2016 was quite a year!  Lots of government intervention, and a market like no other.

Real Estate Highlights

The Spring market was highlighted by a restriction on the assignment of contracts for resale properties, followed by a mandatory downpayment increase for properties over $500k, and the introduction of a 15% Foreign Buyers Tax in August. Federal mortgage rule changes in October created a stress test for buyers with less than 20% down payments. In the Fall, the City of Vancouver introduced the Empty Home Tax (for investors). In December, the BC government announced a 5% first-time buyer down payment loan which is set to start in January 2017.

Outside our borders, factors such as Trump, Brexit, a declining Canadian Dollar, poor living conditions in China (i.e. air pollution) and a continued movement of global capital and immigration also affected demand in Vancouver.

Market Overview

The Vancouver market experienced a record breaking first half and then a shift in the complete opposite direction for the last half. In Greater Vancouver there were 26,439 properties sold in the first six months and 14,441 sales in the last six months of 2016. In the Fraser Valley the story was similar, with 14,732 properties sold in the first six months and 8,160 in the last six months.

What remained constant, was the lack of homes for sale in the market. And that culminated with an exclamation point in December with only 1,350 properties listed in Greater Vancouver in December – 35 percent below December of last year and 22 percent below the lowest amount of new listings in the month of December going back to 1991. So while demand declined through the last half of the year, an accumulation of inventory did not happen. The Home Price Index showed that prices across the region declined in the last 3 to 6 months of the year.

How Does this Affect You?

Given that 2016 finished with a declining demand and no rise in supply, its likely supply will be restricted through 2017. More than anything, supply and demand will direct pricing in the market. It’s currently a buyer’s market for detached properties, which will continue until demand increases. However, strata properties (condos and townhouses) are expected to be in a seller’s market until the Summer. It's the perfect time to upsize, sell a strata property, or take advantage of the discounts on detached houses.

Please let us know if you have any questions, want to know the value of your property, or search all homes for sale on our website.