It seems that so much has been happening in such a short time in regards to the real estate market here in Vancouver. From soaring prices, increased foreign investment and speculation, to new policies, new taxes, and now a new loan for first time home buyers, it goes to show that real estate in Vancouver is a hot topic for a reason.
But what will happen to our market now? Surely, the market has not seen so many different changes all at once, will this tank our market? The market has definitely slowed down compared to this time last year, but it is hard to say what 2017 will bring to Vancouver.
What we can point out is that foreign investment is slowing down compared to before, albeit we are still unable to determine the full effect this will have on the market. Along with this, new credit policies are also a strong factor to consider. First time home buyers are finding it more and more difficult to provide a 20% down payment for their mortgage, causing them to be tested at a higher rate around 4.5%. Along with this stress-test, we are also expecting to see interest rates rise as well.
Financial factors aside, in regards to basic supply and demand, there is still not enough supply of homes available for the population of Vancouver. Many Vancouverites that do own homes are hesitant to sell because they are afraid they cannot afford anything else. Vacancy rates are also still at an all-time low, and more and more people are finding it difficult to find a place to live in.
So… Who else is ready for the new year?
Read more about this here.