With the year rolling out as a wild roller coaster, it has been a difficult year thus far to accurately predict “whats next?” Here in Kamloops, we have seen an increase in housing prices of 22% in 5 years with a large portion of that increase in 2017. When we first began off the year prior to any of the world economic shifts; the market was in favor to remain on par or continue with minimal increasing. Now that we are near the end of the fifth month and part way through the second quarter, economists are now releasing their initial data and opinions.
CMHC recently released their report noting:
Canada’s federal housing agency has warned that average house prices could fall by up to 18 per cent over the next 12 months – a dismal prediction that’s being challenged by RE/MAX based on market activity from coast to coast.- Remax.ca – PR & Content Manager | RE/MAX Canada
A 10-18% drop is a substantial nose dive which is extremely unlikely to ever occur here in our city. Housing prices are primarily dictated by supply and demand and according to what RE/MAX brokers are reporting at ground level, housing inventory is down in many markets, demand is still high, and multiple offers are a common scenario.
Kamloops for example for 2020: housing inventory is down 34% and house sales are down 22%. While both numbers are down from previous year, the inventory is down considerably more meaning there is less options for home purchasers. New listings that are coming on the market now that are highly desirable and priced correctly are continuing to receive full price or multiple offers.
Vancouver real estate is fluctuating from week to week, not just on seller side but also on agent side as well. People are re-emerging, with RE/MAX reporting lots of new inventory and many multiple offers, not just on $500,000 condos but those priced in the $2-3 million range as well. and. Perception is that now with easing of restrictions, people are more confident that things are moving in the right direction.
It’s possible to have high unemployment, yet a very strong real estate market. Unemployment appears to be having a greater impact on lower earners, and with the region’s high real estate prices, homebuyers are typically those in the higher income bracket.
Vancouver Realtors who were initially fearful are back in business, and an 18-per-cent decline in Vancouver housing values – or anything close to that – is highly unlikely. A five-per-cent price correction is more likely. – Remax.ca – PR & Content Manager | RE/MAX Canada
With the Province in the beginning stages of re-opening industry and service, Seller and Buyer confidence is returning to where it was at the very beginning of the year. Ultimately, that confidence in our local market, continually low interest rates and a typical seasonal shift we won’t see a major down turn in price. A reduction of housing prices of 5% at this point would only be considered a correction given the 22% rise over the past 5 years. Where I sit, maybe that would not be a bad thing.