The November Greater Vancouver sales figure is in and a somewhat positive headline read "Greater Vancouver Real Estate Prices Stop Falling, As Sales Jump". Read the full article here.
Based on the past seasonal pattern for active listings, we are likely to see a surge in new listings from January 2020 through May to August 2020. The unkown is in buyer interest and home sales for 2020 from January onwards. A likely outcome is moderate home sales as witnessed for 2019. The incentive for buyers to get back into the market in large number is lacking as home prices are still considered too high and not affordable to most home buyers.
At current price levels for all housing types, new condo and townhouses prices in Greater Vancouver selling at $500 to over $800 per sq ft translate into a new townhouse for a young family spending over $675,000 for a 1,350 sq ft home in the suburds of Port Moody and Langley. Closer to the Vancouver in cities like Burnaby and Richmond, such townhosues are priced over $850,000.
What will Be The General Economy For The Market?
The easing of interest rates the past 3 months help to booster some confidence in the housing market. But, the world economy and the uncertainties caused by the China and US trade war, and the current strained relationship between Canada and China and capital control by China are not helping the Greater Vancouver housing market.
Presale condo developments have slowed down significantly due to slower sales and many new projects were on hold and deferred from going foward with their sales launches. The impact of new condos completing where buyers are required to take possession is yet to be fully assessed.
Will more new condos buyers who are taking possession of their condos rent out their units, or choose to sell them in the open market? The full impact of these new condos are yet to be played out. We should be able to know the new listings coming into the market from January 2020 onwards.
If you are planning to buy or sell your home, you are welcome to contact us for a discussion. Whether you should be buying or selling? Or, whether to wait to find out how the market will turn out this comoing spring 2020.