Vancouver Prices Will Keep Rising Despite Misleading Report
So a recent article which was just published by the CMHC (The Canada Mortgage and Housing Corporation) stated that the Vancouver prices are set to Cool. Then various news channels echoed that same message, with headlines like “Canada’s real estate boom will come to an end in 2016.”
This instantly piqued my interest so I delved into it a little further. Now it should be stated that nobody can truly predict real estate prices, not myself, not you, not even the CMHC despite what they may think.
So as I’m reading these headlines, i’m thinking, wow they’re saying the boom is coming to an end. The day of reckoning is here. The madness is over.
Brace yourself. It’s not. Vancouver house prices are actually set to rise in 2016 & 2017.
I’m here to set the record straight. The articles headlines are very misleading and many people will simply just read the headlines and move on.
What the article actually states is that prices will continue to rise. The CMHC Report says that home prices are projected to “rise 3% next year. By 2017, that growth is expected to dip to 2.1%.” Although that’s still an overall increase of 5.1% over the next 2 years.
It’s very important to read between the lines. This is not really a cool down, or a dip. It’s a continued upward trend. What the report is actually saying is that prices are going to continue to rise but at a much slower rate than what we are currently experiencing.
It will still very much be an active and hot market in the next two years. Prices will continue to rise, and the number of total sales will only decrease slightly. This means it will continue to be a strong sellers market.
Overall I believe CMHC is fairly accurate in their report. However stating that boom is coming to an end is a little misleading. Prices are and will continue to rise into 2017. Currently we have too little inventory and too many buyers which will cause that to overflow into next year and 2017. For buyers this means it won’t get much easier or any cheaper, for sellers if you’re looking to hold on just a little while longer it appears even more profit can be squeezed out.