Opportunities will remain but inventory likely to be an issue in Vancouver housing market in 2010

In 2009 low interest rates and improved affordability allowed buyer's to make great purchases in Canadian housing markets such as Vancouver. Will that continue to be the case in 2010? Michael Polzler of Re/Max provided some insight into this question.

"While conditions were much more in the favour of the buyer in early 2009, most residential real estate markets had shifted into balanced territory heading into the latter half of the year. That said there were still many "hot pocket" areas across the country that experienced unprecedented activity as a result of strong demand and limited supply."

Vancouver was definitely one housing market with many "hot pocket" areas as we saw prices within them rebound to previous peaks seen in March 2008.  With economic recovery now underway, Vancouver's housing market is expected to remain stable though slow slightly as the year 2010 progresses.

 Mark believes that in many Canadian housing markets supply will meet demand, creating balanced conditions - favouring both the buyer and seller - throughout 2010.  He rightly emphasizes that inventory will be the "wild card", especially in larger markets like Vancouver in the later part of the year.  If there is continued downwards pressure on the number of homes listed for sale, we will experience more upwards pressure on home pricing next year and affordability will deteriorate.    

Historically low interest rates will continue to present major opportunities to home buyers and sellers in 2010 even if they do rise slightly. Whether you're buying your first home or upsizing into a larger one the timing will be good as the carrying costs will remain attractive.

For more information on Vancouver real estate market conditions visit www.deanwegman.com.

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