HGTV shows talk about loving or leaving it. These shows are entertaining, but not reality when it comes to today’s building budgets and housing prices in Canada.
RBC Economics: 2022 Canada Real Estate Market Forecast:
“Plenty of unmet demand remains and will continue to fuel tremendous activity across the country. Still, we expect the Bank of Canada’s rate lift off to turn down the market’s heat in 2022 as deteriorating affordability sends buyers to the sidelines.”…..“Home prices will keep climbing, though at a slower pace. Most of that increase in supply and cooling off the market will take place in the second half of this year. “
British Columbia's Real Estate Association, Feb. 2, 2022, Chief Economist:
“The BC housing market is entering 2022 with the lowest level of active listings on record and significant demand-side momentum. That means strong sales should persist through the first few months of the year and supply will remain severely limited. As a result, continued upward pressure on home prices is expected in all markets.”
These two sources agree that the first part of the year will experience the same type of buying frenzy as last year until increased interest rates may slow things down.
CPABC March 9, 2022 Vancouver Island Housing Starts: “The largest increase was for attached units, such as condos, townhomes, and apartments.”
Much of the increase in new construction and home inventory that we see on Vancouver Island, is condominiums, not single family homes.
My opinion; should I sell my home now or wait for market changes? If you are Seller and particularly a down-sizer, now is a good time to sell your single family home. If you are planning on buying, moving to a larger home and can qualify for a new mortgage - buy now, as housing prices will continue to increase until at least 2023. Next year may have more favourable conditions to buy, but no one can really predict. If you are waiting to buy when housing prices decrease, you may be waiting for years or forever. There is no indication that prices will go down in the near future with low inventory on Vancouver Island, in general and also considering global migration. More people will move to Canada and BC. Hang onto real estate investments or buy into the real estate market.
If you would like more information, please contact Vida Glaser, an experienced REALTOR living in the Cowichan Valley, helping people buy and sell homes in Victoria and on Vancouver Island.