There was an interesting piece in the Vancouver Sun titled Repeat buyers, investors behind B.C.'s Pandemic Real Estate Boom: Analysts
I found this to be an interesting read as it talks about people using existing equity to purchase second or third or more properties. This has had the effect of squeezing out first-time buyers in places like the Fraser Valley. In other words, during the recent boom, first-time buyers have comprised a smaller proportion of the buyer pool.
I empathize with new buyers looking to get a foothold on the real estate ladder in Metro Vancouver and the Fraser Valley. To some extent, the financialization of local real estate has meant unprecedented competition for those buyers simply looking for a home to live in.
To the prospective first-time buyers of Metro Vancouver and Fraser Valley real estate, I would say that they should not give up hope. After this spring, we may see the effect of higher mortgage rates cooling sales down and maybe then prompting more people to list their properties for sale, once they see the market shifting. And a fading or disappearing pandemic may also prompt more homeowners to list and sell.
Trees don't grow to the sky. The financial laws of gravity also apply to real estate prices. There are always cycles in markets and the pendulum will eventually swing back into balance and maybe even in favour of buyers, sooner than we think. It wouldn't be a suprise to see prices level off, even without a big uptick in active listings. And if we do see a meaningful increase in supply, then prices might even give back some of the recent gains.
Bottom line, first-time buyers don't despair. Your time will come. Market conditions will change. They always do. Bull markets don't run forever. I'd suggest you have a watchlist in hand and keep an eye on things this year. But don't succumb to FOMO and making rash decisions that could negatively impact your financial future.