【Copywriting】 Realty Focuz – Real Estate Expert’s 2017 insight Vancouver’s Real Estate
This article is written for https://realtyfocuz.com/(Real Estate Focuses Web Development Company) and shared by Restobox
Real Estate Expert’s 2017 insight: Vancouver’s Real Estate
The recently introduced tax for foreign homebuyers in Vancouver wasn’t an all-out solution for the skyrocketing housing prices in the area. Experts believe that the tax merely pushed the buyers to a sideline where they would wait and watch for the actual impact of the tax on the market and whether the prices actually do drop.
While commenting for RealtyFocuz, Aaron Chen, president of AISA Real Estate Services, a local brokerage firm suggested that if the tax was indeed a nail on the rising rates of homes in Vancouver and the surrounding areas in B.C., the market would have come down to normal by now. But that wasn’t the case.
In July 2015, housing prices in Greater Vancouver saw a surge of more than 30% than the previous year. To cool down the market, the tax was introduced in August 2016 and there was a 4% drop in the market prices that was at its five-month peak. BMO Economics attributes this price decline to the tax that came as a surprise to most in the business.
However, Robert Kavcic, Senior Economist at BMO, believes that the tax introduced by B.C.’s government is limited in several ways. Though the market has seen a drop from the peak prices after the tax was levied, yet there is no indication of how much of a cooling effect will it have and how long will that cooling last.
According to Kavcic, if Vancouver is taken as the standard example of the impact of the tax implementation, then it should be believed that the cooling effect of the tax is only somewhat and the effects are only short term, given that the tax rates remain at the present levels.
In spite of the tax implementation, reports from REBGV show that the average housing price in Vancouver Metro area rose about 5% from January 2017 – April 2017 and came to about $941,000.
According to Chen, this is mainly because of the fact that many affluent foreigners consider Vancouver as an ideal city to live in and a tax won’t deter them. Even after a price boom and tax implementation, the prices are still quite affordable for them.
Recent reports from REBVG show that though the sales in May 2017 declined by 25.7% as compared to April 2016, yet the sales percentage was 4.8% more that a decade’s average for the particular month.
Since there has been no dampening of the demand, prices and sales will continue to surge in the coming months. Chen believes that though prices and sales may have dropped from their peak points, yet the surge is expected to continue in the future.
The resale supply is hardly able to match the rising demands. Only 4,907 listings in Vancouver were added in April 2017 which marks a 20% drop from last year’s stats of the same month.
And since the price of land/development sites is rocketing by the day, cheap housing prices are becoming impossible. Developers have sensed the huge demand which is why over-valued lands are also being acquired by them with no hesitation.
Chen believes that if there is no change in political positions, last year’s remarkable performance may not be repeated this year.
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September 24, 2017