Contrary to popular belief, Vancouver’s housing market is still doing well. Properties are being sold quickly and at high prices.
However, many homebuyers have an inaccurate perception that property prices will continue to fall, which is causing concern among Realtors who are attempting to guide their clients toward making realistic offers. Some buyers are even offering 25% off the listing price in the hope of securing a bargain, which isn’t supported by the data.
While the median house price in Metro Vancouver has declined by 10 per cent, falling from $1.98m in January 2022 to $1.8m in January 2023, the drop in the condo market has been only 3 per cent, with prices decreasing from $1.05m to $1.02m over the same period. Clearly, the savings are not as significant as some people believe.
Unfortunately, many social media creators, particularly those on TikTok, tend to exaggerate bad news, disseminate false data, and sensationalize unusual circumstances that distort the broader market trends. However, by examining data from the Vancouver Real Estate Board, we can reveal the truth about the current state of the market.
Higher interest rates have slowed the property market
The Vancouver housing market has been impacted by the rise in inflation. Many people believed that inflation was only temporary and that things would return to normal once supply chains were restored after the Ukraine war ended. Stricter mortgage lending rules, higher interest rates, and a cooling of buyer sentiment have all contributed to the decline in property prices.
The good news is that the bottom of the Vancouver housing market is likely already behind us. As soon as we are certain that the rate hikes are over, buyers will return, and prices will start to rise once again. Vancouver continues to attract people from all