(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

‘Kim’s Convenience’ keeps Surrey actor busy when not working as church pastor in Guildford

Award-nominated James Yi will again play shop owner at Surrey Arts Centre next winter

Olympic softball qualifier gets $150K boost from provincial government

2019 Americas Qualifier to be held in South Surrey from Aug. 25-Sept. 1

South Surrey woman excited to ‘tell the world Canada is open for business’

Aashina Singh aims to promote Metro Vancouver companies in Singapore and Malaysia

‘DebuTheatre’ debuts at Surrey Little Theatre

One-acts run at Cloverdale community theatre until Saturday

VIDEO: Wet weather kicks off Lower Mainland toad migration

Thousands of small western toads were making the trek from pond to woods

Gas price inquiry questions Trans Mountain capacity, company denies collusion

The first of up to four days of oral hearings in the inquiry continue in Vancouver

Serious police incident unfolding at Sts’ailes near Agassiz

Small reserve near Agassiz surrounded by police vehicles, helicopter, ERT

‘Benzos’ and fentanyl a deadly cocktail causing a growing concern on B.C. streets

Overdoses caused by benzodiazepines can’t be reversed with opioid-overdose antidote naloxone

RCMP release sketch of suspect in SFU assault, appeal to witnesses who helped woman

The RCMP want to talk to two women who helped the victim after she got to the parking lot

Will you be celebrating national hotdog day with any of these crazy flavours?

The popularity of hotdogs spans generations, cultures

Former home of accused Penticton shooter vandalized

Ex-wife of man who is accused of murdering four people had her house vandalized

Survivor of near-drowning in B.C. lake viewing life through new eyes

“If I died that day, the baby wouldn’t know his dad,” said 31-year-old Mariano Santander-Melo.

‘Beyond the call’: Teen in police custody gets birthday surprise by B.C. Mountie

Unusual celebration started when Staff Sgt. Paul Vadik went to visit the teen in his Coquitlam cell

Most Read