In a nutshell, here is how the Vancouver real estate market is doing in the first quarter of 2017.
From a sluggish start in the detached housing market to condo bidding wars…

1. Presales Continue to Grow Rapidly

When the new 15% foreign tax was implemented back in September 2016, there was a lot of media noise on its affect on detached-single family prices. However, it hasn’t slowed down the presale condo market. One of the key reasons is that pre-sale developments allow owners to assign a contract to another party before a project completes, which has motivated foreign buyers to shift their investment dollars toward presales developments.

2. First-time Homebuyers Have it Easier in 2017, or do they?

The BC Government’s “First-Time Home Buyer’s Partnership Loan” has set the condo and townhouse market on fire throughout Greater Vancouver. There have been reports of select Downtown condos receiving 10-15 multiple offers, resulting in sale prices over asking. The market trends are similar with Fraser Valley, where townhomes hit $422,400, up 0.5 per cent since January and 25 per cent since Feb 2016.

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3. Political Uncertainty

Housing affordability has been a delicate issue for the upcoming B.C. Election. After implementing the foreign buyer’s tax to cool down the market, we’ve seen changes being made to “relax the tax” by lifting it for people with work permits. The real question is whether the new governing party will get tougher on this issue or reduce its restriction.

4. Detached Market Supply vs. Demand

Although sales volume has been lower in comparison to the first quarter of 2016, we haven’t seen a “mega” price correction to offset the substantial price jump from the previous year. The pace of sales for detached home market has been picking up steadily, and we can likely expect it to continue as we move into the Spring market.

5. Luxury Homes Sales Slow Down

The 15% foreign buyer’s tax, market uncertainty, and snowy weather all contributed to a stall in the luxury market. The reality is that clientele in the $2,500,000+ range are mainly foreign buyers and this niche sector will be the slowest to recover.

Call Vancouver’s Real Estate Experts

Empyr Living is a boutique real estate agency in Vancouver, BC. Our real estate agents are experienced specialists in buying and selling real estate in Vancouver.

Looking for a home for sale in Vancouver? We can help. Call us at (604) 889-3368 today!

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