Friday Free-for-all! January 11th 2019

New Year, New Friday!

It’s the end of the week and that means it’s time for another Friday free-for-all, our open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

City of Vancouver house prices drop 10%
Housing headed for a crash?
Canadian market imploding
Two years of gains wiped out
Interest rates rise

So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!

Vancouver Sales hit 18 Year low

If you were hoping 2019 would kick off with a booming real estate market… well, it’s not going so well.

“After three or four years of a very robust market and escalating prices, this certainly seemed to be a year of transition. We went from more of a sellers’ market, to a balanced market, and now — a buyers’ market.”

The drop in benchmark price for a detached home accompanied a drastic slump in sales, year-over-year.

The total number of homes sold across Metro Vancouver in 2018 dropped 31.6 percent from 2017, with 24,619 transactions.

That’s the lowest number recorded in the region since 2000, and 25 percent below its 10-year average.

Read the full article here.

Happy New Year! The Real Estate Market in 2019

It’s the beginning of a whole new year and that means it’s time for expert predictions about the Real Estate market in 2019:

From the Professor:

“My guess is 2019 will not be a banner year for sales in Greater Vancouver and I expect further price declines,” said Tom Davidoff, an associate professor at UBC’s Sauder School of Business.

From the Accountant:

Historically, the real estate industry has been a “laggard” when it comes to embracing technology, says Frank Magliocco, a partner at PwC Canada who specializes in the housing market.

“But I think what you’re going to see now is a fairly significant ramp up in embracing that technology once it becomes more mainstream,” he said.

“It’ll be increasingly important to remain and be competitive in the marketplace. Once you see these technologies prove out, you’ll see more and more adoption.”

On Quantative Tightening:

When it comes to reversing their crisis-era bond buying, central bankers are focused on the destination. Traders in risk assets care more about what could be a painful journey.

The tension may prove even more consequential in 2019 now that the European Central Bank is stopping — though not yet unwinding — asset purchases. Bank of America Corp. analysts say liquidity from the developed world’s four major central banks will contract by $200 billion next year, driving volatility in the riskier markets that thrived under quantitative easing.

From the Real Estate Salespeople:

Even though British Columbia is expected to lead the country’s year-over-year decline in home sales in 2019, the provincial average resale price will rise slightly, according to a national real estate forecast published December 17.

The average sale price of a B.C. home sold on the Multiple Listing Service next year will be $720,000 – a rise of 0.9 per cent over 2018’s figure, predicted the Canadian Real Estate Association (CREA).