As market conditions in Vancouver are fluctuating every day, buyers are increasingly concerned. The Real Estate Board of Great Vancouver says that this April in 2018 saw a 17-year low for the month in buying trends. They said that homes and condominiums sold in Metro Vancouver registered a decline in value. Many more properties were newly listed giving buyers more options. Property prices continue to move up by 14.3 percent from April 2017 but are down by 0.2% from March 2018.
Vancity Housing Market Trends:
- Detached Homes More Expensive: The smallest gains were in the detached houses category. Apartments and townhouses rose in value. Lower priced properties registered an upward swing in prices so they have become more unaffordable for those with average incomes.
- Overvaluation: Prices continue to rise for homes in the $1 million+ bracket. This means rising mortgage rates and unaffordability in that segment too. Overvaluation is the greater concern for all.
- More Demand than Supply: The demand for homes is greater than supply. There are more and more homes being built but with increasing unaffordability, there’s a risk of properties remaining unsold.
- Townhouses and Condos Affordable: However, Metro Vancouver offers better news. The risk here is overbuilding. There’s a record-breaking number of new home constructions over the past couple of years. Developers have not been able to keep up with the demand. Townhouses and Condos remain within affordable range hence the demand for these constructions continue to rise, compared to single-detached homes.
Should You Buy a Condo or Home in Vancity?
Despite the trends, realtors say it is better to buy a home in Vancouver. Whether it is a detached home or condo depends on your budget and lifestyle. Condos and houses come with different advantages and disadvantages. You need to know what fits best for you.
- Condo Convenience: You can consider a condo if you prefer certain conveniences such as a location close to your workplace or entertainment areas. If you do not want maintenance hassles and sharing common areas, a condo is for you. Earlier, condo buyers were usually young, single or newly married first homeowners. The condo was a stepping stone towards a bigger property eventually. But today, more empty nesters and older couples are downsizing from the spacious vacant homes to move into convenient condos.
- House Lovers: House buyers seek more space and privacy. They like the freedom to personalize their home, spend time and efforts on upgrading themselves, suited to their taste. They do not like to feel restrained by condo rules and regulations. They like to tend to a garden, have a kitchen backyard and are willing to commute longer for work.
- Finances: Condo costs can vary greatly. However, condo prices still tend to be lower than houses. But prices are fast escalating with demand for condos rising by the day. Monthly maintenance fees in a condo are easier to budget.
- New Mortgage Rules: Canada has new requirements for minimum qualifying rate for uninsured mortgages, making purchasing more difficult. A study found that the millennials purchasing power in Canada has greatly reduced after the new set of mortgage rules. This also leaves lesser money for general expenses. Make sure you find a good lender and mortgage expert to talk about fixed rate mortgage.
Lending Experts – Mortgage Broker Vancouver
At Lending Experts, our team is highly qualified and experienced to make mortgages simpler and easier for you. Our mortgage brokers are highly skilled senior experts, held in high regard. We are committed to delivering excellent services that will smoothen out the rough path of owning a home or condo in Vancouver. Call us to discuss further.