There is so much noise out there in terms of what is actually going on in the real estate market in Vancouver it is hard to make sense of it all. There are stats, figures, numbers, percentages, and no two experts seem to agree on anything. You have developers predicting unmitigated growth. The papers are calling for the sky to fall. And everyone in between is frozen. Not doing a thing.
Home sales continue to dip. January of this year showed that sales were 18.7% below the 10-year average and have been lower than the average for the last seven months. However, this has only led to a slight 6 percent decrease in prices since the peak last spring.
The reason? Homeowners are patient. They would rather take their home off the market than sell at a discounted price. You can hardly blame them, but combine this with tighter mortgage regulations and tougher lending practices and this makes it difficult for first-time buyers to enter the market. Even in a time of record low interest rates.
There is a reason for this. The government is looking to ease the effects of a sharp decline. They do this by keeping the cash buyers in the game and slowly making it more difficult to access easy credit. By reducing the number of eligible buyers with lower incomes, they are easing the economy into a gradual shift for when and if interest goes up. It’s a protective measure.
A panel made up of members from Bosa Industries told an audience this week that there is no bubble in Vancouver real estate, prices will stay put as long as interest rates remain low, immigration numbers are upheld and the European economy doesn’t collapse.
New listings in Greater Vancouver have been in decline. January saw only 5,128, or a 10.9 percent drop from January of last year.
If there is simply too much information for you to make an informed decision on your own, it is time to bring in an expert you can trust. The idea behind having a Vancouver REALTOR® who is also your ally is that you can wade through all of the numbers and nonsense to get a true feel for what is really going on in the Vancouver, BC real estate market today.
Give me a call. I don’t bite. And I’d be more than happy to help you navigate this sea of stats and speculation.