Plummeting Real Estate in Vancouver Market
I’ve started to see a mass of eye catching titles about the plummeting real estate market in the greater Vancouver area. One in particular came from an economist that I follow in the states saying that sales has dropped by 86% in the first two weeks of August. I was a little suspicious of these numbers at first but as I confer with my real estate agent connections and clients it’s deadly accurate. These agents had difficulty planning a meal a few months ago and now they say the phone hasn’t rung with new business in a month.
It’s no real surprise, August 2nd is when the B.C. government introduced the 15% foreign homebuyers tax which I said has historically reduced house values by 10%. Some houses are now selling at 20% less market value than one year ago. The foreign tax and increased difficulty in currency leaving China have contributed to this lull in the market and unfortunately it looks like the market won’t be able to recover any time soon.
This reduction in market value is good news for those that prepared for it! In the words of Warren Buffet
“be fearful when others are greedy and greedy when others are fearful.”
This downturn in the market will create a great opportunity to purchase property at real value as apposed to the inflated prices that everyone has been paying in 2016.