TD Announces Real Estate Prices to Go Down in Lower Mainland BC

June 19, 2012 | By

This past week, the TD Bank of Canada announced that they predict real estate prices in the Lower Mainland to drop 10-15% in the next 2-3 years. Depending on what area you live in, clearly will affect the range in price drop. With areas such as White Rock, Surrey and Langley being go-to locations for a lot of families as it’s more affordable, this area may be least hit and affected by it all. However, the core areas of Vancouver – such as Yaletown, Coal Harbour, Kerrisdale and West Vancouver, will likely take the largest hit with their multi-million dollar penthouses and palatial homes – which would result in the greatest losses based on overall housing costs.

But one mans loss is another’s’ gain, and this comes as good news for buyers and investors looking to get into the real estate market. It will reduce the cost of purchasing a home or investment property throughout the region, and those who can afford it will be taking advantage of these diminished prices.

However, what does it mean for sellers? Well, depending on how long you have owned your current home, it can still be a profitable sale despite the pending decrease in your selling price. Especially if you’re looking to repurchase once you’ve sold your current home. Not all reduction is real estate housing prices are a bad thing; in fact it can create a big boom in purchases and increase a buyers purchasing power. So although the home you might be looking to sell may go down in value, it will likely sell quicker then if it was being sold in our current inflated real estate market.

Basically – the sky isn’t falling nor will you lose your shirt, so long as you made a wise investment on the initial purchase of your home. Don’t scramble to sell your house in hopes of avoiding this pending “doom”. In the same token, don’t hold off on buying a home in hopes of your dream bungalow going down in price. These ebbs and flows are to be expected, and price and demand play a large role in maintaining a healthy economy.

Clearly the governing parties who dictate rate decreases are finally realizing that the current market prices in the Lower Mainland are out of reach for a lot of families looking to purchase a home. This type of inflation is causing slower buying decisions, so getting the housing price point back to economy standards is much needed for movement.

So if you want to take this time to save up some additional funds in hopes that this price drop comes to fruition, there is nothing wrong in being prepared and having a larger nest egg. However, if you’re currently in the market for a home – don’t let this prediction scare you off from purchasing one in the near future. A home purchase with the intent to stay put anywhere between 5 and 10 years is still a worthwhile investment.

Investing in a home is something we should all consider wisely, so having this knowledge of a possible price reduction is great to know, but don’t let it be your only deciding factor. Talk to a knowledgeable real estate agent about the pros and cons, and move forward with your pending move with peace of mind!

Filed in: Buying and Selling Real Estate

About the Author (Author Profile)

Andrew is a West Coast enthusiast through and through. He is a native of the area that you will often find adventuring on one of the many sea to sky activities that abound in the Fraser Valley. Along with being in love with the place he calls home, Andrew is a well known and respected Realtor focusing on helping others to find their own perfect home in Langley, Surrey, White Rock and beyond! Visit www.yourperfecthomebc.ca to find your perfect home.

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