B.C.’s housing market is expected to cool off in the coming years. (The Canadian Press)

Buyers could take the reins in B.C.’s hot housing market: CMHC

Government policy and natural market cycles are slowly cooling down real estate

B.C.’s hot real estate market is expected to continue to slow over the next two years, according to new figures from the Canadian Mortgage and Housing Corporation.

House prices in the province, especially in Metro Vancouver, are set to level out in line with salaries, jobs and population growth, the Crown corporation said Tuesday.

New construction is also expected to slow down to match lower demand, with condo starts barely hitting 25,000 a year in B.C., down from 31,318 new condo starts last year.

“Shifting market conditions across B.C.’s large urban centres is resulting in movement back towards balanced or even buyers’ market conditions in some cases, which is beginning to flatten price growth or, in some areas, result in price declines,” the corporation’s report noted.

Adil Dinani, a Coquitlam-based realtor with Royal LePage, said the slow shift towards a buyers’ market was a mix of government policy and natural market cycles.

“If you look at the past decade since 2009, when we came out of the heights of the recession, we’ve been the beneficiaries of a very strong real estate market,” said Dinani.

“We’re at a point where adjustment and moderation like we’re experiencing now is normal and natural.”

READ MORE: Rate hike could ‘compound’ slowdown of B.C real housing market

READ MORE: B.C. home sales continue to decline: real estate association

Dinani pointed to the provincial NDP, who came to power last summer on promises to cool Metro Vancouver’s housing market.

“They’ve bumped up the tax to foreign buyers, they’ve introduced the speculation tax,” said Dinani.

Mayoral elections across the province, particularly with mostly newcomers taking the reigns in Metro Vancouver, could also see a shift in municipal housing policy.

Dinani cited Kennedy Stewart’s promises to put forward stricter measures to get a grip on that city’s housing woes.

But despite the slowdown, Dinani doesn’t think recent buyers should be worried.

“If we look at history… every [recent] dip was very short lived, usually six to nine months,” he said.

“I believe if you buy real estate today and have a longterm time horizon, it will be a fruitful investment.”

Dinani acknowledged the Bank of Canada’s recent interest rate hike could affect that, but said that the shift to a buyers’ market was probably healthy overall.

“If you were looking to buy a condo in the first quarter of 2018, you were competing sometimes against 10-12 offers,” he said.

“Now, you can probably approach that same property being the only offer on the table and… probably negotiating off the price a little bit instead of feeling like your back is off the wall.”


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Ridge RCMP officer chases down theft suspect

Allegedly caught in the act of theft from a vehicle

Ridge Meadows RCMP issue fines, seize pot, under new Cannabis Act

Unlawful supply of cannabis offence for over 30 grams

UPDATE: Pedestrian hit by train in Maple Ridge

Emergency responders on tracks along River Road

Left makes Canada’s Top 100 Employers 2019

Annual competition determines which employers offer exceptional workplaces for their employees

Gas prices in Metro Vancouver to drop six cents

But a ‘volatile’ market could lead to increases in the coming weeks

BREAKING: Sagmoen denied bail

Bail for Curtis Wayne Sagmoen was denied, to uproarious applause by rally supporters.

Metro Vancouver mayors face tough decision on SkyTrain versus light rail

Surrey’s mayor is pushing for SkyTrain, saying he can keep costs low

Expect no quick end to Canada-wide cannabis shortages, producers warn

Provinces including British Columbia, Alberta have all reported varying degrees of shortages

Want to buy your first home? Move to Kamloops or Prince George

Kamloops, Prince George, Campbell River and Langford are the only other markets in the study without gaps between required and actual income in owning a home.

Seniors in care homes may not get referendum ballots in the mail: Seniors Advocate

Voters list was established in May 2017, so if they moved into a care home since then….

Feds give $2 million for anti-extremism programs in B.C.

Public Safety Minister Mike Farnworth said supporting efforts locally is key to prevention

Should the legal age for cannabis be increased to 21?

B.C. residents have a more mellow attitude to the age limit for pot – but 23 per cent want the legal age increased

Expect ride hailing in B.C. by 2020, Premier Horgan says

Taxi-style insurance option needed for part-time drivers

B.C. on track to record same number of overdose deaths as last year

128 people died of overdoses in September, bringing the total to more than 1,100 so far in 2018

Most Read