Although the news article is updated to Feb-24-2020, the data used seems to be mostly from 2019. I'm curious how things will be now and for the spring. Markets appear to be up in Toronto and Vancouver. Trudeau's new help to new buyers may be a small factor, while providing no new incentives for increasing the supply side of the equation. The federal Liberals (and NDP) may work together to provide even more incentives to buyers to increase their buying power.choclover wrote: ↑ Is this a canary in the coal mine?
Metro Vancouver developers slash condo presale launches as demand drops
https://vancouversun.com/news/local-new ... ulled-back
I personally believe that the market at this precise moment won't be the same as the market conditions in the late summer and fall. This is the beginning of a local/global recession year. On the one hand, that'll mean lower interest rates which actual help real estate markets. On the other hand, personal and business incomes will be falling in the future. That's going to put a segment of buyers/owners on a very shaky ground.
Real estate agents in Vancouver and Toronto are all telling buyers that they better compete aggressively on pricing at this moment as there are multiple buyers/offers. However, most of the multiple offer situations have been occurring in properties that were priced below the market price. This activity may give a false impression of the actual current state of the greater market. Here's just one example that I know of. A nice property sold a few days ago was clearly priced 10-15% below it's current value. It had 6-8 offers in a bidding war. It still sold moderately below it's current estimated value. That's two very different headlines, and both are correct.
There so many new projects that are coming up in Vancouver. I'm seeing so many NEW DEVELOPMENT signs that are suddenly appearing, where they weren't before. There's a WHOLE LOT of supply coming up. People should take a trip down Kingsway, Cambie, King Edward, 41st, Main, etc. Every week they appear to post a few more new development signs. If I were a SELLER, I'd ride this early spring wave as soon as possible before negative economic headlines start becoming regular. Investors who have bought into projects that are about to get occupancy permits are quick to post for-sale signs.
If new buyers can wait until the fall, winter and next spring/summer, they will get a lot more "home" for their money. But instead, most will listen to their real estate again and "buy now while you can get in". 2020 is going to be a very bumpy year. Predictions are extremely difficult these days. Who could have seen the economic and political impact from the Coronavirus, just 3 months ago? Are prices going up or down during the year? The answer is "Yes".