The first quarter of 2016 was a banner year for Metro Vancouver’s real estate market. Following the record highs of this past Spring, the market has been moving towards more normal activity. It is great to see a return to a healthier housing market for homebuyers. 

Market Snapshot and 2017 Condo Trends

Since August, the government has announced new housing policies to help cool down the market including the 15 percent foreign buyers tax, mortgage stress test and vacant home tax. Prior to the new policies, the multi-million-dollar single family home market was starting to slow down and will continue to experience slower sales rates and likely downward price pressure on higher end homes in the new year.  

New pre-sale developments remain active particularly in condos and townhomes with close to 70 per cent sold since August. For 2017, in the presale market, we will see a trend towards transit-oriented communities which have been undergoing major revitalization. Keep neighbourhoods and new town centres such as Metrotown, Edmonds, Brentwood, Cambie Corridor, and Coquitlam on your radar. These vibrant urban hubs will see upgrades from parks and recreation, retail and dining to infrastructure enhancements. 

Even if you aren’t in the market for a new home, a visit to a pre-sale Presentation Centre can be a great way to learn more about the exciting changes coming to an area. You may be pleasantly surprised to find new public amenities and upcoming transformations that will benefit the local community.

July to October 2016: The Greater Vancouver sales-to-listing ratio has declined since the foreign buyers tax was implemented on August 2, 2016. However, the three-month trend would indicate a levelling off versus a continued steep decline. The market is still active overall — particularly in apartments and townhomes.

The Road to New Year’s Resolutions

As you start to think about New Year’s Resolutions, consider putting home ownership in 2017 at the top of your list. A successful home purchase, like any other significant life event requires future planning whether you are a first time home buyer, starting a new family or seeking to downsize or upgrade. 

Where do I start?

Planning for ownership can be overwhelming but it doesn't have to be. First, define your end goals. Whether you want to eventually move into a family sized home, be mortgage free within 15 years or create income, understand what your goals are. With goals in mind, industry specialists such as your realtor, sales representative and financial advisor can analyze your personal situation and help you develop a plan.

During the planning process factor in your finances, lifestyle and career path. Determine the details of your budget for the down payment, fees, taxes and monthly payments such as strata costs to help you make a good financial decision. Research the neighbourhood that best suits your lifestyle. If necessary, make changes to account for this investment so you are still living within your means and don’t over extend your commitments. A career assessment may be helpful to see how it aligns with your condo completion date. A promotion or bonus can contribute to your savings plan, but be conservative in your estimate. 

Identify Top Priorities

What’s important to you? Write down your wish list for what you're looking for and then identify your top three priorities. As you search, you can refer back to this list to help you make a decision and ensure you select what makes the most sense for your lifestyle. A checklist can include items such as budget, specific features such as in-suite laundry or large outdoor space, building and community amenities, areas of high rental demand or commuting time to work. Other priorities can be seeking an up-and-coming neighbourhood for a starter home or looking at the long-term investment and income opportunity. Understand your wants and needs for your property and know what items are non-negotiable to help you narrow it down and keep you within budget.

Enlist Help, Start Looking, Make it Happen

Once you know what you're looking for and understand all of the costs associated enlist some help to follow through with your plan.  A few suggestions include:

• Register for pre-sale communities in areas that interest you. 
• Find a realtor you feel comfortable with to help you find the right property and navigate the real estate transaction.  
• Start building relationships with a bank or mortgage broker. If buying presale, you may be able to get preapproved and secure an interest rate early.
• Identify a lawyer or notary to help finalize the transaction.
• Ask the sales representative at the presentation centre for the floor plan and begin planning your space. 
• Begin planning your move and/or post completion activities. There are many online checklists which can help run through everything you will need to do. 

This will be one of the biggest investments in your life, it is important to manage your expectations. In the short-run you may need to make compromises to your monthly budget, savings strategy and/or lifestyle adjustments.  In the long-term, although there may be detours or speedbumps, realize your strategy can change with you and still lead you to the end goal. With a normalizing market, now is a great time to consider a new purchase.