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.
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).
Ever felt like telling the future?
What do you foresee happening to the local economy an housing market in 2019? Where will interest rates go?
The Bank of Canada seems to think we’re not in for hot growth and are keeping rates flat for the moment.
A couple of brokerages predict prices will stay flat or decline only slightly in 2019.
The general consensus and safe bet is to predict a status quo situation. No major drops or increases in the market. That sound about right?
That irrepressible news-bot southseacompany shared a whole bunch of stories about sales in Vancouver.
The summary? Prices continue to slide and sales have seen a huge drop of 42.5%.
A big thanks to SSC who continues to reliably share key news stories!
The bank that cried wolf: Housing market vulnerabilities are still high.
Vulnerabilities in the Canadian housing market are still high despite rising interest rates and tighter mortgage rules, Bank of Canada Senior Deputy Governor Carolyn Wilkins said on Thursday.
It also released results of a model it said showed Canadian banks’ capital positions would not be affected by a 20 percent correction in the housing market, with the biggest declines in Toronto and Vancouver.
Read the full article here.