Despite the threat of rising interest rates, stricter mortgage regulations, and growing government intervention, the Greater Vancouver Area’s (GVA) housing market continues to defy expectations.
Fraser Valley’s HPI Benchmark Price, which measures the rate at which housing prices change over time, surged more than 15% year-over-year for single-family homes in March. The HPI Benchmark Price for all properties in Greater Vancouver rose more than 16% during the same period. Yet at the same time, Fraser Valley was reporting an almost 25% year-over-year decrease in sales.
“High prices, new tax announcements, rising interest rates, and stricter mortgage requirements are among the factors affecting home buyer and seller activity today,” said Phil Moore, president of the Real Estate Board of Greater Vancouver (REBGV). “Even with lower demand, upward pressure on prices will continue as long as the supply of homes for sale remains low.”
The fact that March 2018 was the “quietest” March for home listings since 2009, and with total inventory across the GVA still below historical norms, means that real estate prices are probably not going to cool anytime soon.
Also read: House prices continue to soar in Metro Vancouver