House prices are currently seeing a slump in the Vancouver real estate market, but it’s likely that it won’t last. Ten months of declines have brought the benchmark home price down 7.5 percent since last May in Vancouver. Not only have house prices decreased, but the number of purchases has decreased as well.
However, this trend is not expected to continue, according to experts. Helmut Pastrick, the Central 1 Credit Union chief economist, said that home prices will double between 2016 and 2041. But what could this mean for the Vancouver real estate market and the people who are currently calling the city home?
A Rise in Home Prices in Major Cities
There is currently an affordability crisis on the Vancouver real estate market, and it’s not hard to tell why. Many homes in the city are now too expensive for many potential buyers, and on top of that, there are just not enough housing options in total. That can be a huge problem for people whose jobs bring them to the city. However, many experts say that it’s not up to the government to fix this problem and that it will cost approximately $650 billion in housing to help ease the affordability crisis. Instead, there have been pushes on the Vancouver real estate market for the government to support real estate developers’ continued projects.
Buyers Lacking Confidence
Because of the current problems in the Vancouver real estate market, there are fewer people looking to buy than there were even a few years ago. And if the current trends continue to play out in the way they are now, there’s a good chance that even more buyers will be hesitant to invest in Vancouver real estate. First of all, many buyers just don’t have the money to spend so much on a new home, especially those in the middle and working class. Others simply see the market as volatile and don’t want to make a mistake investing in a house that they won’t be able to sell later down the road.
Developers should pay attention to these trends and respond to potential buyers’ concerns. If buyers lack affordable housing, they won’t buy — no matter how great the home. Therefore, providing more high-cost housing may not be the way to go in the current Vancouver real estate climate.
Have you been considering buying or selling a home on the Vancouver real estate market? It may be a difficult time to go through this process, but you can navigate the choppy waters of real estate in Vancouver. Basically, it just comes down to having a reliable realtor on your side. You don’t want to have to go it alone in a market with so many ups and downs. But when you work with a local realtor, you don’t have to worry about your lack of knowledge or confidence when you are planning on buying or selling. When you are ready to take your next step into the Vancouver real estate market, be sure to contact a professional for help.