(Black Press Media files)

(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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Gwen Spencer Hethey is one of four athletes being inducted into the Greater Victoria Sports Hall of Fame this year. Here, she is pictured with her mentor Major Frederick Richardson. (Courtesy of Greater Victoria Sports Hall of Fame)
Four new names added to Greater Victoria Sports Hall of Fame

Matt Pettinger, Gwen Spencer Hethey, Peter Lawless and Roger Skillings being inducted

The District of Saanich is accepting nominations for the 2021 Environmental Awards until June 1 at 4 p.m. (Devon Bidal/News Staff)
Nominations now open for Saanich’s 21st annual Environmental Awards

Awards recognize individuals and organizations making Saanich more sustainable

Rotary Club of Victoria-Harbourside president Angus Macpherson visited the Wear2Start Society boutique in Victoria to present a cheque to the society’s vice-president Alessandra Ringstad (left) and president Angela Mangiacasale. (Courtesy of Wear2Start)
Rotary club donates over $11,000 to Greater Victoria non-profit for women

Wear2Start Society provides clothing for women in need

Adrienne Rogers (LPN) and Tracy McConnell (RN) on the Victoria Hospice Unit. (Photo courtesy of Victoria Hospice)
Victoria Hospice bereavement counsellors dealing with a tsunami of grief

Last year, Victoria Hospice provided end-of-life care to more than 1,000 people

Paddles sit stacked and ready at a rowing regatta on Elk Lake in 2018. (Black Press Media file photo)
Greater Victoria junior girls rowing team nabs first in national Row to Tokyo challenge

Young Victoria City Rowing Club members row more than 2,250 km

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

RCMP are looking for information on an alleged shooting attempt near an elementary school in Smithers March 10. (Phil McLachlan/Capital News/Stock)
UPDATE: Man killed in brazen daylight shooting at Vancouver airport

Details about the police incident are still unknown

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman’s body found in Kootenay National Park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Edmonton Oilers’ Connor McDavid (97) celebrates his 100th point this season with Leon Draisaitl (29) against the Vancouver Canucks during second period NHL action in Edmonton on Saturday, May 8, 2021.THE CANADIAN PRESS/Jason Franson
Edmonton superstar McDavid hits 100-point mark as Oilers edge Canucks 4-3

NHL scoring leader needs just 53 games to reach century mark

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

Most Read