Here’s what you can expect from our market next year.
2018 is just about over with, and we’re wrapping up the year with Christmas parties, get-togethers, and other holiday events. It’s never too early to begin thinking about what the new year will hold for us, so today we’ll be looking at where our market is projected to go in 2019.
Before we begin: We’re in a buyer’s market for the first time in five years, so it may be a good time to consider buying an investment property, upgrading or downsizing to a new home, or even buying your first home.
The information for what to expect in 2019 comes from the British Columbia Real Estate Association. Though 2018 was a bit of an anomaly, the BCREA does a great job of forecasting future markets. We’ll be down 20% in sales for this year with around 80,000 sales throughout the province. Greater Vancouver is down about 30%. The BCREA projects that we’ll rebound from decreased sales next year with a province-wide increase of 12%, a 22% increase in Vancouver, and a 15% increase in Fraser Valley.
They’re projecting price increases of 3% in Vancouver and around 5% in Fraser Valley. With the mortgage qualifying rate at about 5% right now, the rate at the end of 2019 will be around 5.5% to 5.75%—this will affect your buying power. Over the last year and a half, the qualifying rate has gone up 2% higher than what your mortgage costs are.
The government recently released reports that detailed how money laundering has affected the real estate market. They believe that, in 2016 alone, over $1 billion was laundered through BC property sales. There will most likely be more restrictions put in place to thwart laundering.
If you’re planning to jump into the market in 2019, determine your goals. As mentioned before, it’s a great time to consider buying property, so take a look at your assets and figure out what you’d be able to do in our market. Talk to a mortgage broker and find out what you can qualify for, look at properties, and get in touch with an agent to begin the process of your next purchase. If it’s your first time buying, make sure you understand what closing costs entail.
If you’re looking to buy or sell, have any questions, or need more information, feel free to reach out to us so we can help you with your goals. We look forward to hearing from you soon.