Vancouver Townhouse: Renting Vs Buying in 2024
If you’re in the market for a townhouse in Vancouver, when best time to buy?
Like many would-be homeowners, you’re not alone if you struggle to answer this. Whether it’s a condo, single home, or townhouse in Vancouver, high prices mean that even small changes can have a significant financial impact, especially with rising costs of living.
It’s no secret that Canada’s housing market has been a rollercoaster over the last few years. Rising interest rates combined with a two-year ban on foreign buyers temporarily depressed housing prices. However, a shortage of supply soon reversed the trend. The result? Most homeowners have no idea when to invest.
In truth, there may be no right time. What matters is what’s right for you. Selling trends released by WOWA in November revealed a monthly decrease of 5%, which tempered an annual growth rate of 7.2%. Townhouses in Vancouver increased by 0.5% month over month, with yearly growth matching that of detached properties.
Market predictions for 2024 include a 2% increase in residential prices and a 3% dip in sales. In other words, slow but stable growth. However, mortgage rates at highs not seen since 2001, coupled with home prices, have made it hard for homebuyers to qualify for a mortgage. For many, renting remains the default option. And while it has long been synonymous with a lack of personalization, tiresome landlords, and endless rent increases, it does afford some advantages, including an ability to relocate, zero maintenance/taxes, and less money down.
For people with the means to jump into the market, there is solid reasoning to invest in Vancouver’s real estate market, including:
- Building equity and net worth
- Potentially generating rental income from extra space
- No more rental increases/rules
Today, Vancouver’s housing market is tipping towards a buyer’s market, meaning there are currently more homes and less demand. Additionally, fewer buyers mean less competition. Winter sellers are usually motivated to sell, leaving room for price negotiation. If mortgage rates drop, which analysts predict could happen in mid-2024, buyers on the sidelines will return to the housing market. This would likely drive up competition and prices. Right now could be a great time to invest for people with a down payment and good credit. Townhouses in Vancouver remain a relatively affordable stepping stone into the housing market for professionals and young families who want to stop paying rent and start building equity.