Are Vancouver condo prices dropping?
Your answers to important questions: Are Vancouver condo prices falling? Will Vancouver condo prices drop? Should I buy a Vancouver condo or wait? Is there a price bubble in Vancouver condos?
Are Vancouver condo prices falling?
Fortunately for buyers today, condo prices are dropping. Unfortunately for people who bought in June 2018, the benchmark Metro Vancouver condo price has dropped $50,000 to around $650,000 today – a 7% drop.
Benchmark downtown condos have dropped $90,000 to $750,000 – an 11% fall
Will Vancouver condo prices drop?
According to most forecasts, Vancouver condo prices will continue to drop. Even though sales/purchases have picked up recently there is still a lot of supply and the condo markets are still close to a balanced market.
As well, buyers are mostly interested in the more modest condos and this implies that luxury condo prices will drop...and that will compress the prices of less luxurious condos.
The chart below represents the range of future condo prices and although there are some optimists out there, the consensus is that prices will continue to drop through next year.
Is there a bubble in Vancouver condo prices?
According to UBS, a Swiss investment bank, Vancouver and Toronto home prices are grossly overvalued when compared to the local economic fundamentals. They believe both Vancouver and Toronto are at a high risk of a bubble popping but they think Toronto is much riskier than Vancouver. In comparison, they think Chicago is undervalued.
Here is some additional reading for more in-depth analysis of these topics:
Metro Vancouver Real Estate Trends and Price Forecast
