The Sky Is Not Falling
As anticipated, mid island real estate is shifting into a balanced market. Niche properties, such as single family homes under $600K, are seeing increased pricing & holding strong, some even with multiple offers – this compressed market has remained competitive for the many Buyers still entering or re-entering the market.
Many Sellers are having to lower their expectations from past years. A sharp price & well maintained home will set it apart, especially in higher end properties which was hit harder by the 20% foreign Buyer tax as many foreigners elect to invest elsewhere – less Buyers with big payouts are flowing from the mainland & Victoria to fuel our high-end housing market.
New construction is taking longer to move due to affordability. Most Builders are not showing much give on pricing – profit margins have to make sense to continue building. Expect a slowdown in the new construction starts in the coming year as Builders combat increased lot prices (19% gain this year over last!), increased cost of construction materials plus building code changes.
The biggest market impact? Reduced qualification for Buyer mortgages = less sales in general. Prices are expected to increase 2.1% in BC for 2019. Expect 2019 to be our market high for most homes over the next 5-8 years. It's a great time to buy as negotiation is more prominent & there is an increase of selection to choose from. In a balanced market Seller's benefit if moving to another home within the same market as "subject to sale of my house" clauses are more likely to be accepted which help alleviate the 'where am I going to go' stress.
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