Harbourwalk condos.Vancouver housing prices will fall by more than 10% in the future? In the latest news for would-be buyers considering buying in Vancouver, Marion, chief economist and strategist at the National Bank of Canada, believes that the Vancouver real estate market has now entered a period of adjustment. Please Visit: Harbourwalk condos to Get Your VVIP Registration Today!
after a period of adjustment, house prices are expected to fall by at least 10% overall.
Speaking at the Canadian Economic Conference in New York on Tuesday, Marion pointed out that a series of measures and policies currently introduced by the provincial government of BC will lead to a “fall in house prices in Vancouver.” He agreed with the transfer tax for foreigners and said that “this will help the Vancouver real estate market enter a healthy period of adjustment”.
Whether the Pacific Rim city can withstand the impact of the property market has recently become a new focus of public opinion among the relevant groups, as record mortgage rates and an increasingly scarce supply of land are driving house prices to record highs in the Vancouver area. The BC provincial government is now playing the hand of overseas buyers’ tax, and a series of measures to be introduced are clearly aimed at controlling the strong property market.
Emanuella Enenajor, senior Canadian and US economist at Merrill Lynch, said long-term measures such as low interest rates would help Canada avoid economic collapse, but specific government measures and regulations would be needed to reduce the risk of collapse in certain areas. “simply taxing some groups in the city will indirectly boost the real estate market in other areas, such as Toronto,” she said. I think how to balance the national real estate market is what the federal government needs to consider. ” Now the government is trying to put a lid on free house prices. After a transfer tax on 15% of overseas buyers, the volume of real estate transactions in Vancouver fell by more than 26% in August, while average home prices in the Toronto area rose 18% in August.
The biggest problem for Canada today is the lack of motivation to maintain long-term economic growth. Ms Alenaja added that she was more confident that the central bank would cut interest rates in the future to boost market activity than an increase in interest rates. The current economic data are not enough to reflect the real situation of the national economy, and there are still contradictions in it. For example, the rise in unemployment in Canada in August shows that the development of the labor market is not optimistic, but the national economy grew at its fastest pace in the past three years in June.
Dawn Desjardins, chief economist of RBC, pointed out that for the Vancouver real estate market, the risk of collapse is closely linked to Canada’s national economic development. “We do not think that house prices will continue to grow by more than 30% of current prices in the future, and unless there are major changes in the employment or economic market, it will be very difficult for us to see a large-scale collapse of the real estate market,” she pointed out.