Real estate market remains stable heading into 2017Posted on December 08, 2016
2016 has been far from a normal year for the Metro Vancouver housing market, but the latest market statistics from the REBGV have shown that stability has indeed returned to a once very heated real estate market.
While many have been predicting doom in the form of a 2008-level housing market crash, home sales and listing have remained at just below the 10-year average, and are showing great stability, down a mere 0.9% from last month.
Gary Serra, owner of Gary Serra & Associates, is confident with where the market stands. “There’s really not a lot to complain about. People were worried that the new rules and regulations from the city, and the provincial and federal governments were going to adversely affect an already cooling market, but in fact these safe guards have helped protect homeowners, buyers, and ensure the security of the market as a whole,” Gary Serra said.
During the first half of 2016, prices in the region were climbing month over month at a rate that had some market experts worried. But the new stress testing of mortgages for homeowners has not caused a steep decline in house prices as predicted.
There has been a slight drop in demand in the detached home market, but the condo and townhouse market remains strong, and prices are essentially level against July of this year. New listings on the market were also up only 3.6%, showing that confidence in the housing market remains strong and there is not a rush to sell.
All of this has industry experts agreeing that, while there has been slight downward pressure in the market, prices have stabilized and should be expected to start climbing again. What does that mean for buyers? It means that NOW is the perfect time to buy.
Gary Serra said: “People who have wanted to move up in the market but weren’t sure they’d be able to afford it find themselves in a special position. Homes at the higher end of the market may be worth less than they were 6 months ago. Smart homeowners are seeing their window to make a move to get into a section of the market that was inaccessible to them even 6 months ago, let alone when they got their first mortgage.”
Indeed, many savvy homeowners on the market have capitalized on this rare market correction to get into a home that was once out of reach. Gary Serra & Associates clients John and Sandra had held off on getting into the market, but recently decided to list their condo in order to try and get into a detached home. They bought their condo in late 2014 for $380,800. With prices of condos holding, they were able sell last month for over their list of $509,900. The house they were looking at would have been worth $1.2M in July, but was now on the market for $1.08M, a savings of $120,000!
With their almost $130,000 in profit from the sale of their condo and the recent changes in the market they were able to leverage an extra QUARTER MILLION dollars in buying power.
For a complete look at the residential real estate market in Vancouver, click here for our market snapshot! If you have any questions about Vancouver Real Estate, our team at Gary Serra & Associates is ready and proud to be your first call. We’re honoured to be your preferred resource for navigating today’s market.
Gary Serra & Associates