Silver Lining in Cooled Down Housing Market in Vancouver:
The Sales activity over the past few months has slowed across Metro Vancouver.
One survey was conducted by REBGV related to this, according to that statistical data, Metro Vancouver surged at 1,887 in July 2022 – approx 40% decrease year-over-year & approximately 22.80% dip compared to the previous month.
As sales activity is slowed, prices have also fallen. By comparing the data of July 2022 with July 2021, we can conclude that on average, there is about a 10% decrease in the average prices of all property types.
After 2.5 years of unusual growth, this cooling housing market is the result of the following factors:-
- High Inflation
- General uncertainty in the stock market
- Rise in the interest rates
Back in 2008, during the height of the Global Financial Crisis, prices dropped by almost 20%. And even in the past, Vancouver’s housing market was quick to bounce back.
According to O’Toole, The biggest market cool-down may already be behind us, since current sales activity is below the 10-year average sales activity.
Since people are increasingly making plans for the future, activity has already started to pick up over the past few weeks. Only time will tell us how the next few months will come out, & where will the market be by the end of this year.
