There’s a 44% reduction in detached home sales in Vancouver. Is this becoming a trend?
You have probably seen headlines like “Big Slowdowns in Detached Housing Market Activity Across the Lower Mainland” or “What Sound Does the Real Estate Market Make When It Hits Bottom? THUD.” The month of March saw the fewest number of sales that we’ve seen in the detached housing market in quite some time. This isn’t just a small blip—it’s the lowest number of sales we’ve seen in the last 27 years.
Our sales ratio is right around 14% for detached homes. This puts us in buyer’s market territory. The reason for this slowdown can be linked to the global pullback of capital from overseas. Combine that with a 20% foreign buyers tax, a 5% property transfer tax, and an annual 2% property speculation tax, and you can see things are getting pricey for investors.
If you have a detached home in Vancouver, I’d be happy to give you an estimate of your home. Your equity may be eroding.
In contrast, the condo market is still hot. The sales ratio sits around 60%, with a 48% chance of multiple offers. I don’t see this trend slowing down anytime soon. We have a lot of local investors who have been profiting 20% to 25% per year.
If you already own a home, you can pull out as much as 65% of the home’s value to use on purchasing another property or use as extra spending cash.
Like all good things, programs like this are coming to an end. It’s a great program for everyone, even retirees. Ask me about it.
If you have any other questions for me or want to know more about the Vancouver real estate market, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.