A price reset is underway in the Metro Vancouver housing market, so says Royal Lepage in its latest House Price Survey.
It has found that while overall home values fell by 1.9% in the first quarter of this year, the first time that’s happened in 4 years, it appears there is pent-up demand in the spring market.
Randy Ryalls of Royal Lepage Sterling Realty says after a period of astounding growth in 2016, eroding affordability and government intervention has cooled the housing market, at least temporarily.
But he says that’s changing.
“The first three months of the year have just slowly been gaining momentum as we go along. It seems like we’re right back to multiple offers on condominiums and well-priced houses are right back in there as well. It’s a very busy market. I think the only constraint really is just a very low amount of inventory out there right now”.
Ryalls says the problem with government intervention in a cyclical free market like housing is that it increases the potential for market volatility, sending prices down and then sharply back up again.