Since the recession that began in late 2008, Vancouver real estate has been heralded as one of the strongest markets in North America. Even though housing prices dropped marginally at the end of 2008 and beginning of 2009, the market rebounded quickly and it was not long before record prices were being set again. Add to that historically low mortgage rates and it’s hard to imagine that real estate in Vancouver is headed for troubled waters.
However, since the end of the Olympics in 2010, speculation about the health of the market has become increasingly negative. For the most part, experts are avoiding describing the condo/townhouse market in Vancouver as a bubble on the verge of burst. Prices have increased steadily over the past couple of years and a catastrophic decline is unlikely. Still, there are a disproportionate number of unoccupied condos in Vancouver at the moment, mostly because of the inventory available in the Olympic Village. Even though a sudden correction is unlikely because of low interest rates and rising condo prices, we may see some deflation of what many experts are referring to as Vancouver’s “balloon” real estate market. So, while a burst is unlikely, minor declines in prices, decreases in sales of high-end properties, and a higher than usual unoccupied inventory may mean savings for some buyers.
Robust, resilient, growing: these are just a few words that are often used to describe the Vancouver condo market. As much of the United States and even parts of Canada suffered dramatic declines in housing sales and prices, the Vancouver Real estate market continued to grow despite economic uncertainty. Some experts point to the interest of foreign investment, or the standard of living in Vancouver, and even the climate (despite all the rain) as reasons why the market in Vancouver remained strong. Nevertheless, the condo and townhouse market in Vancouver has been subject to more controversy over the past several months, with some suggesting that the market could be heading for a meltdown. checkout more details at https://placerealestate.ca/downtown-vancouver-condos/west-end-condos/
Let’s be clear about something though, the 2012 outlook for the Vancouver condo market is still strong. Our economy is growing and interest rates remain low making the market stable for the foreseeable future. Fortunately, buyers are seeing a bit more flexibility in the market and as such they are investing in Vancouver since there are more affordable options for condos in and around Vancouver. There is little question that the market has cooled in the last year or so, but with plenty of foreign interest and an improving economy any market corrections are likely to be minor.
So what does this mean for players in the condo market? First of all for sellers, they might expect it to take a little longer to get a reasonable offer on their home. Sales continue to be strong throughout Vancouver, but because of the available inventory, buyers are taking more time to make a decision as they consider more options. And for buyers, while they should still expect condo prices in Vancouver to remain above the national average, they currently benefit from more choices.
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