Viewed as the hottest market since late 2014, Vancouver is in unknown territory. Is the new Foreign resident tax introduced on August 2nd causing the Residential Home and Condo market to weaken and reduce prices?
There is no doubt that the market is not as robust as it once was. Multiple offers have decreased, homes or condos without an accepted offer in the first 2 weeks tend to be sitting for weeks and Real Estate transactions year over year have reduced significantly. But what does this mean? Is the Greater Vancouver Real Estate market going to have a 50% price correction? Will homes be more affordable for the average income builder in the near future? Unlikely.. but unknown factors have a role to play.
Oil is a big export for Canada. Competing with other more stable markets in this field such as Saudi Arabia has made it difficult to be aggressive. Canada's debt to disposable income ratio for 2016 Q1 per Stats Canada was over 160%. Yes. 160%!!! Even in a market of low interest rates this cannot sustain itself for long!
Understand all market influences before purchasing a home or condo in Greater Vancouver over the next 6 months. It may be your biggest asset or your greatest regret.