With new impending mortgage-stress regulations coming to British Columbia this January, it is important to discuss the future of Vancouver’s housing market and what is going on in Canada’s real estate markets lately.
From last September to this September, Vancouver’s volume of sales increased 7%, an increase that is slower than usual, but still a significant increase. Comparing this October to last October, sales increased by 35%. This large increase is accompanied by sales 15% higher than the 10-year average for October.
What does this mean for Vancouver’s real estate market? Well, it shows that Vancouver’s market has readjusted to the Foreign Buyer’s Tax implemented last year. Prices had initially slowed, but with a strong market, locals have continued to compete for properties; hence the markets readjusts and prices/sales continue to increase.
As for Canada as a whole, Toronto’s housing market has begun to slow after similar proposals to BC were implemented in Ontario, but judging from the economic prowess and desirability to live in Toronto, I wouldn’t be surprised if in the near future the market readjusts the same as Vancouver’s.
With new mortgage regulations and a rise in interest-rates coming to Canada it is a good sign for Canada’s economy. The government clearly has faith that the Canadian economy is on the rise and that the housing market will become more stable with new regulation. When the new regulations become active it will be an interesting time to observe how Vancouver & Toronto’s housing markets will react, hopefully expecting an increase in stability and affordability.