Many Questions, Fewer Definitive Answers
Probably the most common questions I hear talking to people in Vancouver are “How’s the market doing?”…”Are prices going to keep going up?”…”Is there a bubble?”
When it comes to the real estate market, especially in Vancouver, there are always lots of questions and not many definitive answers. One thing is for certain, though: nothing compares to the frenzy of activity we saw in 2016. To compare the current market with what happened last year would be an apples to oranges comparison. In truth, the real estate market is affected by many factors including the stock market, the Canadian dollar exchange rate, changes to mortgage rules and rates, among many others.
Provincial Election Looming Over Real Estate Market
This year, one factor that may play a part in determining how the market reacts is the upcoming BC Provincial election. There’s no doubt that politics can play a part in shaping the course of real estate markets. Last year, the current Liberal government enacted the Foreign Buyer Tax which temporarily slowed market activity as people waited to see what consequences may result from the new legislation.
So far in 2017, inventory of properties listed for sale has been lower than has been typical in recent years. My opinion is that many people are awaiting the results of the election to see which party will be governing our province going forward. Who will be the new Premier and what involvement will they have in BC’s real estate industry? Last year’s actions by Premier Christy Clark showed people that the government can take action (ill-conceived as it may be) that affects the market, and people want to feel their investment in real estate is secure. An NDP-led provincial government may influence buyers and sellers to behave in one way while a pro-business administration may inspire more market confidence and encourage investment and upgrading to larger homes.
What Does the Summer Have In Store?
Demand is so pent up this year from a lack of inventory that a flood of new listings may make the coming summer a hot one for real estate. Let’s hope the weather is warm, too!
Do you have questions about what’s happening in the Vancouver real estate market? Would you like to know what your home would sell for and how it compares to other properties on the market? Contact me at firstname.lastname@example.org or 604-910-7777 and I’ll be glad to provide you with a current market value of your property.