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

Kelowna RCMP seek witnesses in pedestrian hit and run

The incident occurred around 4:00 p.m. on Dec. 4

City of Kelowna proposes 3.9 per cent tax increase for 2020 budget

The City of Kelowna’s budget deliberations occur next Thursday

Two gymnastics coaches raise money for Kelowna charity

Two coaches from Kelowna Gymnastix want to raise $5,000 for Her International

Parts of Central Okanagan will light up this weekend for holiday season

West Kelowna light up takes place Friday, Rutland light up to occur Sunday

Kelowna events honour women killed at l’École Polytechnique 30 years ago

Dec. 6 is also the National Day of Remembrance and Action on Violence Against Women

Cat and dog die in house fire in Rutland

The house is located 195 Valleyview Road in Rutland

Bob Ross is coming to Penticton in 2020

32 of the late painter and TV celebrity’s works will be on display at the Penticton Art Gallery

Residents in B.C. city could face 133% tax hike in ‘worst case’ lawsuit outcome: report

An average home could see a tax increase of $2,164 in one year

Bird populations significantly declining around Revelstoke says Parks Canada

Out of the mountain national parks, bird populations near Revelstoke are in the worst shape

Interior Health finds Penticton’s fatal overdose rate ‘alarming’

The rate has been consistenly increasing since 2015

WATCH: Diehard Vernon Winter Carnival goers line up for tickets

Susan O’Brien was the first in line at 6:45 a.m. Friday

B.C. Transit finds 28 used fareboxes online, saves $300,000

‘Someone joked maybe we can buy used fareboxes on eBay,’ CEO says

Year in jail for ex-Vernon Judo coach for child porn

Bryan McLachlan pleaded guilty to possessing and distributing child pornography

Many of Canada’s working poor can’t afford lawyers, don’t qualify for legal aid

One lawyer says many people earn too much to qualify for legal aid, but not enough to really live on

Most Read