The Vancouver Real Estate market has been solid and healthy for over a decade.  Over the last 10 years the average home has grown 159% in value.  Many first time home buyers are debating when to purchase? THE ANSWER IS .....   NOW!

Recent reports and articles have pointed at a small dip in value accross the Vancouver Real Estate Market lately.    Teranet-National Bank House Price Index indicated that Vancouver's Real Estate prices dropped in January 2012 by 0.2%.  This is not catostrophic!  The average home price at the end of 2011 was $561,026  The average home price in January 2012 is $559,904. 

BCREA (BC Real Estate Assocosiation) forcasts a dip of 2.2% in the Vancouver Real Estate Market through out 2012.  Bringing the lowest average of the year to $548,500.  This is an average taking into consideration all types of homes in all the different areas of Greater Vancouver.  Unless your first home is a million dollar property, you won't see much of a change in the market. 

So you ask.... "if prices are not dropping that much why should I buy now"?

This is the first time in a decade that Vancouver Real Estate prices have dropped at all (not including the last six months of 2008).  Mortgage rates are at a historical low with 2.99% on a 5 year fixed mortgage and 2.89% on a 4 Year Fixed. These significantly low mortgage rates will not last! 

This is the perfect recipe for a Buyer... prices dipping and low interest rates . 

Lets play devils advocate for all those who still don't believe.....  Once interest rates go up by even 2% (maybe in 2013 or 2014), home prices will come down.  Lets say they have a big drop of 15% .  This will bring the average home price down to roughly $466,000.  Looks sooooooo much better right?...... well keep reading.

In 2012 at 2.99% interest rate with 20% down, with an average home price of $548500 the monthly mortgage payment is $1846.00

In 2014 at 4.99% interest rate with 20% down, with an average home price of $466000 the monthly mortgage payment is $2002.00

Although, prices might dip in the next few years, the current low interest rates are the major factor why buying now makes sense.  Lower rates, lower monthly payments.

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