THE HARD-TO-MISS REAL ESTATE HEADLINES…
“2016 will be another strong year for real estate market” ~ Barbara Yaffe, Vancouver Sun
“53 neighbourhoods join Metro Vancouver’s million dollar club” ~ Joanne Lee-Young, Vancouver Sun
“Vancouver, Toronto real estate markets end year on sky-high note… Sales in both cities set records as prices continue to surge” ~ CBC News
“Metro Vancouver housing market sets new sales record in 2015 as prices keep climbing” ~ Garry Marr, Financial Post
“Vancouver Homes Sales in 2015 Break Records, Rise 28%” ~ REBGV
“Highest total of residential property sales for one year on record, says board, and benchmark prices up 33.6 per cent year over year” ~Joannah Connolly, REW.ca
WHAT WE KNOW FOR SURE
2015 was a record breaking year! Sales for residential real estate in Vancouver rose 28%. The Zwick Chimes Real Estate Group results were no exception to the record-breaking trend. In 2015, our team sales totaled 210 compared to 142 in 2014, representing a 48% increase.
Month after month, the 2015 headlines pointed to strong competition due to low inventory resulting in upward price pressure, making Vancouver a “seller’s market.”
WHAT WE DON’T KNOW
How long can and will this trend continue?
What factors both locally and globally will affect change?
No doubt you have come across scores of articles speculating what will transpire for 2016 in the Vancouver Real Estate Market. The bottom line; nobody knows for sure! Here are some thoughts from the Zwick Chimes Real Estate Group.
CHINESE MARKET SLUMP
We are hearing both arguments about what the slump in the Chinese market is going to mean to us in Vancouver. On the one hand, some of our developers are concerned. However, our Chinese clients speculate that it’s going to drive more money to safer markets… They certainly love Canada and Vancouver in particular.
That said, Currency markets must be heavily factored in. For months our CDN dollar has been hammered, falling below 70 cents last week for the first time in 13 years. Therefore, for the foreign market, local Real Estate pricing remains somewhat unchanged over last year. One would think that more foreigners would be flocking to US real estate. However, their market too has been on the rise and is now 30% more expensive than Canadian real estate, year over year.
It still takes a long time to get permits and approvals from the city, which postpones everything from reno’s to new builds of homes, townhouses, and condos. It’s too early to tell if inventory will increase (or worse, decrease) over last year but we are deeply hoping for an increase… a more balanced market is definitely in order!
AND BANK OF CANADA?
Speculation on rate change intensified last week with the weakening of both the CDN dollar and crude oil prices. We await the BOC’s revelation this week… many analysts are saying “a case exists for a rate cut on January 20th.”
Our best guess is that the first 6 months of this year will be very similar to the past 6 months, but beyond that nobody knows… NOBODY! Given that 2015 home sales were the highest (annual total) in REBGV history… Fasten your seatbelts!