Vancouver real estate market beginning downturn that could last 2 years, expert says
A Vancouver real estate and property tax expert believes Vancouver’s real estate market is seeing the start of a downturn that could last up to two years.
The comments come after a prediction from the Royal Bank of Canada that the country, B.C. and Ontario in particular, will see big price drops next year.
"We expect downward price pressure to be more intense in Vancouver, Toronto and other pricey markets," assistant chief economist Robert Hogue wrote in RBC's latest housing outlook.
"By comparison, we expect activity and prices to be more resilient in Alberta, where local markets have more catching up to do following a prolonged slump before the pandemic."
British Columbia's aggregate price is expected to dip 3.8 per cent in 2023, down to about $1.02 million. That's the biggest drop forecast across the country, ahead of the 2.3 per cent decrease anticipated in Ontario.
Paul Sullivan is a B.C. property tax expert and Ryan LLC principal who leads the Business Tax Alliance, a partnership with B.C. Business Improvement Associations. He said the market is changing in an almost perfect storm of circumstances.
“You couldn’t have much worse going on in the world - you got war, we got interest rates, we have a supply chain crisis,” Sullivan said. “It’s kind of set up for a pretty bad scenario.”
Sullivan said even though the price of housing is coming down, it won’t help affordability. Record high inflation and interest rate increases mean buyers can afford less, and it’s getting harder to build.
“We have incredibly high pricing on materials with all the transportation issues and we have a labour shortage,” he said. “The price of delivering new homes to the market is going through the roof right now.”
The RBC forecast predicts “prices peaking this spring as market sentiment sours” then coming down.
“I would disagree with that comment,” Sullivan said. “I think prices spiked already in the last quarter or even end of last year. The demand level has already come down and interest rates are going to exacerbate that.”
As for how long the downturn will last, Sullivan said Vancouver typically has short real estate cycles but believes this time, it will last longer.
“I think values are going to go down for longer than 6 or 12 months this time - we’re going to be in a downtick for maybe as long as two years,” he said.
With files from CTV News Vancouver's Andrew Weichel
CTVNews.ca Top Stories
India's 'most wanted terrorist' arrested on gun charges in Canada
One of India's most wanted terrorists has been arrested and charged in connection with a recent alleged shooting in Ontario.
12-year-old boy charged in stabbing of 11-year-old boy at Edmonton McDonald's
The boy stabbed at a north Edmonton McDonald's last Friday is 11 years old.
What makes walking so great for your health and what else you need to do
Medical experts agree that walking is an easy way to improve physical and mental health, bolster fitness and prevent disease. While it’s not the only sort of exercise people should do, it’s a great first step toward a healthy life.
U.S. Congress hosts second round of UFO hearings
The U.S. government held another UFO hearing on Capitol Hill on Wednesday, the second such hearing in 16 months. This hearing was billed as an attempt by congress to provide a better understanding of what is known about previous sightings of UFOs, also known as UAPs (Unidentified Anomalous Phenomena).
Toronto teenager charged with first-degree murder in Kitchener, Ont. homicide
A Toronto teen has been charged as part of an investigation into Kitchener, Ont.’s first homicide of 2024.
Spy service officer denies threatening Montreal man who was later imprisoned in Sudan
A Canadian Security Intelligence Service official has denied threatening a Montreal man who was later imprisoned and allegedly tortured by authorities in Sudan.
Donald Trump picks Florida Rep. Matt Gaetz to serve as attorney general
President-elect Donald Trump on Wednesday said he will nominate Republican Rep. Matt Gaetz of Florida to serve as his attorney general, putting a loyalist in the role of the nation's top prosecutor.
This Canadian airline will adopt Apple's new AirTag feature to help recover lost baggage. Here's how
Apple announced that a new feature, 'Share Item Location,' will help users locate and recover misplaced items by sharing an AirTag location with third parties including airlines.
Canada bracing for 'tough' talks as Trump's pick calls northern border an 'extreme vulnerability'
The Canadian government is aware it's likely in for 'tough conversations' with U.S. president-elect Donald Trump's administration, after his border czar said there is 'an extreme national security vulnerability' he intends to tackle at the Canada-U.S. border.