Home-price correction in Vancouver may be short-lived: Royal LePage

Shutterstock

Home prices have fallen across the Lower Mainland over the past year, but this may soon change, according to a Royal LePage report released April 18.

The introduction of the foreign-buyer tax played a role in the price decreases as the number of homes sold has fallen, but there may be reason to believe this market correction could turn around soon, said Phil Soper, president and CEO of Royal LePage.

“The principal victims of the B.C. government’s foreign-buyer tax were Canadians who had planned to sell or buy a home and were frightened away by unsubstantiated rhetoric in which the Chinese were entirely to blame for Vancouver’s housing shortage,” Soper said. “The reality is that as much as 90% of the housing activity that disappeared overnight in the Lower Mianland after the tax was introduced was from Canadian residents, not foreign investors.

“Homebuyers are waking up to this reality and may be ready to rush back into the market.”

Soper said it is possible that in the next several weeks, “six months of pent-up demand will be unleashed on the market,” which could cause prices to increase to the levels they were before the foreign-buyer tax was introduced last year. At that time, there was already a market slowdown in place due to eroded affordability.

ecrawford@biv.com

@EmmaHampelBIV

comments powered by Disqus

More from Real Estate

Fraser Valley apartment sales break monthly record

‘Wild West’ conditions for attached-home sales prevail in the region

Read Article

Developers densify industrial; Seattle debates foreign-buyer tax

Read Article

NDP steers ICBC property away from possible North Van waterfront sale

Less insurance staff means more lawyers: union vice-president

Read Article

UDI wants regional plan for less single-family zoning

Shortage of new homes blamed for pushing up real estate prices

Read Article

‘High-risk’ borrowers hit by new rules

Number of new CMHC-insured mortgages drops following tightening of regulations

Read Article

Subscribe to our mailing lists

You may withdraw your consent at any time.

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
Business in Vancouver Media Group
303 West 5th Avenue, Vancouver, British Columbia
V5Y 1J6 · Canada
604-688-2398
×