Vancouver Real Estate Sales – The market has been fluctuating in the last few months. With the release of November’s sales data, it is clear that there is a serious downturn occurring. Learn more about the possible reasons of all this. Also, what you can do to get ahead of the curve in this article.
Vancouver real estate sales declined 16.1% in November
In November, Vancouver real estate sales declined 16.1% compared to the previous month. This is the largest monthly decline since February 2016.
There could be number of the reasons for the sales drop. Firstly, mortgage rates have increased significantly since last year. This is made it more difficult for buyers to qualify for a loan. It is led to more buyers being priced out of the market.
Second, it is difficult for buyers to qualify for a mortgage, Because of the new federal stress test that was implemented in January. The stress test requires borrowers to qualify at a higher interest rate. Than they would actually pay, making it more difficult to get approved for a loan.
Last, Comparing to other parts of the country, Vancouver’s housing costs have been rising more slowly. Making it a less attractive investment for some buyers.
Despite the decline in sales, prices in Vancouver remain high. In November, $1,588,000 was average cost of a single family home in Vancouver. Which is still significantly above the $505,000 national average.
Vancouver real estate sales : Reasons for decrease
There are several reasons that have supported it. To the decrease in Vancouver real estate sales.
First, stricter mortgage rules have made it more difficult. For buyers to qualify for a mortgage. Second, higher interest rates, This is made it more expensive to borrow money for a home purchase. Finally, the inability to qualify for a mortgage has further discouraged potential buyers from entering the market.
The decline in Vancouver real estate sales is a result of each of these reasons.
Market slowing due to cooling of foreign investment and BC NDP’s 15% tax on foreign purchases in September
Another 15% tax was charged on foreign buyers of real estate in Metro Vancouver by the BC NDP government in September. This policy was aimed at cooling the red-hot housing market. This was addressing concerns about affordability. The tax appears to have had an immediate impact. With sales falling sharply in October and November.
The Vancouver housing market has recently been greatly helped by foreign investment. So, the tax change is likely one of the main causes reasons of the downturn. Another factor is the new stress test for mortgages, which came into effect in January 2018. This is made it more difficult for buyers to get financing. Especially if they’re self-employed or have variable income.
The cooling of the market is bad news for sellers. Who are now facing more competition and may have to accept lower prices. It’s also worth noting that while sales are down overall. There is still strong demand for detached homes and properties in desirable neighbourhoods. So if you’re thinking of selling. It’s still possible to get a better price. You just might have to be patient and realistic about your expectations.
Vancouver continues to rank among Canada’s most expensive cities.
Vancouver continues to rank Canada most expensive cities. It is ranked most expensive cities in the world. The average price of a home in Vancouver dropped in November. despite the fact this is excellent news for buyers. The housing market continues to be rank most expensive in the country.
Many factors contribute to Vancouver’s continuing high living expenses. Due to the city severe zoning laws. There is a shortage of new housing. which raises prices. In addition, Vancouver’s close to the ocean leads in a lack of accessible land and high development costs.
For those looking to purchase a home in Vancouver. It’s important to aware of all factors and budget accordingly. With careful planning and patience. It helps to find a property. To meets your needs and fits your budget.
Vancouver real estate sales : Sales are expected to pick up again with prices still high and demand forecasted by economists
Despite a minor decline in November, it is expected that Vancouver real estate sales will quickly recover. Economists believe that prices still are high and that consumer demand is still high.
Interest rates are still at historic lows. Which is the key factor contributing to the expected increase in sales. This allows numerous individuals afford home ownership even as costs keep rising.
Another factor supporting higher sales is that job growth in Vancouver remains strong. This indicates that more people have the ability to invest in a property.
Inventory levels are also favourable for buyers at the moment. Although there are fewer homes on the market. Than there were a few months ago, there is still a good selection available. This could help to keep prices from rising too quickly.
If you’re thinking of buy a home in Vancouver. It is right time to start your search. With sales expected to pick up and prices remaining high, It’s important to act quickly if you find your dream home.
