Well, it’s a new year and there’s a new outlook on the horizon for the Vancouver condo market. While there are still some buyers sitting on the fence waiting to see what’s going to happen with prices overall, many investors and first-time buyers are recognizing that condos for sale in Vancouver are a smart choice right now.
Vancouver Condo Market Looking Healthy
What most of the fence-sitters are worried about is in the detached market, in which we’ve seen declines of nearly 10% and many expect to see a further slide. In comparison, the condo market is actually quite healthy.
Our Vancouver Condo Pro, Andrew Way, doesn’t anticipate any decline the condo market, so long as sellers don’t price too high. But there is little reason for prices to rise, as there are now even more buyers jumping into the condo market due to British Columbia’s new interest-free loan initiative for first-time buyers, The B.C. Home Owner Mortgage and Equity Partnership.
If you haven’t heard, the B.C. government will match the down payment contributions of eligible first-time buyers up to 5% of the purchase price, to a max price of $750,000. The loan is interest-free for the first five years. As we showcased in our World Condo Prices research report, Vancouver average price-per-square-foot is $900, meaning an average 800sqft condo costs around $720,000. This loan-initiative presents a new way for first-time buyers to purchase an average Vancouver condo.
Buying a condo in Vancouver right now is the natural choice simply because of affordability, and this is further amplified because one of the criteria to qualify for the Home Partnership program is that the property must be $750,000 or less. You don’t see many detached homes selling for that number.
Vancouver Condo Market Looks Good to Investors
Over the last few months, Andrew Way has seen more investors than buyers looking for their own principal residence because many investors believe in this market. They feel strongly that we’re simply seeing a pause in the aftermath of the foreign buyer’s tax and that prices will resume a more moderate upward trend.
Many buyers expect to see a big correction, but the condo market remains much healthier than the detached market.
Andrew Way is our resident Vancouver Condo Pro. Feel free to contact Andrew!