Winter Olympic Games period a good opportunity for home buyer’s in Vancouver

Historically low interest rates, a slowing pace of sales, and a slight improvement in number of properties for sale leading into the Olympics are creating some great real estate opportunities.

Though prices are close to their May 2008 peak, first time home buyers and move up buyers still remain a significant part of the market activity and investors are returning in bigger numbers. With the Bank of Canada's recent announcement to keep the prime lending rate at 0.25% until at least June or July, the cost of servicing a mortgage has rarely been better.

 It's tough to know what exactly the Olympic effect will be on our market during the games, but many expect it to be a quieter period for home buyers and sellers.  For this reason it will be a good time for motivated buyers to search for properties as the possibility of competing offers is greatly reduced.  

A recent UBC study supports other international studies in that residential real estate markets would be largely unaffected by Olympic activity either before or after the games.  The UBC study concludes that the hosting of an Olympic Games does not prompt an increase in local house prices, and that prices do not crash after the event is over.

We can however expect a few changes by the second half of 2010. Interest rates will likely rise slightly by the second or third quarter due to anticipated economic growth and inflation. Following this we can expect supply and demand to become more aligned, price appreciation to moderate,  and a period of more "balanced" conditions in the real estate market. 

 

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