New entrants into the housing market will likely face some headwinds, which include higher interest rates and more stringent mortgage qualifications. Much of this is an attempt to slow down the runaway housing market. However, the high entry cost of housing in Vancouver could exacerbate the effect of the new interest rates. The likely result will be greater interest in condo and townhouse listings.
This November, the composite benchmark price for all residential properties in Metro Vancouver was $1,046,900 on MLS. This represented a stunning 14 percent increase from November 2016 and a 0.4 percent increase compared to the previous month.
“Attached property sales (Vancouver townhouses, condos, and duplexes) in November 2017 totalled 446, an 18.6 percent increase compared to the 376 sales in November 2016. The benchmark price of an attached unit is $805,200. This represents a 17.9 percent increase from November 2016 and a 0.3 percent increase compared to October 2017,” explains Ariane.
With construction starts on new strata projects down 58% as of November 2017, the new regulations could trigger a spike in demand for Vancouver townhouses and other strata properties, which remain relatively affordable.
“At this point, the average price of a BC home is slated to increase 4.6% over 2018,” says Ariane Benjamin. “As a Vancouver realtor, I specialize in helping people buy and sell townhouses around Vancouver proper. We’re looking at an interesting start to the year, so I encourage you to checkout our featured Vancouver townhouse listings and sign up for the free Townhouse Watch, which sends out an email alert you when a property matching your criteria becomes available.