BCREA had come out with a prediction for an average home sale in Greater Vancouver next year to be a whopping $1,030,000. Now, since the market has continued to slow down (specifically for detached homes), the prediction has been corrected to $940,000.
When housing prices fall, it could cause people to default on their mortgages. Some experts are concerned that with the rising prices Vancouver had been seeing before, people are stretched too thin with their purchases. With the steady decline in housing prices, there is a chance that there will be a higher number of people defaulting on their mortgages next year.
A decline in real estate can also lead to a decline in construction of new homes, marketing for new homes, etc. Although the market is still higher than where it was a few years ago, this slow down does seem daunting after what we have been seeing before. We will have to continue to keep an eye on the market to see how things go.
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