The thriving real estate market in Vancouver took a downturn in 2018, but it seems to be growing quicker than expected. A recent Central 1 Credit Union study concluded that buyers are coming back to Vancouver B.C. Market, especially in the lower Mainland.
Let's have a look at the jumping back of the Vancouver real estate market.
The potential bounce-back is due to incentive programs for first time buyers, progression in jobs and wages, and a fall in mortgage rates. In some situations, there has been a dramatic drop in mortgage rates around 2.5 percent. Many Vancouver Real estate agents believe that people will also see a fall in price by 10 percent, and investors can consider it a suitable opportunity to enter the market and jump into it.
Home sales dropped by 20.3 percent throughout the province in 2018, and the study says that this is due to two key factors— the inclusion by the B.C of the foreign buyers' tax and the State and government mortgage Stress Test.
A Vancouver realtor would say that many people were buying real estate properties in 2016. A surprising number of people thought that this price rise would go on indefinitely. It was witnessed, especially in the condo sector. Many were buying it in presales and then selling it for a lot more money when the presale was over. However, that will not happen in the current boom of the Vancouver real estate market.
The Luxury Market
The luxury market, which depended for much of its revenue on foreign buyers, has suffered a great deal.
However, the research concluded an improvement in the total economic environment and house sales and a spike in home prices that comes with increased confidence.
The average house price in 2018 in Metro Vancouver was $740,000 as per the study. The amount fell this year by almost 7 percent, down to $690,000. Realtors predict the price to increase to $715,000 by 2020, and the price may reach $760,000 by 2021.
News for the Renters
The statistics are not as great for the renters as they are for the buyers. Vancouver has a vacancy rate of 1.4 percent, and rentals in 2018 rose 6.1 percent. Vancouver realtors say there's not enough inventory available to meet the market demand.
What is needed, is a lot of rental growth in this situation, and Vancouver real estate agents don't think that they have got plenty given the population increase in Vancouver.
Vancouver realtors believe the purchase appeal could drive certain renters into the real estate market and theoretically free up rent spaces. It's an excellent time to get in. Vancouver has gone downward for a while. If they can afford it, this is an excellent time.
Vancouver has been down for a while, however, now it is jumping back, and the buyers and sellers can make the most out of it.
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