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

Hang glider pilot rescued from Pincushion Mountain

Pilot was able to help guide rescue crews to her location

Town of Oliver receives award for annual financial report

The town’s finance department is being honoured by the GFOA

Penticton Hospital Auxiliary donates to mental health

Canadian Mental Health Association received a $1,000 donation from the Penticton Hospital Auxiliary

Balmy winter forecast for Okanagan-Shuswap

El Niño is anticipated to develop later this winter

Grants for Okanagan youth initiatives available

Project funding of up to $2,000 available for the South and Central Okanagan

VIDEO: Car flies across median, flips over edge of B.C. overpass

Dash cam footage shows vehicle speeding across Brunette Avenue overpass in Coquitlam

Hang glider pilot rescued from Pincushion Mountain

Pilot was able to help guide rescue crews to her location

Thompson Okanagan potential hot spot for lung-cancer-causing gas

Kelowna public forum addresses excessive radon radiation exposure dangers

Indigenous energy summit includes session on pipeline ownership options

Steven Saddleback of the Indian Resource Council says a session will feature presentations on financing models

Japanese grand champion Kisenosato retires from sumo

The 32-year-old Kisenosato was the first Japanese-born wrestler in 19 years to gain promotion to sumo’s highest rank

UPDATE: Accused B.C. high school killer found fit to stand trial

Gabriel Klein is accused in the 2016 stabbing death of Letisha Reimer at Abbotsford Senior Secondary

Right-wing, neo-Nazi, white supremacist groups an increasing concern: Goodale

Ten people died in April 2018 when Alek Minassian allegedly drove a rental van down the busy stretch in Toronto

Canadian stock exchanges to conduct lottery for ‘POT’ ticker amid high demand

The symbol became available after fertilizer Potash Corp. officially merged with Agrium Inc. in early 2018

Most Read