Year end review - highlighted by Government & Bank intervention.

House market hardest hit"

It's time for your 2016 year end review, one highlighted by Government & Bank intervention.

What was shaping up to be a record year for sales and price increases in the Greater Vancouver Real Estate market quickly did an about-face when the Provincial Government stepped in.

As a result of rapidly escalating prices and public pressure the government introduced a Foreign Buyers tax in August which quickly cooled the market.

Hardest hit was the house market with an overall sales decrease of 52% vs. last December. This 'sales shock' was no surprise as a house with land has been the preferred choice for the majority of mainland Chinese buyers.

Condos fared better with December sales off 25% vs. the same period last year. Recently Vancouver introduced a controversial 'Empty Homes tax' in an effort to loosen-up the extremely tight rental market. We’ll be watching closely to see how this new tax will affect the market.

At the same time listing inventory has dropped in-step with the sales decline helping to keep prices steady with the exception of house prices which have fallen most. This substantial decline in the number of listings in the last few months of the year was no surprise as many sellers chose to hold-off or remove their properties from the market in hopes of more favorable conditions.

However, that could be a mistake for motivated sellers as there is a shortage of good listings in many areas. Demand remains strong for lower-mid priced 1 & 2 bedroom condos with first-time buyers and investors looking to move into the market as rental rates continue to surge higher. There's opportunity right now in the house and high-end condo market for those that have been waiting and are ready to act.

What's in the cards for next year; will Foreign Buyers return, will lenders and government help with affordability, can the 'Trump Bump' in the US. & first-time buyers jump start this market?

Call me would be great to hear from you and explore the opportunities of the coming year.

"Be fearful when others are greedy and greedy with others are fearful"

Warren Buffet.

Sales/ Listings Statistics and Graphs for all areas.

All information is approximate

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