The Greater Vancouver Area and the City of Vancouver have been witnessing a slowdown over the last couple of months. There are several reasons for the Vancouver real estate market cooling, such as the changes in mortgage rules (introduced by the federal government in July 2012), as the maximum amortization has been reduced to 25 years from the previous maximum 30 years. This move obviously generated a reaction from buyers, as they experienced difficulties getting new mortgages from banks.(Vancouver Real Estate Market Sales Cool in January continued...)
Vancouver BC real estate market grew for almost seven consequent years, one of the longest and fastest growths ever recorded in Canada. Average home prices between years 2001-2007 almost doubled, while inflation in mentioned period was less than 14%. Naturally, such development severely lowered affordability of housing in Vancouver, especially for first time buyers.
When the well-known problems began on the US real estate market, Vancouver real estate seemed immune and continued to grow till the beginning of 2008. However, in that time the pressure of affordability demand began to influence our market and Realtors noticed slowdown, which grew much stronger in next months. Average price first stabilized and later dropped. With the outbreak of global economic crisis in the autumn 2008, Vancouver real estate sales fell to record-low values in January and February 2009 igniting the fear of painful and long real estate crisis, the same one we witnessed in the USA.(Vancouver BC real estate market: 12 months summary continued...)