Metro Vancouver home sales surge 45% this October. Are price declines coming to an end?

A busy month

The October 2019 real estate market was 45% busier than last October, with 2,858 resale transactions – the most in any month this year. It was also busier than September this year by about 25%.

Prices are still about 5-8% lower than last year’s, but they are stabilizing.

While it’s still possible to negotiate on a purchase without having 10 people behind you ready to make unconditional offers, that time could be coming to an end.

Even with the nonsensical mortgage stress test still in effect, declining worldwide interest rates have recently made it possible for more Canadians to get into the housing market (with 5 year fixed terms sinking below 2.50% with some financial institutions).

The psychology of the market seems to be favoring the view that price declines are coming to an end.

It is impossible to “time the real estate market” (except by accident), but if you are considering a real estate purchase, now would seem to be a good time to start looking. Historically, when the market gets going, a 5-10% increase doesn’t take long to materialize.

©Pazder Law Corporation (2020)

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Questions? Call Kenneth Pazder or Melissa Valana (604-682-1509) at Pazder Law Corporation anytime for a free consultation.