So everyone is waiting and hoping for some news on what is happening in Vancouver Real Estate. The latest outlook is Vancouver Real Estate might not crash. It seems like there be an ever growing underlying demand for housing. Condos seem to be especially in demand. Stress tests and taxes are hitting the higher end buyers and forcing them to lower their expectations.
This has the effect of putting hundreds of buyers into a lower end of the Real Estate market. Save the people and get a reign on housing was the new governments agenda. Also their promise to build tons of affordable housing for the poor. Today was quite hilarious when I saw a new rental property coming online. There one bedrooms were close to 1800 a month. Not too bad for this town but still up there.
Why no Crash
One reason the experts are not predicting a crash is there is still a shortage of supply. The population is still growing at a fast clip and they need housing. There is a shortage of land in the lower mainland to build on. Obviously this will limit supply. So the economy is also on steroids. Also causing more workers to look for housing.
It seems that the governments efforts have only caused lower end housing to be in limited supply. What has happened is the lower end condos have risen in value. One bedrooms going for 4 to 5 hundred thousand. As soon as one of these units drops it is snapped up. Expect a slow fizzing market for a year or two and then back to rising prices.
Doom Sayers are wrong
All the doom sayers are going to be wrong. You can rule out housing dropping by half. Unless of course an outright depression hits but this seems pretty unlikely. In the meantime in Vancouver’s metropolitan area there is an outgoing crisis for people trying to find housing that they can afford.
Doom Sayers might be right when they say that there will be more people living on the street. As pricing for rentals and also Condos rise more people are getting closer and closer to the edge. I don’t see wages rising in any dramatic fashion to equate for the rises, do you?
Housing won’t crash
There is only one thing I see crashing and that might be my front door after I can’t afford my payments. A couple more rate hikes just might do it. As long as their are people lined up down the block with money to get into the low end there won’t be a crash.
Now the high end could be a whole different ball game. This is the area of speculation and risk not necessity to buy a home. The mega houses and luxury units could take a beating. Hey have you heard it’s all drug money and foreign speculation so who cares. People that have been in lower end units for years will now be able to sell and get into those high end pads.
So what should a buyer do
It might be a good idea to sit back and take a breather. Got a little cash for a down payment tucked away. This year of 2019 just might be the perfect time to get your ass off the landlords couch and into your very own place. All yours and don’t worry, in the long run it will pay off for you younger folk. The older folk that never bought something in their life could be in trouble. Especially if you got a crappy pension.
Could you imagine living in the town of Vancouver or Toronto for that matter on 600 a month and whatever your cpp might be. Not all Canadians were brilliant enough to plan ahead for this housing nightmare. Now you have an immigration explosion around the world all headed this way. Yikes.