what's next for our market?

The Real Estate Board of Greater Vancouver just released a video market update which "takes a broader look at the housing market in terms of where we are now and where we may be headed next year.

We have been in a strong market cycle in the last two years following a quieter than normal 2012.  Demand in the metro Vancouver housing market began to rise and has been strong and steady since.

In April of this year we recorded our first month of over 3,000 sales since the summer of 2011.  Sales have remained at or near the 3,000 mark since.

With more buyers active in the market place we seen gradual yet consistent increases in home prices. The benchmark price for all residential property types hit a peak of $625,000 in May 2012 dropping to a low of $588,000 in January 2013. The market gradually recovered those losses and surpassing the 2012 peak in June of this year and prices have continued to increase since then.

When we bring things down to property types we see that home prices have increased between 6 to 10 percent since the beginning of 2013.

As we prepare for a new year the question we are often asked is...what’s next for our market?

Economist of the BC Real Estate Association, the Canada Mortgage and Housing Corporation and Central 1 Credit Union our market is well positioned to stay steady moving forward.  All of these institutions are projecting minimal fluctuations in home prices and sales in 2015.

The total number of MLS sales is expected to remain in the 32,000 to 35,000 range in 2015 and home prices are expected to increase 1 and 2 percent over the year.

Some measures that help us to access the year ahead is related to mortgage rates and migration patterns. Analysts expect interest rates to remain low in 2015 but rise slightly compared to current levels.

Most projections also anticipate 30,000 to 35,000 new residents moving to metro Vancouver in the coming year.  We expect this activity to contribute to market demand in the year ahead."