For the past 5 years, the Vancouver housing market has been a sellers’ market. However, Vancouver mortgage brokers are beginning to see things coming back into balance in the market between buyers and sellers.
More Canadians are taking a non-traditional approach towards buying homes, with fewer people purchasing property with a spouse, and more buying a home on their own. Nearly 50% of home buyers are also planning on putting more than 15% down on their home purchase, a figure that is 10% more than last year, according to Vancouver mortgage brokers.
After a year that saw many ups and down in the housing market, a reset has been predicted by the Urban Development Institute. In the Vancouver area, housing industry leaders are expecting to see a fall in the prices of single-family homes and a softening of the prices for newer multi-family housing.
There are also several positive things happening in the Vancouver housing market, so a long-term downturn is not expected. For a start, the Vancouver employment rate is quite robust at this time. A record number of international immigrants have also been coming into B.C. This works to ensure a demand for housing that will continue to outrun the number of new homes being built.
It is also believed that this year will bring a window of opportunity for home buyers with the introduction of incentives for buyers and off-peak home prices. Today we are seeing a rare intersection of extremely low interest rates and a decrease in purchase prices. A number of developers began resetting their prices last autumn, offering homes that were between 10 to 15% lower than the normal market price.
The slowdown in the market was amplified with the flurry of new housing taxes and the mortgage stress test changes. Many buyers have taken a ‘wait and see’ approach for now.
We may see a further decline in single-family home prices for the second half of 2019, but in many cases, this will be due to many of these homes being unrealistically priced to begin with.
If you’re thinking of buying a new home this year, please contact me to see what incentives and buying opportunities are available to you!
Vancouver Mortgage Broker