While the year may have started off a little slow, sales drastically picked up over the months and towards the end of the year, the residential housing market was left in a drastically different environment.  Changing market conditions are a key reason it’s important to keep in touch with your real estate professional and moving forward to 2018, we are looking forward to all of our clients being kept up to date with the current market trends.

The total sales in the Greater Vancouver area finished at a staggering 35,993 sales. That’s 10% over our 10 year average and the third highest amount of sales we’ve seen in the last decade.

Jill Oudil, President of the Real Estate Board of Greater Vancouver, reported that the strong demand was a factor of strong economic growth, increasing wages, declining unemployment, low interests rates, and a growing population.

While sales were up, 2017’s totals listings finished at a lacklustre 54,655. That’s down 4.4% from our 10 year average and the second lowest amount of homes listed in the last decade.

The market environment differed dramatically depending on the housing type. The condo and townhouse markets were very hot, with multiple offers raising prices of both housing types quickly. Detached homes found themselves in a much more balanced market, where buyers enjoyed having more choices and time to make their decisions.

All three housing types saw their average price increase. While condos lead the way with an increase of 26%, townhouses and detached homes increased at 18% and 8% respectively.

Entering into 2018, we have three key factors to consider which could all have effects on our local real estate market. Only time will tell if these key factors will have any long term impacts on the market.

First, we have a record amount of new strata homes being built, many of which will be added to the supply of available homes. This could potentially improve the current supply shortage.

Second, the Bank of Canada has been raising interest rates and some analysts are predicting further increases in the interest rates are still to come. This will hurt buyers purchasing power as mortgage loans will become more expensive.

Third, the new rules put in place by Canada’s federal financial regulator are going to make it more difficult for some buyers to get approved for a mortgage and for some homeowners to renew their existing mortgages. Borrower’s with a downpayment over 20% will now have to pass a stress test in order to get approved for their loans.

That’s all for our 2017 market recap, for further information or if you have any questions please contact us or leave a comment below!