Having an abundance of buyers in the market with fewer sellers will put pressure on the market. This scenario tends drive prices up as there will likely be biding wars due to low inventory levels relative to the number of buyers looking to purchase. We'll see people outbidding eachother and pushing prices up. This has been a problem for the last number of years with real estate in the Vancouver area, as there has not been enough supply.
Now we're seeing more supply come to the market. The government has implemented new rules for mortgage qualifications, making it more difficult for people to borrow money. We now also have the foreign buyer’s tax, schoo taxl, empty home tax, and speculation tax; the list goes on and on. Coupled with rising interest rates, we've seen the real estate landscape soften somewhat.
Last time we saw a slow down was in 2008/2009 and anyone who bought then has done very, very well. Warren Buffet continues to say, “Be fearful when others are buying and buy when others are fearful”. It’s a great time to buy long term in Vancouver. We're seeing more inventory come on the market, which is allowing buyers more time to purchase.
Watch the video below to learn more.