42.5% sales decline signals hard times ahead

by Neil Sharma on 07 Dec 2018

Last month’s homes sales in Vancouver were the lowest in a decade, and down 42.5% from exactly a year earlier.

The 1,608 home sales in Metro Vancouver are worrying, but there were earlier indications that the city’s housing market was decelerating, says Adil Dinani, a sales representative with Royal LePage in Vancouver.

“Before, there was a divergence in the market,” he said. “The single-family detached market was slower and the condo market carried the balance, but that’s come down as well. The condo market eight to 12 months ago was on fire, but now it’s totally shifted. Most segments of the market are in buyers’ territory. Policy measures put forth—the 20% foreign buyer tax, the OSFI [Office of the Superintendent of Financial Institutions] rules and the vacancy and speculation tax introduced by the NDP—have played major roles.”

Interest rate hikes are mounting and conspiring to make homeownership even shakier for some of the region’s residents.

According to Ron Antalek, a REMAX sales agent, Vancouver’s troubles began in the summer and have finally reached an ugly denouement. While he concurs that B-20, the mortgage stress test implemented by OSFI, has done its part to erode Vancouver’s once sizzling real estate market, he says the provincial NDP has made it its mission to quell the once-white-hot activity in order to make housing affordable.

“To suggest affordable housing is created by dropping the market, I disagree,” he said. “The government should have created incentives to the development community that would create affordable housing and rental units. It could have been done in a better way.

“What’s happening is in our province with the NDP’s policies of an increased foreign buyer tax and an empty housing tax has definitely affected the market, especially Vancouver. It has adversely affected the investor community.”


Post a Comment

Most Trending News

June 11-13 conference teaches agents how to be top-10 in their city

Are you a real estate agent looking to improve your marketing tactics? Learn more during this virtual conference hosted by Craig Proctor from June 11-13.

Read More
The best place to buy a rental property in Canada: 2021

You want the biggest bang for your buck so here are the best places in Canada to buy a rental property, and the best types of properties (including vacation homes!).

Read More
Strategies to Predictably, Reliably Grow Your Real Estate Business

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More