As you know, the Government has implemented the Foreign Buyer Tax and recently introduced the tightening of insured mortgage qualifications.

The direct effect of these actions slows the foreign buyer activity and the number of low down payment purchasers in the market. The broader effect is to introduce uncertainty to the market which will move some active buyers to the sidelines for a period of time.

The fact is that these market conditions create a buying opportunity rarely seen in Vancouver, where we’ve been experiencing a Seller’s market over the last couple of years. The detached housing market has been experiencing a slow-down since June, and the hot condo market may undergo a shift from a Seller’s market towards Balanced due to the mortgage insurance changes.

Buyers will have more choice and less competition.

Sellers will now be able to more easily move as they will be purchasing in a more normalized market.  Since condos and townhouses are still experiencing a seller's market in many areas, owners of this type of property will sell for top dollar, but save money if upsizing to a house (or any other property type which is now experiencing a buyer's market).

Some people expect the market to crash but history shows that mortgage and tax changes only effect the market for 3-6 months, and then we once again experience typical market conditions (i.e. Balanced or Seller's market). The main effect on the market is supply and demand.

Since these fundamentals have not changed, in our opinion, the Fall of 2016 will experience a flattening of pricing for condos and possibly a 10-20% drop in pricing for detached housing from the market peak (especially in the mid to higher end priced houses). We're also expecting a robust market in the Spring of 2017 because buyers tend to return from the sidelines after price adjustments.

Give us a call or just reply to this email if you have any questions about the changing market conditions.

You can also search all homes for sale on our website, or if you’re thinking of selling your home, you can enter your property address here to find out what it’s worth based on recent home sale prices.