What is happening to the North Shore real estate market?
Overall property prices in West Vancouver and North Vancouver remain strong. Condos are a hot commodity right now. Very high-end properties have seen a big decline in demand which is reflected in much longer time on the market, and in most cases having big price reductions. Real estate listing inventory is extremely low compared to the same time period last year. There are still many buyers eager to move to the North Shore, but very few people are selling homes at this time.
As long as the interest rates remain low, most people will continue to be in the position to keep up their current payments. Should interest rates suddenly increase, then there is a possibility that a real estate market crash could follow, however, this is not likely to occur. I do not predict a drastic market crash such as we saw in the 1980's.
I foresee prices leveling off and staying strong and steady, but not increasing dramatically as they have done over the past year. Over the past year property prices have increased 20%, the industry predicts that there will only be an 8% increase in 2007.
Let me know what you think.