(December 06, 2017
, posted in Market statistics)
I was going through the latest housing statistics and thought I would share with you.
It looks like we may have reached the top of the price curve for Detached homes in the GVRD. There has been more of a build up of inventory over the last few months in the outlying areas and we are seeing price reductions in these areas.
Detached homes are being listed for sale for longer before attracting offers and pricing is becoming more key as the pricing curve has flattened out. The condo and townhome market is more active than the detached due to affordability. The prices in this segment are still on the rise, but here too, it is showing signs of slowing somewhat. Of course, this may all change when the new stress test rules on mortgage qualification come into play next month.
Vancouver is greatly influenced by immigration which may soften the blow for our area. A report from Toronto-Dominion Bank said the stress test will likely further slow housing activity, depressing demand by five per cent to 10 per cent once implemented on Jan. 1, 2018. The chief economist for the Canadian Real Estate Association said he would be surprised if 2018 is not materially lowered.
My prediction is that the detached sector will see a downward pressure on prices in 2018 while the attached sector will see a bit of a price levelling. There will be a demand shift from detached homes to condos and townhomes due to qualification requirements. The higher end detached market will see the most impact.
As this plays out, we may see more foreclosures on the market as people are no longer able to sell on their own to save themselves.
Click here to see the Market stats
from the Real Estate Board.