Sales slow down across BC
The BC real estate market has continued its slowdown in sales for the months of July and August and the B.C. Real Estate Association (BCREA) is predicting a 21 percent drop in sales for 2018. The biggest factor , agreed by many experts in the industry is attributed to the tougher mortgage qualification rules introduced in January by the federal government. In simple terms the new rules reduce the maximum amount of a mortgage consumers can qualify for by approximately twenty percent when they have a twenty percent down payment. Other factors like the Foreign Buyer Tax have also had some impact. This slowdown has also started to impact prices and many people are in a wait and see mode to see how much prices may continue to drop.
On the other hand the BC economy is doing well, unemployment is low and wages are rising. These factors all point to a healthy real estate market in the longer term. If you are a potential buyer there are many factors to consider in our present market and the philosophy of many successful investors is not to try and buy right at the bottom of a price cycle or sell right at the top because you will often times find yourself on the other side of the slope. Another factor is the quality of the inventory. When properties are sold well below market price in any market it can be for reasons that will adversely affect the long term investment potential of a home.
There are so many considerations that should go into any real estate transaction and I am happy to share my wealth of experience with you and answer any questions you may have.