Soft Landing Predicted for Vancouver Real Estate Market
The roller coaster seems to be slowing down. As a real estate agent who specializes in townhouse sales, Ariane Benjamin, like so many others, has been keeping a close eye on Vancouver’s housing market.
In 2018, the local government introduced higher interest rates and tougher regulations to slow runaway property values that had more than doubled since 2009. The hope was to cool things down without triggering a collapse, and early evidence seems to indicate that the best-case soft-landing scenario is in fact what’s taking place.
“2018 rocked investor confidence stemming new sales and transactions, but we’re seeing an uptick in interest again,” remarks Ariane. “There’s been no boom or bust. We saw a few market adjustments on the price tag of luxury homes, but properties like townhouses and condos largely held their value. That being said, there will still be hurdles, especially for young homebuyers.
The increasing mortgage rate means that new buyers means borrowers will still be highly indebted. They’re now making the same payments for more modest properties. Moreover, Senior Economist Robert Kavcic of the Bank of Montreal predicts that price growth is going to be flat in the foreseeable future, something Canadians haven’t witnessed since the 1990s.
“Vancouver saw modest gains and losses across different types of properties in October,” says Ariane. Nationally, Canadian properties appreciated by about 2.3% and Vancouver was close to that.”
While experts aren’t exactly sure what will happen to the Canadian housing marketing, most agree it’s off the boil. The market is coming in for a landing but how soft remains to be seen.
“For many, it’s been a tough pill to swallow,” says Ariane. “But the medicine appears to be working. ”
As an experienced townhouse realtor in Vancouver, Ariane Benjamin has been tracking and studying townhouse sales and neighbourhood trends for over 15 years. Her one-on-one approach to buying and selling emphasizes a customer-first attitude and allows her to deliver results and value.
Call (604) 779-1500 to discuss buying or selling a townhouse.