Is The Metro Vancouver Real Estate Market Truly In Free Fall?

Evidence from realtors and MLS data is showing the Vancouver real estate market is in the midst of a major slowdown, with prices dropping and sales plummeting, but some experts say it’s too soon to tell.
It’s sufficient to leave the feeling that property values in Vancouver’s sky-high real estate market could crumple. For sure, on the off chance that you dive into the most recent statistics released on Friday by the Real Estate Board of Vancouver, you’ll see that the average cost of a home in the district has really fallen definitely.

That is a loss of about $350,000 on the average home one could finish up.What’s more, contingent upon whether you are a buyer, seller or renter, that could look like incredible news, frightful, or truly simply irritating. But, the fact of the matter is, unless you’re one of those lucky people working in the upper end of Vancouver’s luxury market, the average cost shouldn’t mean squat to you. Here is the motivation behind why. average costs are only that. They take every of the homes being sold, including those worth $5 million, $10 million or $15 million, and place them in the same box as the considerably more typical single-family residence.

What’s more, contingent upon whether you are a buyer, seller or renter, that could look like incredible news, frightful, or truly simply irritating. But, the fact of the matter is, unless you’re one of those lucky people working in the upper end of Vancouver’s luxury market, the average cost shouldn’t mean squat to you. Here is the motivation behind why. average costs are only that. They take every of the homes being sold, including those worth $5 million, $10 million or $15 million, and place them in the same box as the considerably more typical single-family residence.

Here is the motivation behind why. average costs are only that. They take every of the homes being sold, including those worth $5 million, $10 million or $15 million, and place them in the same box as the considerably more typical single-family residence.

They take every of the homes being sold, including those worth $5 million, $10 million or $15 million, and place them in the same box as the considerably more typical single-family residence.

What’s more, it just takes a couple of those stratospheric arrangements to skew the average quality for the entire market pretty significantly.According to the

According to the Zolo website, the city of Vancouver currently has an average home price of $1.1 million, down 20.7 percent over the last 28 days and down 24.5 percent over the last three months. The average detached home is $2.6 million, down seven percent compared to three months ago. North Vancouver detached homes fell 10 percent in price in three months down to $1.8 million. Their average home price for all properties fell 17.3 percent in that time period to $1 million.

So when the flurry of activity at the luxury end of the market dropped off this summer, with the reported prices of some homes dropping by millions, it should come as no surprise to see average prices dropping dramatically too. However, that’s not what the numbers say is happening across the rest of the market, and why typical homeowners should not be looking at the average price and concluding that the value of their family home is suddenly in free fall.
Despite how tantalizing the drop in price may be, economists and experts warn that using averages in real estate prices is inherently problematic.

Zolo’s CEO says the foreign buyers’ tax has certainly stopped speculative buyers. This has caused many other buyers to take on a “wait and see” approach, which has essentially frozen the market.

There is no doubt Vancouver has supercharged real estate values, as prices have outstripped wages for years, and griping about real estate is more popular than the weather. But, unless there is a mass exodus from this city, that’s all unlikely to change.

So when the next headline makes you wonder if the bottom’s fallen out of the market, and your home’s value is in free fall, take a deep breath and remember: the typical homeowner has a lot less to fear than the average.