Contrary to popular belief, Vancouver's housing market is still doing well. Properties are being sold quickly and at high prices.
However, many homebuyers have an inaccurate perception that property prices will continue to fall, which is causing concern among Realtors who are attempting to guide their clients toward making realistic offers. Some buyers are even offering 25% off the listing price in the hope of securing a bargain, which isn’t supported by the data.
While the median house price in Metro Â鶹´«Ã½Ó³»has declined by 10 per cent, falling from $1.98m in January 2022 to $1.8m in January 2023, the drop in the condo market has been only 3 per cent, with prices decreasing from $1.05m to $1.02m over the same period. Clearly, the savings are not as significant as some people believe.
Unfortunately, many , particularly those on TikTok, tend to exaggerate bad news, disseminate false data, and sensationalize unusual circumstances that distort the broader market trends. However, by examining data from the Â鶹´«Ã½Ó³»Real Estate Board, we can reveal the truth about the current state of the market.
Higher interest rates have slowed the property market
The Â鶹´«Ã½Ó³»housing market has been impacted by the rise in inflation. Many people believed that inflation was only temporary and that things would return to normal once supply chains were restored after the Ukraine war ended. Stricter mortgage lending rules, higher interest rates, and a cooling of buyer sentiment have all contributed to the decline in property prices.
The good news is that the bottom of the Â鶹´«Ã½Ó³»housing market is likely already behind us. As soon as we are certain that the rate hikes are over, buyers will return, and prices will start to rise once again. Â鶹´«Ã½Ó³»continues to attract people from all over the world.
The market is cyclical, and while there are periods of growth and decline, Â鶹´«Ã½Ó³»remains an attractive location to buy real estate.
The housing market hadn’t slowed down much
A limited supply continues to cause high property prices to persist, and buyers are rushing to secure properties, with the typical home going into contract in about seven days.
In fact, the market has become even more competitive, with many homes being sold above their asking prices. Around 48% of homes are being sold for more than the listed price, compared to 37.5 per cent in March 2019.
Although sales are decreasing, listed homes are still selling swiftly, and according to board data, the HPI for detached properties is only down by 9.1 per cent, while for condos it is 1.1 per cent and for townhomes, it is 3 per cent. The reason for the greater decline in detached properties is that there are fewer buyers willing to make larger purchases during unstable times.
The current housing situation in Â鶹´«Ã½Ó³»is unusual, and the correction has created opportunities in the market, particularly for those looking to upsize. The decline in property prices could allow someone to sell a $900,000 condo at a $9,000 discount and buy a $2 million house at a 10 per cent discount, saving $200,000.
Â鶹´«Ã½Ó³»property market data
According to data from the Â鶹´«Ã½Ó³»Real Estate Board, detached properties in Metro Â鶹´«Ã½Ó³»are currently taking an average of 51 days to sell, while condos are on the market for 42 days, and townhomes for 43 days.
It's important to note that while there have been some areas in which property prices have dropped significantly, such as the Sunshine Coast (-8.7%) and Whistler (-5.5%), other areas have seen an increase in property prices, such as Delta (+8.7%) and Port Coquitlam (+3.3%).
For those interested in purchasing a condo in Whistler or Squamish, now could be a good time to explore the market.
Although opportunistic investors may take advantage of these dips in the market to snap up deals, most existing homeowners remain calm and do not panic sell, which limits the supply of properties available for active buyers. of the property owners in Â鶹´«Ã½Ó³»do not have a mortgage, so higher interest rates have not caused significant pressure on them to list their homes.
Living in Â鶹´«Ã½Ó³»will always be desirable
It's crucial to recognize that the constant spread of clickbait misinformation, which is often taken out of context, is a risk to both the market and consumer confidence. Therefore, it’s important to adopt a long-term outlook and abandon the day-trading mentality when buying a property. Instead, people should concentrate on the long-term advantages of property ownership, especially in Â鶹´«Ã½Ó³»where the returns have historically been very high.
Vancouver's real estate market has always been a popular destination for home buyers and investors alike due to its many unique features. The city boasts an enviable location on Canada's west coast, with stunning mountain ranges on the North Shore, and world-class hiking and skiing opportunities. , abundant recreational activities, and beautiful scenery make it an attractive place to live.
Moreover, Vancouver's strong economy is a major attraction, with a diverse range of industries such as technology, film and television, and natural resources. Its strategic location as a gateway to the Asia-Pacific region and a bustling port make Â鶹´«Ã½Ó³»an economic powerhouse.
Another significant factor in Vancouver's appeal is its multicultural population and rich cultural scene. The city is renowned for its vibrant arts and music community and hosts numerous festivals and events throughout the year. It is also home to several world-class universities and colleges, including the University of British Columbia and Simon Fraser University, making it a popular destination for students and academics.
Furthermore, market is known for its high demand and limited supply, making it a hot market that has proven to be a sound investment for many over time. Investing in Vancouver's real estate has been a wealth-building strategy that has worked for many. By buying a small house and holding on to it for decades, many have become millionaires.
Alistair Vigier runs ClearwayLaw, a website that allows people to learn about real estate law and leave ratings for every lawyer in Canada.
