VANCOUVER (NEWS 1130) — Now isn’t the time to buy real estate if someone is willing to wait for a better deal, according to a local analyst who predicts condo prices in the Vancouver area are set to decline for years.
Eitel Insights founder Dane Eitel says it’s not the time to try to catch a falling knife, or rather the longer someone holds on to a property they can’t afford, the harder it will be to get rid of it.
He’s advising buyers who can afford to wait for a better price to hold off until at least next year since “need-based selling” will be coming into the market in 2020. He says many investors facing hardship because of the pandemic are also feeling mounting pressure to sell.
“So, I would definitely hold off purchasing a condo. You could really almost sell your condo property right now and go away for a long time, come back and you’ll see that similar type property at extremely lower values.”
The average price for a condo is more than $660,000, but he says that’s going to change.
“For the condo market, January 2018 was the peak at $750,000. Currently, we’re down 12 per cent from that. We’re right at $660,000 for roughly six months in a row in the condo market average sale price,” Eitel explains.
Within two years, he says that price should fall to $525,000 in a few yeas, and heavily-mortgaged owners may soon be forced to sell.
“There are buildings that have been completed and they’re roughly 60 per cent available –30 per cent for sale, 30 per cent for rent– so, all these investors that purchased are going to be put in a tough place and you’ll see a continuation of increased inventory,” Eitel says.
He adds as of April, nearly 4000 condos are listed for sale across the Lower Mainland, but just under 400 sold.
However, Eitel also says the situation is not as bad for single-detached homes where the average price in that market could drop below $1.4-million dollars, down from more than $1.6-million it is now.
Douglas Todd: China's real-estate investors down on Vancouver, but not out – Vancouver Sun
Huawei CEO Meng Wenghzou must stay under mansion arrest following this week’s court decision in Vancouver. China’s authorities rage, while continuing to unfairly jail Michael Spavor and Michael Korvig and drastically cut imports of Canadian canola.
Rival ethnic Chinese groups clash in the streets of Vancouver over Beijing’s clampdown on Hong Kongers’ freedoms. COVID-19 kills more than 6,800 across Canada and lockdown virtually ends international travel, sending home many of China’s foreign students, especially from Toronto and Vancouver.
We apologize, but this video has failed to load.
China-Canada relations are at their lowest ebb in decades, particularly according to China’s pervasive regime-backed media outlets, which this week called Canada a “pathetic clown.”
And that has implications for Metro Vancouver’s housing market.
This region of 2.6 million is feeling the impact of soured relations with China, even while polling suggests the city continues to retain some of its traditional allure to the world’s most populous country as a desirable place to experience and invest in.
Ontario Real Estate Association hands down new guidelines as folks begin looking back into housing market – Barrie 360 – Barrie 360
While officials are expecting the Canadian housing market to take a real hit because of the COVID pandemic, Ontario realtors are still taking steps to protect those who want to buy or sell a home.
The Ontario Real Estate Association (OREA) has issued a series of guidelines to protect the health and safety of not just those in the market to buy or sell, but the realtors doing the deals too.
Most home showings have been done virtually since the emergency was declared in Ontario, and the OREA says that should become standard practice for now. Documents, forms, and acknowledgments should be processed electronically according to these guidelines. The OREA asks that physical home showings should be preceded by thoroughly disinfecting surfaces, and a physical distance should be maintained while interacting with clients directly. The OREA asks that personal protective equipment be used when distancing isn’t possible. A complete list of the OREA’s recommendations can be found on its website.
Now that the Ontario Government has announced a phased reopening, the OREA feels many consumers are looking to get back into the market in person. “The health and safety of our Realtors and their clients is OREA’s top priority during this pandemic,” says Sean Morrison, President of OREA. “As Ontario’s economy reopens, many Ontarians are looking to get back into the real estate market. Realtors are here to help make home buyers and sellers feel comfortable and safe while they work to find their dream home. OREA’s guidelines have been informed by up-to-date information from public health, best practices from the industry and experiences in jurisdictions across North America.”
RELATED: HOUSING MARKET TO BE HIT HARD BY COVID PANDEMIC THROUGH TO THE END OF 2022, ACCORDING TO CMHC HOUSING OUTLOOK
On Wednesday, the Canadian Mortgage and Housing Corporation released a housing market outlook that shows the impacts of COVID-19 will be felt on the industry right through to the end of 2022. Housing starts, sales, and prices within Ontario will be more impacted than some, including B.C. and Quebec, but less than those of oil-dependent Alberta or Saskatchewan.
Quebecers love the 'burbs, real estate poll suggests – Montreal Gazette
A survey conducted by the RE/MAX Québec real estate firm suggests that 46 per cent of respondents — particularly those with young children — could see themselves buying a home in the suburbs.
The poll, carried out just as the effects of the COVID-19 outbreak were beginning to be felt across Quebec, found that 28 per cent would like to settle in the city while 21 per cent preferred the country.
We apologize, but this video has failed to load.
Among potential sellers, the Léger poll found 58 per cent would put their homes on the block to move somewhere with more land, while 55 per cent would do so for a larger home.
A large proportion of respondents ages 55-64 would sell in order to move to a less expensive home.
RE/MAX Québec vice-president Sylvain Dansereau said the polling dates were not changed despite the health crisis, adding that a second phase of the survey will be carried out this autumn to measure the effects of the outbreak on the real estate buying and selling preferences of Quebecers.
Quebec’s real estate industry received government authorization to resume operations on May 11.
The poll was conducted March 17-29 with 1,400 respondents in six regions of Quebec and has a 2.6-per-cent margin of error 19 times out of 20.
Calm before the storm for Japan suicides as coronavirus ravages economy – The Province
Town of Outlook passes social media policy for employees, council – The Outlook
Trophy Tracker: Vezina – NHL.com
- Sports22 hours ago
How Street Fighter helped lay the foundations for the esports boom
- Sports23 hours ago
Maple Leafs’ Dubas on winning with an asterisk
- Investment19 hours ago
Westwater Resources to Present at the 121 Mining Investment Online Americas Conference on June 2-4, 2020 – Financial Post
- Science7 hours ago
Tesla’s Musk earns $770M in stock options, company confirms
- Health7 hours ago
Three New COVID-19 Cases In Campbellton Region
- Media7 hours ago
Donald Trump justify his social media crackdown
- Sports22 hours ago
Hamilton would play for Hurricanes
- Politics21 hours ago
Climate Politics: Trendspotting – Resilience