Vancouver BC housing market is cooling down

[Pawan J.]

Hi everyone,

We are seeing price reductions on active listings, active listings are being pulled off (likely to be re-listed in the spring) and many homes are staying on the market longer and not selling at the first open. The British Columbia Lower Mainland market is normalizing it seems...

This is the case in Vancouver to Surrey as far as I can tell with the other Tri-cities likely to see the slow down soon. However there are always hot areas and in demand that will always have a quick turn around once listed.

Like any rise in prices the market can only take so much for so long and we have reached the peak and the normalization is here. Price reductions can be seen but don't be fooled by thinking that prices are going to drop or the bubble is going to burst just yet. The list prices you have seen in the last couple of months is the tail end of the peak where likely greed has set in and folks list their homes for the maximum price thinking "someone will pay it" and realtors could be telling clients to list high as they will get max price. If you recall during the price rise homes were being listed low and getting well above asking. This strategy change to list high and see how much people will pay. Some caught the bus and sold high, but many sellers have now missed the bus and may have to catch the next one or take an alternate route (lower selling price).

However if your a buyer (depending on your purpose of purchasing) in the next month is likely a great time to buy and possibly get a deal so look out for them.

I also know that banks are tightening their lending re. their property portfolios and some are tapped out all together from the recent absorption of property here. This will make it harder for some to buy or even more expensive if using B Lenders. 

Also with all the recent equity gains you might see prices on holiday homes rise or even condo markets in some areas as people use their equity. Likely also a lot of new cars and boats being bought by the non real estate savvy folks out there :0)

What are you seeing in your area in BC?

Is the GTA and Toronto, Ontario seeing the same?