There are certain factors that always have direct effect in real estate market:
- Provincial Government interference by implementing additional taxes and or regulation changes
- Federal Government interference in policy changes and economic effect decision that impacts consumers confidence in investment
- Global economic effect and stock market distress.
- War, turmoil, and or pandemic which causes paranoia in consumer investment.
To pick the main reasons of why Vancouver and BC real estate market has recently shifted toward a more balanced market, we can pick the first 2 options, where our provincial government directly interfered with real estate affordability and implemented additional taxation for foreign buyers, empty homes and as well as speculators. In addition, bank of Canada, added a regulatory stress test for every approval of mortgage and has consistency increased the interest rate every quarter.
Working alongside trends and data analysis as Vancouver Realtor, it is my goal and duty to help my clients in every market. I have been asked in many occasion from my Vancouver real estate buyers, should I buy and invest in Vancouver homes or I should wait longer?
Responding to this question cannot be generalized and it must be case by case as each client’s motivation is different.
To understand your motivation as a real estate purchaser in Vancouver, always ask yourself the following questions?
- Why am I interested in buying Vancouver real estate?
- Do I “need” to buy or I think I should buy?
- Are my finances in order to afford a real estate?
- Do I expect the prices to drop even further?
- What if I wait and my pre-approval term expires and interest rates are increased?
- Can I get a good deal now?
These are just a few questions you can ask yourself to determine your motivation. Also it is vital to discuss the trends and history of real estate in the neighborhood and area you want to invest. You Vancouver Realtor can share the data and chart of activity of the past decade for your review. Although no one can predict the future market, but past trends and previous data can shed a light on our current situation. It is important to know that market fluctuates and despite of its current downward activity, the trend shows the prices always inflate as global economy inflates. The question is “are we at the start of the downhill or at the bottom?”. Regardless of the response, if you can negotiate a price range where you see fit and desirable for that property at any market, then were we are in regards to downhill or uphill activity, is pointless.