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.
For more specific details pertaining to your area call us for assistance.
THE AZIZ GROUP