(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.

Just Posted

Temporary Cold Weather Shelter in the works for Revelstoke

The Women’s Shelter Society, BC Housing and the city are working on making it happen

Black bear kills donkey in Revelstoke, put down by RCMP

Conservation Officer says once they attack livestock they are a danger to the public

Alberta woman dies in motorcycle accident in Revelstoke

RCMP say an SUV turned left in front of the motorcycle

High 30 for Revelstoke today

Roads and weather conditions

Balu Pass closed in Glacier National Park

The National Park is east of Revelstoke on Highway 1

VIDEO: Could we BE any more excited? ‘Friends’ fans go crazy for merch

Movie theatres will show select episodes to mark the NBC series’ 25th anniversary

Penticton man sentenced in non-fatal 2017 shooting

Elkena Michael Knauff sentenced to seven and a half months in jail

Bodies of two missing Surrey men found near Ashcroft

Ryan Provencher and Richard Scurr have been missing since July 17

Kamloops RCMP locate and arrest man who fled from police

The 22-year-old male was wanted in relation to a domestic violence investigation

Five hedgehogs quickly adopted after being left at BC SPCA

Lucky new owners picked up their pets from Maple Ridge branch on Aug. 20

COLUMN: Much to enjoy at Ryga Arts Festival

As I learn about George Ryga and his contributions, it is clear why this festival carries his name

Okanagan RCMP superintendent helps with arrest

Vernon Supt. Shawna Baher arrests man for theft; turns out to be suspect in assault and robbery

Kelowna man arrested after allegedly setting blaze near Fire Department

The man was allegedly seen lighting bushes on fire near the Kelowna Fire Department

Most Read