Vancouver has been well-known over the past few years for having a high priced housing market.
In fact, for quite some time Vancouver had the highest real estate prices within the region, where a two-story house averaged around $1.6 million.
However, as new mortgage restrictions are applied to applications and new taxes are put into place, Vancouver is seeing a price reduction in the real estate market.
These restrictions are affecting the Canadian market as a whole.
Chief Executive of Royal LePage Real Estates Services, Royal LePage said:
“While efforts to address deteriorating affordability in Ontario and B.C.’s largest metropolitan areas are well-intentioned, too many new taxes and regulations, by too many levels of government, introduced within such a short timeline and with perceivably little research and consultation, have caused confusion and triggered drops in consumer confidence, risking the long-term health of Canada’s housing market.”
Vancouver is also expected to experience a fifteen percent additional property transfer tax on foreign owners and a one percent tax on vacant homes based on their value, which was instituted on January 1st, 2017.
All of these changes are factoring into why the values of homes are decreasing.
The cost of homes in the Greater Vancouver area are still predicted to be the highest in the country in the upcoming year, but the Lower Mainland of Vancouver in British Columbia are going to drop in 2017 without a doubt.
The modest home price drop in the Lower Mainland of Vancouver is expected to provide a much-needed relief to potential buyers in that area.
The hope is that the price decrease will encourage people to purchase homes again.
If you have recently purchased a home in the Vancouver area and need help making a move, contact Highland Moving Co.