Is it a buyer’s or seller’s market? What is the state of the housing market?
In the minds of many first-time home buyers, downsizers, and investors these questions can be challenging to answer when deciding to enter the housing market. 2014 delivered a stable year for activity with high participation in terms of number of homes traded in the Greater Vancouver Area. Looking ahead, many experts speculate Greater Vancouver’s market place to be one of Canada’s “best bets” in 2015, in terms of investment, development, and housing. For those that are not housing experts, it can be useful to understand some essential high-level indicators (BC economic trends, interest rates, demographic trends, supply and demand) that play an important role in forecasting market conditions. Below are some of the key indicators on why many experts are speculating that the Metro Vancouver housing market will remain healthy and balanced in the upcoming year.
BC Economic Trends:
With the value of the Canadian dollar decreasing and improvements in the U.S. economy, British Columbia expects positive economic growth as a result of export-related industries benefiting from increased business activity.
Interest Rates:
Historically low interest rates will help many first-time home purchasers and investors take part in the housing market as mortgage affordability is expected to stay low and stable through 2015.
Demographic and Population Trends:
Recent economic slowdowns in Alberta and other international markets will continue to drive inter-provincial and international migration into Canada and BC. A healthy number of new residents are expected to help population growth from 2015 – 2020 and these people need a place to live. With the re-opening of immigration applications and opportunities for foreign investment and home ownership, Vancouver continues to be one of the most culturally diverse and desired destinations to live and work, especially for the younger demographic that is essential for new household formations.
Supply and Demand:
With a consistent balance of population growth, local economic stability, and steady housing supply, Vancouver is expected to remain stable with modest price increases this year. 2014 wrapped up with very stable conditions and increased home prices in many areas. The region’s home sale and listing totals ranked fifth when compared against the past 10 years of activity.
Vancouver continues to be viewed as a world-class destination for homeowners and investors to stake a claim. As long as this is true, it will continuously pull higher demands both from the local and international market, making it even more important to understand significant housing indicators that will help shape your investment decision in the future.
