The end of 2016 arrived with much lower sales volumes (especially in single family detached homes) than the year started with, and, as mentioned above, quite a bit of uncertainty moving forward.
In spite of the lower sales – some of which is seasonal – prices have not dropped significantly, nor are listings building up. It seems like all the players are waiting to see what happens.
Most of the experts are predicting the number of homes sold will continue at or above the 10-year average (but lower than the last couple of years), while prices remain steady or soften slightly. North Van Benchmark Prices for detached houses are down about 5% from 6 months ago, but our apartments are up 2% over the same time.
Your Governments at Work
Various levels of government had their oar in the water on the high profile real estate file in 2016 (with some results already in place and some coming in early 2017). Here are a few of the things we can thank them for:
- Luxury home tax on sales over $2 million
- 15% Foreign Buyer Tax
- “Stress Test” for mortgages with less than 20% down
- Empty Homes Tax (Vancouver city)
- Interest-free down payment matching loans for first-time buyers
For details on any of these programs, give me a call anytime.
Greater Vancouver Home Sales Trends 2013 – 2016 (units)
The housing market has regular cycles apparent in each calendar year.
But in 2016, the activity peak was much higher than usual and a bit earlier in the year, followed by a sharper and much deeper reduction towards the end of the year.
Source: Real Estate Board of Greater Vancouver