Wow…2016 what a year…

We did it again RE/MAX Oceanview top listing and selling office on the Coast 21 years in a row. There hasn’t been a year like this one since 2004, there were about 2800 sales, this past year we saw 2996 sales on the coast.

What does that mean going forward into 2017…? No one can predict the market, but a few key factors are at play:

  • Interest rates may continue to sneak up..
  • The tightening of mortgage qualifying rules has slowed the market.
  • The 15% Foreign Buyers Property Tax, has had an effect on Vancouver.
  • Same thing with the 3% PTT over $2,000,000.It only affects a small part of the market, but there is that “trickle down” effect.
  • Prices – buyers are already wary of the higher prices –The higher they go, the more hesitant some buyers will become.
  • Supply – it’s predicted there will be fewer new listings coming on the market. This means necessarily fewer sales. But what else does it mean? Upward pressure on prices.
  • The Press and the Canadian Real Estate Bubble. We’ve been hearing about this for a number of years now. Many financial pages have predicted the bubble will burst soon. These sorts of things tend to be self-fulfilling. But there are others who say it just isn’t going to happen any time soon
  • The Trump effect
  • Consumer confidence index- one of the highest numbers we have seen.

With all these factors at play…real estate publications feel sales will fall about 10-15% in 2017, 2016 was record breaking year for number of sales, so this isn’t tough news to take, we could still have a good market. In looking at trends 2017 market may take shape more like 2014 or 2015, which all in all will be a good market.