“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.” ~Warren Buffett
Mr. Buffett could indeed be speaking about the current state of our Vancouver Real Estate market when he wrote that famous piece for the New York Times back in 2008. The Vancouver market is evidently fearful over what is going to happen over the next few months with the introduction of the 15% tax on foreign buyers. However as with all big change there are certainly several perspectives to consider especially if you are a potential buyer.
Currently there are possibly fewer homes on the market but that has been a longtime reality for the Fall/Winter season in real estate. What this can mean to the buyer is less competition and although you may spend more time looking, the home you want may be on the market already. During this fearful market, the price of that home you love has probably peaked or flattened out so you could be pleasantly surprised to find it more affordable than before. The tax has subdued the previous vigor of our market but an article by a CBC news journalist has pointed out;
“Figures also show the number of buyers in the market is still out pacing sellers, and so far, there are no signs of panic selling, boarded up homes, and speculators defaulting on multiple underwater mortgages.” CBC NEWS
Average prices continue to be average, it is a buyers’ market and we are seeing average homes experience price reductions so the bottom line is, if you are looking to buy for a longer time horizon, then now is the time.