No wonder buyers are confused...

The real estate market is like any other market. Sure it's fuelled by need, a change in the exigencies of life and a desire to own one's own castle.

It's also driven or slowed by uncertainty and emotion. Vancouver still presents as beautiful, safe place to live with wonderful amenities. There is still a shortage of developable land; remember we are surrounded by mountains, ocean and the US border and water courses and the Agricultural Land Reserve also dilute what we can build housing on.

So why have buyers hesitated when there is more housing stock and prices have stabilized?

Because no one wants to be the greatest fool in the greater fool theory. 

And why do buyers believe they run that risk?

Because they are getting mixed messages. Below are two links from Canadian Real Estate Wealth both of which came out on Monday and both based on reputable sources.
 

If you are a buyer then buy for the right reasons, consider your longer time-frame, understand that the scarcity of developable land will continue and go have a sensible negotiation with sellers of homes you are interested in.