Is it really 'doom & gloom' for the Greater Vancouver real estate market?
No, it is not! Beyond the fact we are engaged in a predicted, controlled market cycle, the mere 'correction' is healthy and plateauing in its effects.
The market correction in Greater Vancouver has brought the 5-year price appreciation benchmark into the 10% per annum range.
Across all of Great Vancouver, the last 90 days is showing much stability and flattening of Home Price Index value. Of the 22 regions only 6 saw changes of more than 1.5% positive or negative.
In the last 90 days condos have seen the largest loss in sales volumes (compared to same 90-day period in ’18) being down 22% vs 10% for detached and attached.
The trouble being experienced by new developments is that Buyers/Investor confidence is down. One problem is that decisions are being made on current market conditions, whereas, the development will be complete 24-30 months in the future. I would still recommend investing in our pre-sale condo market because you are buying for tomorrows future value not today's. Take this opportunity to motivate the developers to reduce their pricing to ‘match’ today’s market value rather than having to purchase at anticipated future value. This has inherently been the advantage/opportunity of purchasing in the pre-sale model.
The big losers YTD in sales volumes vs 2018 YTD are:
West Vancouver condos down 49%
New Westminster townhouses down 40%
Richmond condos down 34%
The winners in YTD sales volumes vs 2018 YTD are:
West Vancouver detached – up 20%
Squamish detached – up 20%
Port Coquitlam townhouses – up 17%
Port moody townhouses – up 16.8%
Shaun T. Carson
Investment Realtor, New Power Realty