Peak housing prices are now over in Vancouver
The housing market in Vancouver the past 8 years had been supported by wealth from new immigrants, not income. A lot of this is wealth from newly arrived immigrants, although it is difficult to quantify it.
Many of the purchases make by home buyers the past few years don’t need a mortgage because they have the cash and can buy a house outright. But the supply of people is now diminishing, due to the changes happening in the immigration policy for new immigrants.
There is a slowing down in people coming to Vancouver, especially foreign residents with a lot of money. With lack of buying activities, the market looks very ripe for a meaningful correction. Some critics are predicting a 10% or more drop in home prices in Vancouver. View homes for sale in Vancouver West.
A drop of 5% to 10% can be expected
Although the average price of a detached home in Vancouver decreased slightly year-over-year, ad condos dropped just 3.6% year-over-year, 2013 could witness a more significant drop in home prices as supply begins to flood the market in the spring.
The real estate market has been slow in Vancouver the past 12 months. Sellers have not reduced their listing prices much. Buyers on the other hand, stay on the sideline hoping prices to fall more. The current real estate market in Vancouver can best be described as a ‘stand off’ between two opposing parties.
It is now generally accepted that home prices are going down the next year or two. In high prices areas like Vancouver West, Richmond and the North Shore, a marked softening in home prices was recorded the past few months.