{"id":11496,"date":"2017-04-19T12:03:22","date_gmt":"2017-04-19T16:03:22","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=11496"},"modified":"2017-04-19T12:53:14","modified_gmt":"2017-04-19T16:53:14","slug":"market-whiplash-in-store-for-vancouver-royal-lepage","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/market-whiplash-in-store-for-vancouver-royal-lepage\/","title":{"rendered":"\u201cMarket Whiplash\u201d In Store for Vancouver: Royal LePage"},"content":{"rendered":"

The recent slew of measures designed to cool the Vancouver real estate market<\/a> continue to be controversial \u2013 and Royal LePage President and CEO Phil Soper hasn\u2019t been shy to voice his thoughts on whether they\u2019ve done more harm than good.<\/p>\n

He states the \u201cseries of uncoordinated moves by all three levels of government\u201d have mostly confused consumers, leading to their hesitation to list their homes, and are the real reason behind the widening gap between conditions in the west coast city and Toronto. The changes, which have been introduced\u00a0by both the provincial and municipal governments, include foreign buyer and empty homes taxes.<\/p>\n

\u201cFor the first time in several years, real estate markets in Vancouver and Toronto are headed in opposite directions,\u201d he states in Royal LePage\u2019s quarterly House Price Survey<\/a>.<\/p>\n

\u201cWith the housing shortage becoming more acute, Toronto easily stepped forward to assume the title of Canada\u2019s most overheated real estate market.\u201d<\/p>\n

Foreign Buyer Tax was Misguided: Soper<\/h2>\n

The report is especially scathing in regards to the 15% tax levied on the home purchases of foreign buyers<\/a>, a surprise move implemented in August 2016, and has since led to double-digit declines in B.C. home sales.<\/p>\n

\u201cThe principal victims of the B.C. government\u2019s foreign buyer tax were Canadians who had planned to sell or buy a home and were frightened away by unsubstantiated rhetoric which the Chinese were entirely to blame for Vancouver\u2019s housing shortage,\u201d the report states, adding that the region may be in for \u201cmarket whiplash\u201d, as a resulting six month\u2019s-worth of pent-up demand spurs buyers and sellers to finally take action.<\/p>\n

\u201cThe reality is that as much as 90 per cent of the housing activity that disappeared overnight in the Lower Mainland after the tax was introduced was from Canadian residents, not foreign investors. Home buyers are waking up to this reality and may be ready to rush back into the market.\u201d<\/p>\n

Already, prices have rebounded to just under $1.2 million in the first quarter in Metro Vancouver, a 12.3% year-over-year increase.<\/p>\n

\n

12.3 per cent year-over-year to nearly $1.2 million in the first three months of 2017, according to a report from Royal LePage released Tuesday.<\/p>\n<\/div>\n

Warnings Against Toronto Market Mistakes<\/h2>\n

Concerns over runaway demand and sales growth in Ontario was also hotly discussed, as the province outpaced activity in all other markets. Rampant demand has spilled over from the Greater Toronto Area and is now impacting the whole \u201cGolden Horseshoe\u201d, driving prices as far as the Windsor and London. In fact, Ontario accounts for nearly half of Canada\u2019s total aggregate price increase in the first quarter; other regions saw an average of 6.4% growth, compared to 20% in markets within a two-hour drive radius of Toronto, to an average of $759,241.<\/p>\n

The scorching activity has drawn attention from all levels of government, prompting the \u201cbig three\u201d \u2013 Toronto mayor John Tory, provincial finance minister Charles Sousa and federal finance minister Bill Morneau \u2013 to meet face to face this week to discuss housing affordability solutions. Sousa has been particularly proactive, announcing a suite of 10 measures<\/a> to come in the upcoming provincial budget on April 27.<\/p>\n

Related Read: Ontario Government to Consider Foreign Buyer Tax<\/a><\/strong><\/p>\n

It\u2019s a coordinated approach that should have been undertaken when assessing Vancouver\u2019s market challenges, Soper alludes, and a rushed solution could spell disaster for Toronto. \u201cThe hasty introduction of new real estate-related regulations or taxes in Ontario, in absence of data and analysis to support these policy moves, could lead to sharp price correction, impacting not only household wealth, but damaging the broader Canadian economy as well,\u201d he says.<\/p>\n

\u201cWe applaud the Canadian government\u2019s federal budget commitment to partner with the provinces and municipalities to create a national housing strategy.\u201d<\/p>\n

Balanced Conditions in Other Markets<\/h2>\n

Outside of the Toronto and Vancouver markets, Canada\u2019s housing landscape is relatively drama-free.<\/p>\n

According to Soper:\u00a0\u201cElsewhere in the country, housing markets are in balance. Fairly-priced homes are selling within a reasonable amount of time. Bidding wars are rare and buyers have an opportunity to make conditional offers.\u201d<\/p>\n

He points to improving conditions in Alberta, as oil prices strengthen, forecasting it to be the fastest-growing province, with home prices to rise 0.6% in Calgary to an average of $461,635m and 0.3% to $381,733 in Edmonton.<\/p>\n

Quebec is also anticipated to be an \u201ceconomic star\u201d, due to robust business investment, and housing growth slated for string mid-single digit appreciation.<\/p>\n

For the country as a whole, the Royal LePage National House Price Composite finds national home prices are up 12.6% to $574,575. Two-storey homes saw the greatest growth at 13.9%, to an average of $681,728, bungalows up 10.9% to $490,018, and condos up 8.9% to $373,768.<\/p>\n","protected":false},"excerpt":{"rendered":"

The recent slew of measures designed to cool the Vancouver real estate market continue to be controversial \u2013 and Royal LePage President and CEO Phil Soper hasn\u2019t been shy to voice his thoughts on whether they\u2019ve done more harm than good. He states the \u201cseries of uncoordinated moves by all three levels of government\u201d have […]<\/p>\n","protected":false},"author":39,"featured_media":11498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":""},"categories":[33,587],"tags":[],"class_list":["post-11496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-news","category-vancouver-real-estate"],"yoast_head":"\n\u201cMarket Whiplash\u201d In Store for Vancouver: Royal LePage | Zoocasa<\/title>\n<meta name=\"description\" content=\"The Vancouver house market is set to experience market whiplash, according to the recent quarterly report released by Royal LePage.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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