Despite those saying that Vancouver is poised for yet another drop, analysts looking at an upbeat May and healthy June sales are now reporting that the opposite is expected to happen. Housing prices will rise further still, and regardless of what the naysayers predict, the most expensive housing market in Canada will continue to grow.
Here are a few of the reasons they are citing:
1. Continued population growth. People are not slowing down. They keep coming over to the most beautiful place on earth in record numbers.
“As long as you have population growth,” they say, “people will need housing.”
2. Cheap money.
With rates as low as 3.7% over 10 YEARS - it's prime time to get in on low interest rates when the going is good. Rates have risen twice lately and more increases may be coming. As they say you live in the payment not the purchase price and payments will be moving up soon…..as interest rates rise.
3. Sales are representing at least 15 per cent of listings. This is a sign of a healthy market that is moving along as it should. Analysts say that a big 'jolt' in the market in either direction is not expected. The Metro Vancouver real estate switched from a buyers' market to a balanced market in March. The sales-to-listings ratio rose from 14 per cent to 15 per cent, where it is now.
4. Currently it takes an average of 54 days to sell a home whereas the average is typically 45. Sellers are negotiating longer and usually getting 95-96 percent of their asking price. This is a sign that things are more or less stable.
5. Sales are up 11.3 percent from last June, showing that things are on the upswing.
Seriously, people have been calling for a precipitous drop in Vancouver real estate since 1975-or earlier. Why are people so reluctant to admit that we live in one of the most beautiful places in the world, a lot of people want to live here, and that it’s no surprise that prices keep going up. Best you can do is get onboard this train to the top while the money to borrow is still flowing free. (See #2).