The state of the market has changed a lot since our last forecast in March. Here’s an updated review of what the leading BC house price forecasts to the end of 2019.
All tagged Vancouver Real Estate
Key factors at play in the Vancouver housing market
An examination of the factors at play in the Vancouver Real Estate market reveals a definitive strengthening in the factors influencing the market downward.
Prices could continue to rise but the risk of a correction has risen significantly. There is still a critical supply issue so, regardless of home prices, many more homes need to be built in Vancouver.
Updated B.C. Home Price Forecasts
Royal Bank and the Canadian Real Estate Association (CREA) have issued house price predictions conflict with each other. CREA anticipates 2018 will see a bigger drop than they had predicted in their December 2017 forecast, while RBC raised its forecast by 0.5% for 2018 but expects the tide will turn in 2019.
How much fuel is left in the real estate rocket?
Canadian condos have shown tremendous price growth since 2016 but it is uncertain how much price growth potential remains in condos. Some major Canadian banks have forecast the real estate market in Vancouver and Toronto will hit a tipping point by the end of 2019. As the impact of interest rate increases, government regulation, and taxes work their way through the market toward the middle of 2018 the accuracy of these forecasts will be revealed.
Real estate is a low risk, high return investment. Not.
There is no such thing as a low risk investment with consistently high returns. If there were such an investment, then everyone would buy, pushing up prices until the investment returns were equivalent to other low risk investments. This may have already happened in Canada, but perhaps real estate is different.