Vancouver sales in were down 40% in January of 2017 compared to last January. It was also down 11% from December of 2016. It is always interesting to hear the various theories on where this is going and why it is happening.
Some say it is a Real Estate apocalypse that has been long over due and that the entire economy of Vancouver is going to crash into the abyss. Personally I believe that the Real Estate market is driven by consumer confidence for home buyers.
The 15% tax implemented by the BC government has given buyer confidence a brisk slap in the face. The market will go through some correction and even some price softening because of this but at the end of the day Vancouver is the second strongest economy in Canadian cities behind Toronto. I would be surprised if this correction lasts till the end of the year. The only caveat to that prediction is that it is still too early to really know.