The Real Estate Board of Greater Vancouver says 2014 was a “Typical Year” for Real Estate as the number of homes listed ranks 5th when compared to the last 10 years of listings. Also, the number of Sales rank 5th when looking at the last 10 years of sales. What we need to remember is 2005, 2006, & 2007 were huge years leading up to a market correction in 2008. Since the correction trends have been upward reaching a current peak in 2014.
Also, it is not fair to lump all Vancouver properties in to the “typical” segment. For example the average price for detached homes in Vancouver Westside increased 10.6% where condos went up 6%. I think it is fair to say the more rapid increase for detached homes is largely due to no new supply coming on the market. Contacting a Vancouver Realtor who understands all these differences can help you decipher what is going on in the segment of the market you are looking in.
Interest rates: We have experienced extremely low interest rates throughout 2014, with some indication of a minor potential rate increase in 2015. These reduced rates have led to increased Buyer activity, as down payments will stretch further.
What to expect for 2015 is a very difficult question to answer with any certainty. What I can tell you is some very basic economic principles of supply vs demand in the Vancouver Real Estate Market. The Supply in Vancouver is relatively limited and almost fixed in a sense due to the geographical surroundings our beautiful city. Mountains, water, and the US border push supply out towards the valley… as far as Demand goes Vancouver is consistently one of the highest ranked cities in almost every livability study out there. Not much supply coupled with an awesome city should have an upward pressure on prices if nothing else the Vancouver Real Estate market should remain pretty steady for 2015.
I have read many articles from perpetual renters saying a huge correction is due… or decreased oil prices will be the demise of Vancouver Real Estate… I think those people will continue to rent and watch the Real Estate market continue to make gains without them!
Buy real estate and wait… don’t wait to buy real estate!
Don’t hesitate to contact me at any time by phone, email or text to answer any real estate related questions you may have.
Vancouver Realtor - Pete Shpak