Here’s a sentence you probably weren’t expecting to read in this lifetime: Metro Vancouver home sale prices are expected to drop next year.
No, that wasn’t a typo. For those dreaming of one day owning a home in Vancouver, that possibility has never been more obtainable. The B.C. Real Estate Association is predicting that average home sale prices will drop by 8.7 percent in Greater Vancouver and the rest of B.C. in 2017.
The bold prediction marks the first time in five years that the B.C. Real Estate Association has predicted a dip in year-over-year average home sale prices for Greater Vancouver. It is also 14.5 percent lower than the association’s previous forecast for 2017, published in late August, which predicted a 5.8 percent year-over-year increase in average home sale prices.
“We have to consider the source,” Andrey Pavlov, a professor of finance at the Simon Fraser University’s Beedie School of Business, told the Vancouver Sun. “This is basically an industry group, and they have incentives to paint the real estate market in the best terms possible. With this in mind, if they’re forecasting a decline, then in my view things are probably pretty bad.”
David Hutchinson, a realtor with Sutton, has been monitoring Vancouver market activity daily and has seen some “notable price corrections” as of late. Listings show a house in East Vancouver’s Collingwood neighbourhood that was recently originally listed for $1.6 million and re-listed last week for $999,000.
“It’s kind of a fickle market at the moment,” Hutchinson said. “The market is still up from 2015, it’s just not ridiculous anymore.”
It’s that ridiculous market that made it nearly impossible for potential home buyers with average incomes to purchase homes in the Greater Vancouver area. With competition from international buyers, these potential homebuyers were left in the dust as bidding wars that jacked the price up ensued.
But that’s not the way all real estate professionals see things, including Evan Siddall, CEO of the Canada Mortgage and Housing Corporation.
“While foreign investment clearly is a factor, it is not the only one,” Siddall told Global News.
He cited domestic residential investing, population and economic growth, Canada’s tax laws, and supply issues as factors driving Metro Vancouver’s overheated housing market, along with foreign investment.
Regardless of the driving force behind the B.C. Real Estate Association’s prediction, there seems to be a new opportunity opening for potential homebuyers and with that will come a flood of new people interested in buying homes in the Greater Vancouver area in 2017.
Victoria-based company Picture This Today will make it easier for real estate agents to meet these growing sales demands with RE3D, a virtual visualization software that allows potential clients to customize a prospective living space to their liking before ever entering the home.
And when they say “customize,” it’s more than just a buzz word. RE3D gives fully immersive and interactive virtual walk through of real listings that potential clients can furnish to their personal taste with an extensive online catalogue of product available for purchase.
Making home sales has never been easier with Picture This Today’s innovative RE3D software that will change clients’ perspective from a “well… I’m not sure” to “let me sign the dotted line.”