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Vancouver home buyers still in bidding wars despite being more risk-averse

A real estate sign is pictured in Vancouver on June 12, 2018. The Canada Mortgage and Housing Corporation says homebuyers in Toronto, Vancouver and Montreal believe foreign buyers are heavily influencing the market. A CMHC study surveying 30,000 recent homebuyers in the three cities says 68 per cent of Vancouver respondents, 48 per cent of Toronto respondents and 42 per cent of Montreal respondents believe foreign buyers are driving up home prices. THE CANADIAN PRESS Jonathan Hayward
Summary

CMHC survey finds that Vancouver home buyers are not willing to take financial risks.

But survey also finds 55 per cent have still found themselves in bidding wars.

Foreign investors is listed as the most influencing on price growth.

VANCOUVER (NEWS 1130) – Home buyers dealing with the ups and downs of the Metro Vancouver real estate aren’t feeling very comfortable with taking financial risks these days, but that hasn’t stopped many from entering into bidding wars.

A survey from the Canada Mortgage and Housing Corporation finds three quarters of buyers are not willing to take financial risks.

But Eric Bond, an analyst with CMHC, says over half of recent buyers say they were involved in bidding wars.

“The proportion of home buyers who reported being in a bidding war in Vancouver was 55 per cent,” says Bond. “Interestingly, that was actually the same in 2018 as in 2017, despite the big changes in the resale market that we’ve seen over that time.”

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One area that has shown change is in the expected price growth expectations of recent home buyers.

“Recent home buyers are expecting price growth of just one per cent, whereas last year they expected price growth of 10 per cent,” says Bond.

Vancouver home buyers still point to foreign investors having the most influence on price, followed by domestic investors, land scarcity and population growth.