Mastering the home-buying market

The two questions I am regularly asked since the pandemic are where the housing market is headed, and if now is the right time to buy.

There are certainly some challenges these days if you are looking to purchase a home in Metro Vancouver. Demand for housing continues to surpass the supply of housing stock, and until a closer balance is achieved, Metro Vancouver will continue to be a seller’s market

Housing supply is a complicated issue, and one that will not be solved overnight, even with the intervention of governments at all levels to address the challenges.

Housing inventory continues to lag behind demand and will do so for the foreseeable future as the industry faces serious labour shortages and challenges with material supplies due to the global impact of the pandemic. Delays, and “red tape” at the municipal level with zoning, approvals and permits complicate delivery of new housing stock, and on the resale side, with the uncertainties in the marketplace and recent double digit increases in property values, many owners are electing to hold on to their homes, further exacerbating the supply-side issue. Add in Canada’s plan to ramp up needed immigration to mitigate the labour shortages and this exerts even more pressure on the housing market.

The Bank of Canada is raising the prime interest rate to control a sharply rising inflation rate, driving up the cost of borrowing and adding to the pressure on first-time buyers looking to get into the market before further increases are realized. The prime rate has already bumped up .75 percent since January with another .75 percent increase anticipated before the end of 2022.

As a first-time buyer, it might appear too daunting and too complicated to purchase a home in Metro Vancouver, however, looking back over the past 20 years, the overall risk has been offset by the gains, and buying a home is still one of the best investments one can make.

First-time buyers need to know if the risk-to-reward ratio is right for their personal circumstances. By increasing one’s awareness of the market and buying strategies, the perceived challenges will begin to become more manageable.

Having worked in development and the housing industry for more than 40 years, I can safely say, doing your homework is essential when you are making one of the biggest investments in your life. Now you can learn from industry professionals with a personal approach through HAVAN’s Masterclass series, featuring six veterans of housing sharing their journey into homeownership with tips, market insights and their personal home-buying mistakes.

Empower yourself. Check out havan.ca/home-buying-masterclass/ to access this free video series.

The HAVAN’s Masterclass series speakers