2018 really was a year to forget in many ways. From taxation measures to other government interventions; there just seemed to be one thing after another designed to slow the housing market down considerably and reduce the average sales price.
So what’s in store for the rest of 2019? A plateau? An even greater slowdown? Or perhaps a much hoped for recovery? And what about house prices?
Every industry expert, broker and economist will all have their own opinions on this; forecasting always carries a large chunk of the unknown and there is often more than one right answer. Let’s have a look at what we think.
Well, let’s start with some facts, the Canadian Real Estate Association state that the average sale price of a home in Vancouver in 2019 is approximately 0.9 percent higher than in 2018; the previous year’s increase was 0.6 percent, so this is unlikely to be just market variation on its own.
Looking at median prices, you could reasonably expect the median house price to fall by around 2%, but then increase very slightly as we move into 2020.
We are expecting a drop off in Metro Vancouver, falling to around $1.2 million. It’s a drop, but it’s still a sum that is out of reach for the majority of buyers out there currently. The condo market remains an affordable option in the scheme of things however.
So as a general rule, we are expecting a flat lining of prices in provincial average homes (and no crash) with slight declines in both the Capital region and Metro Vancouver. Affordability in some areas remains an issue and securing financial backing from banks in the form of mortgages can still be a problem for those without a reasonable sum for a cash deposit.
After being a top Vancouver realtor for 25 years we say: watch this space!