Falling prices and the expectation that this trend will continue are increasingly placing investors on the horns of a dilemma – whether to sell or hold. The study, which was carried out by Genworth Canada, shows that the price for condos in Vancouver is expected to decrease by 2% to $348,152, a statistic that may influence many investors to sell now or hold on for the long-term.
However, in Toronto, Canada’s largest real estate market, the numbers paint a contrasting picture. The results of the study forecast a 2.5% price increase for Toronto, with the average vaulting to $312,352.
Investors in the greater Vancouver area may wish to strike while the iron is hot and sell off some of their properties now, before the decreases in prices occur.
Although normally viewed as an area that is ripe for investment, the expected drop will transform Vancouver into a buyer`s market. Some investors may choose to leave their portfolios intact, with the hopes that the prices will eventually reverse their downward course. Condos remain a good option for investors in most major markets, especially for retirees and first-time investors.
However, the Genworth study predicts that the condo bubble in some of these markets may soon burst, an issue may be alarm some sellers already grappling with price declines.
Still, increases in population, especially in various employment sectors, in addition to lower interest rates, may be instrumental in helping to reverse this downward trend in Vancouver.
If these increases do occur, condo purchases in the city may increase over time, which will boost the market, making the area attractive to prospective investors once again.
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