Are you wondering where house and condo prices in Vancouver are heading? If you are looking to find a new home, then you will be happy to know that these prices are mostly going down. If you are looking to sell your home then this may not be the best news for you. the truth is that house prices have doubled in the last 10 years which equates to price increases of an average of 7% per year while our incomes have only increased on average around 1.5%.
House prices dropped in the summer of 2016 after the foreign buyer tax was introduced but the prices later recovered. The drop back then was a shallow drop and when you think of you, you really wonder just how volatile the market is. The truth is that prices in the Metro Vancouver area have already dropped by 12% which works out to approximately $192,000. While this drop may seem very significant just by looking at the numbers the truth of the matter is that this drop still leaves house prices out of reach for a lot of residents of Vancouver. Residents of the Westside and West Vancouver have been the hardest hit but there have been significant declines in East Vancouver and Richmond as well.
What About Condo Prices?
Within the same timeframe of 10 years, there has been a decline in the prices of Condos as well. This downturn had continued on the downward trend until last summer. While there was a decline in Condo prices it was not as notable as the decline in prices of houses.
What does this Mean for the Market?
With a market like this, buyers have a better chance of getting more house for their money. Sellers, on the other hand, will have to lower their prices to remain competitive and to increase their chances of closing a sale. First-time buyers who have been saving up for buying a home will be happy about the current market statistics but those who don’t have a sizeable amount saved up could still be second guessing buying a home at these prices.
At the end of the day, it all comes down to how much money you make and how much you have saved to help get your home. There are many people who remain in a good position no matter which way the market goes and there are those can just hope and pray that the market continues to show a decline in the price of homes.