There is a new energy abound in Vancouver that began early in the New Year. I am not going to bore you with all the graphs and copious amounts of data we have to show you the carnage over the past 18 months but in summary: detached houses have softened, and strata condominiums and attached townhomes/duplexes have held their own and appreciated a healthy amount. On a lighter note, call volume is up, plus appointments for listings and buyer meetings are up dramatically, signalling a very promising spring market.
Now that the dust has settled from 2018, we are witnessing many buyers stepping back into the market including first time buyers, clients purchasing investment property, and upgrade buyers taking advantage of the compressed market. The threat of increased interest rates has calmed and current rates, which are well below the historical average, are holding nicely (see Paula’s Mortgage Update article).
With inventory beginning to build and buyers entering into our market we will likely see a stabilization and possibly some growth for 2019 despite the doom and gloom we are all reading in social media and the newspapers. Remember the media reports on past data, but we are on the front lines and see firsthand the activity and behaviour in our market. And it’s looking very very promising.
With some political windows opening up, beginning with the Nanaimo provincial by-election January 30th, there is further opportunity for a political shift back towards the right which would be a positive impact on our market. The upcoming Federal election this October 21st could also offer some easing of existing restraint programs assisting new buyers. The bottom line is our population in Greater Vancouver is expected to grow by 30,000 people per year, or 1.2 million people by the year 2040 for a total number of residents of 3.4 million. All of these new Vancouverites will need a place to live. Even with increased densities and increased rental stock, the demand on this limited supply of land will grow significantly. So, the opportunities are in place for our market to come back and, with any luck, 2019 could be a ‘revival year’ for Vancouver real estate.