(Black Press Media files)

B.C.’s skyrocketing real estate market will ‘correct’ in 2019: analyst

Housing prices in Vancouver are set to rise just 0.6 per cent

After years of skyrocketing real estate prices in much of urban B.C., things are finally set to cool off in the new year.

A 2019 market survey forecast from Royal LePage suggests that house prices are in the Lower Mainland will rise by just 0.6 per cent.

Last year’s forecast predicted prices would rise by five per cent.

Next year’s predicted increase would leave houses costing an average of $1.3 million by the end of the year.

READ MORE: Sales drop 41% in Fraser Valley real estate in November

Royal LePage Sterling Realty general manager Randy Ryalls said that the slowdown was a natural correction after a busy few years on the real estate market.

“The volume is down off of those crazy levels where we were selling 5000 properties a month,” Ryalls said.

“This is much more of a normalization of our market than we’ve seen in quite a few years.”

Ryalls said that the mortgage stress test brought in at the start of the year, coupled with the foreign buyers tax and other provincial policies, was helping to calm markets.

But for buyers who thought “the ship had sailed,” Ryalls said 2019 presented a new opportunity.

“The condo and townhouse market has sort of balanced itself out and detached houses are probably firmly in buyer market territory,” he said.

That means there will be opportunities for first-time millennials buyers for the first time in years.

“Where you were having to compete with several other buyers to buy a property in 2016 and 2017, now you have an opportunity to go and be the only buyer on a property and negotiate a pretty good price,” Ryalls said.

“There’s an opportunity for a millennial buyer. Now they can go and not make a decision in five minutes when they walk in the door.”

READ MORE: Vacancies remain low as rents rise in B.C.

But recent buyers shouldn’t despair that they’ve bought a useless property.

B.C. still has “probably the best economy in Canada,” Ryalls noted, and with unemployment remaining low, the real estate market continues to have a strong foundation.

“There’s periods of a lot of growth in terms of prices and then it slips back a little bit,” Ryalls said.

“We’ve gone through a period when we’ve had double digit increases per year and that’s not sustainable and that’s going to correct itself a little bit.”


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Abbotsford family looking for pair of stolen Shih Tzu puppies

Breeder Kate Classon stated that someone stole the pooches from her Abbotsford home on Sept. 21

Open letter urges BC Liberal party to remove Laurie Throness as Chilliwack-Kent candidate

The letter says Throness holds homophobic views and should have no place in government

Chilliwack man pleads guilty to violent assault of elderly man in Abbotsford

Victim, 85, attacked while waiting at bus stop in November 2019

Staff shortages plague Mission Institution following recovery from COVID-19 outbreak

Guards at 60% of workforce; inmates suffer daily with lockdown, mental health issues

Conair in Abbotsford donates $22,000 to Crystal Gala Foundation

Company challenges others to support foundation during COVID-19 pandemic

B.C. starts October with 82 more positive COVID-19 tests

10,899 tests a record for a single day, Bonnie Henry says

Missing mushroom picker in northern B.C. found dead

Witset elder found deceased in Price Creek area more than two weeks after he vanished

BC Greens focus on long-term care reform in first platform promise

Greens have promised to move away from the for-profit care home model

‘It’s a nightmare’: Northern B.C. family desperate after living in hotel for a year

Renae Podgorney says because of a lack of rentals, she’s now applying to rent a one-bedroom unit

Costs climb to more than $100K for BC SPCA to care for animals in B.C. farm seizure

Eight puppies, of the 97 animals seized have now died from parvovirus enteritis

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Chilliwack man, 31, in critical condition after altercation at Langley university

RCMP received a report of an ‘agitated man’ on TWU campus

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. VOTES 2020: Wilkinson to stop 24-hour camping in city parks

Ban on ‘unsafe roadside panhandling’ to be enforced

Most Read