[:en]If you’re planning on getting your BC real estate license, getting a grasp on the recent trends is essential for you to predict what is to come. One thing that you should definitely be familiar with is the current surge in real estate pricing that is occurring in Vancouver. For those who are not, our experts at Benson Wang have outlined the issue in our article below.
Price Surging
Although home prices in Vancouver have been high for some time, the surge reached astronomical levels in both Toronto and Vancouver last month, so much so that one of Canada’s major banks, Toronto-Dominion (TD) Bank, expressed concerns that these two cities may by at risk of home price correction. These increases are likely the root of the rise in January home sales by eight percent compared to last year, with the national average home price rising by 17 percent.
Statistics
In terms of the statistics for each city, the average sale price in the greater Vancouver area rose by 32.3 percent year-over-year to almost $1.1 million, whereas in the greater Toronto area it rose 14.2 percent to $631,092. These figures have gained attention from economists, with some pointing to these increases being bolstered by new buyers attempting to get into the market before the new federal regulations that were enacted on Monday; with these regulations in place, homes that cost between $500,000 and $1 million will require larger down payments.
Sustainability
Although these statistics represent strength for Toronto and Vancouver real estate markets, the concern is over whether this strength will last into the future. Foreign investment and immigration will likely provide support to these markets in the coming months, but whether these high home prices will be sustainable is yet to be seen.
“While we continue to believe that things just can’t any hotter, markets in B.C. and Ontario continue to prove us wrong,” said Diana Petramala, an economist at TD Bank. “Every month of double-digit home price growth raises the risk of a deeper home price correction down the road.”
Future Decline
With the aforementioned mortgage regulations now in effect, many potential homebuyers may decide to back down, which will likely lead to a decrease in sales in both the Toronto and Vancouver areas, as well as a decrease in national sales.
With the constantly shifting nature of the real estate market, keeping in touch with the latest trends is essential, especially if you’re in the process of getting your BC real estate license. As a beginner in the field, gasping these patterns is very important for your success. For more information or further questions, give us a call at (778) 686-8555 and we’ll be happy to assist you.[:]
