After a volatile decade or so, the real estate market in British Columbia is expected to remain rather sedate over the next few years. In fact, according the latest figures, the real estate market in the province is experiencing a mild recession. It doesn’t look as though that is going to change anytime soon.
In what has been a seller’s market in the lower mainland, declining sales and lower prices have turned the climate into one which favours buyers. There was a 17 per cent drop in the number of residential real estate transactions in the province in 2018. The median price is hovering at around $530,000 and is expected to drop to about $520,000 in 2019.
The dragging market is most apparent in larger areas like Kelowna, Vancouver, Victoria and Abbotsford-Mission. Overall sales in these areas are down 40 per cent from the same time last year. What is ironic about the market is that lower prices don’t always translate into increased sales. There are many other factors that come into play, especially the federal stress test imposed on buyers this year which made it necessary for them to qualify or a higher mortgage rate regardless of their ability to secure a lower rate.
When British Columbia residents are in the market to either buy or to purchase real estate, what the market is doing at the time is personally insignificant. People will buy and sell when they’re ready. And when it comes to contractual agreements, a real estate lawyer can assist his or her clients in a myriad of ways — from looking over offers to helping to close a deal.