The Bank of Montreal says the drop should continue for a couple of years
VANCOUVER (NEWS1130) - Home prices will fall over the next couple of years in Vancouver according a report from
the Bank of Montreal.
Year-over-year home re-sales are down by more than 13 per cent in April and sales in the first four months of this
year compared to last year are down 20 per cent.
"I can best describe it as a softening of a market," says BMO Mortgage Expert Carolyn Heaney. "In the last couple of
quarters we've seen prices in Vancouver escalate to almost 163 per cent of what they originally were, so I would say
we had a bit of an inflated market. What we're seeing now is those prices are softening and it's a healthier market."
BMO Senior Economist Sal Guatieri says the price of homes in Vancouver and uncertainty over long-term mortgage
rates are creating a buyer's market.
He also says rich foreign investors who have driven up real-estate prices in Vancouver are now looking at cities that
are less expensive.
"The sizzle is coming off the Vancouver housing market," Guateri says.
"I think it's a good opportunity for buyers to take their time and look at the market," Heaney says. "It's also a great
opportunity for purchasers to get in to their banks, see what they can afford and maybe look into longer term rates."
The report also says condos are being overbuilt in Vancouver and that is curbing demand.