Vancouver Realtor, Patrick Weeks Take on the Vancouver Real Estate Market in July 2016
Even though the rain has come back, summer has officially arrived, and with that surprisingly we are seeing a slight cooling in our real estate market. That being said, in June we saw a heavy decrease in the sales to list price ratios dropping to 59% in June, the first drop we’ve seen in a couple years.
Real estate regulators, the government, media and general public would all like to see the slowdown of our market occur. However, little has actually been done with any effect in my opinion.
Here is a summary of what’s been happening in the real estate industry since the start of this year :
The real estate council will no longer be able to “self regulate” this will allow for stiffer penalties resulting from unscrupulous conduct of realtors from the real estate boards and council. A very welcome change that would uphold higher standards in the industry and promote integrity and fair practices.
Home inspections have dropped off dramatically. Many buyers have been tired of getting outbid after pre-offer inspecting the home only to get outbid by thousands to other more aggressive buyers willing to write subject free offers. My opinion is get the house inspected! $600 or $700 is a fraction of the cost of buying a home and is a necessity make sure you know what you are buying.
With the loss of affordability in the Lower Mainland, many home buyers are fleeing to Victoria, Kelowna and Alberta as they look for affordable family friendly communities to raise their families or get into the market.
The question becomes, is this a blip, a bubble, or a sign of a correction in the market to come? I would propose that only time will tell and if this trend continues for a couple months we will have more inventory and head back to a more balanced market.