring for long-term investors and homeowners to know that any dips in the market aren’t likely to be lasting or significant.
If you’re looking to buy a home, see why living in Burnaby may be right for you! Be sure to also use our free Mortgage Affordability Calculator and our Land Transfer Tax Calculator to help you make informed decisions.
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