As many industry professionals predicted last year, the residential housing market across Greater Vancouver has pretty much resumed its normal activity levels. And prices certainly have not collapsed in spite of predictions!
The dip in activity we saw starting last summer was the result of several coincident events:
- The natural slowing of an overheated market
- Tightening of mortgage rules
- Introduction of the foreign buyer’s tax
But even in combination these dynamics were not enough to overcome the fundamentals driving this market:
- An increasingly desirable place to live
- Continued low mortgage rates
- An attractive Canadian dollar value
- Steadily increasing population and in-migration
- Limited room for growth, especially for detached houses
- A strong economy and stable business environment
The law of supply-and-demand is at work here, helped by factors that make this an attractive place to live in a time of general prosperity. People here still see real estate as a good way to build equity, provide security and ensure rent-free living in their old age.
There will be ups and downs, but this market is here to stay. Call me when it’s time for a move or an investment.