The Vancouver real estate market is seeing more inventory coming online—above the 10-year average—which is great news for buyers. However, sales remain well below the 10-year average. The big question is: why is demand low?
Could tariffs be playing a role? Possibly. Tariffs create economic uncertainty, forcing businesses to adjust by finding new suppliers or shifting their customer base to tariff-free markets. This transition period can slow down economic activity, making people cautious about big financial decisions—like buying a home.
What Could Happen Next?
The Bank of Canada (BoC) is rumored to be watching the economic impact of tariffs closely. If things slow down too much, we might see rate cuts to stimulate the economy. Historically, lower rates increase demand, leading to rising prices and more competition among buyers.
Should You Buy or Sell Now?
- If you’re financially prepared, have a secure job, and life circumstances are dictating a move—do it. Real estate is a long-term investment, and waiting might not benefit you.
- If tariffs will directly impact your financial situation, it’s okay to hit pause and make the right decision for you and your family.
- If you’re a speculator waiting for lower rates—be cautious. Lower rates tend to drive prices up, and competition gets fierce. More multiple offers, less time for due diligence—it’s not an ideal position to be in.
- First-time buyers and upsizers? Now’s your chance! More inventory and less competition work in your favor.
- Downsizers? You might consider waiting. If rates drop and the market heats up, you could sell your higher-value property at a premium.
Final Thoughts
The market is shifting, and whether you make a move now or later depends on your personal situation—not just market timing. If you need guidance on navigating these changes, let’s chat!