People have been flocking to Vancouver Island for the last several years, and it’s no wonder. Properties on the island are more affordable than real estate in other areas, and it’s easy to find something with a nice amount of land. Due to the appreciation, buyers also feel confident in their investments. The market has been hot for so long, though, that you’re probably wondering if it’s cooling off.
Get the details on what to expect for Vancouver Island real estate in 2019.
Solid and Stable
Vancouver Island’s real estate market won’t be as hot in 2019, but that doesn’t mean it’s tanking. Instead, it’s just going to stabilize. It might not be as smoking hot as it was, but stability is a good thing in real estate.
Stability doesn’t mean prices won’t go up. Median residential resale prices are expected to hit $465,000 in 2019, which is a 2.2 per cent growth. That might not seem like much but compare it to the expected growth in Victoria. It’s just supposed to be 0.3 per cent, so it’s clear that Vancouver Island is the hotter option right now.
Retirees – the Key to Stability
Vancouver Island has become a haven for retirees, and that’s keeping the market going, even as other areas are experiencing significant downturns. The parts of Vancouver Island that attract the most retirees will experience the most significant price increases in real estate. That makes these areas hot for investors.
Why Is the Market Slower?
The market is still stable on Vancouver Island, but you can’t help but wonder why it’s slowing down. This has to do with a variety of factors, including the new B-20 mortgage stress test that kicks in for buyers who put at least 20 per cent down on real estate. The stress test has reduced purchasing power and cooled the real estate market. There is currently an effort to pull back on this new federal regulation, and if that occurs, the market could heat up once again.
With the Stress Test, Stable Is the New Hot
With changes to the market, Vancouver Island can still be considered hot. Its stability and small growth show how healthy the market is, and that’s great news for real estate investors. If you’re looking for a good place to put your money in 2019, Vancouver Island just might be the location for you. Look at available properties and see if you’d like to pick up an investment to rent out to retirees or other residents.