Realtors are expecting home sales to drop in 2018 to the tune of about 10 per cent, but don’t expect that dip to make a significant difference in the market overall. However, British Columbia real estate prices are set to climb, according to economists with supply and demand out of sync — there aren’t enough housing starts to meet the demand. That volatile marriage is what creates price increases.
According to the Canadian Real Estate Association (CREA), a new stress test for mortgages that are uninsured may also reduce the buying power of many in the market. The national real estate picture, CREA surmises, will see about a 1.4 per cent reduction in prices and fewer closings bringing the average home price in Canada to about $503,100. Changes may make it more difficult for first-time home buyers.
In Vancouver, the yardstick for all residential homes was $1,050,300 last year, which was a 15.9 per cent increase from Dec. 2016, according to the Real Estate Board of Greater Vancouver (REBGV). Competition was most prevalent in the condo and townhouse sectors. The price of condos increased nearly 30 per cent in 2017, while those for townhouses leapt by 18.5 per cent.
No matter what the real estate market does, it seems there are always purchasers and vendors at the ready to ink a deal somewhere in British Columbia. But before putting pen to paper, it may be wise to seek legal counsel to ensure all the i’s are dotted and the t’s are crossed in any contracts. When hundreds of thousands of dollars and perhaps millions are at stake, it may be better to err on the side of caution.
Source: nationalpost.com, “2018 home sales in B.C. expected to decline, but prices climb, economists say“, Linda Givetash, Jan. 3, 2018