The Vancouver real estate expert believes that the Vancouver real estate market is seeing a two-year decline.
This comment comes after the Royal Bank of Canada’s prediction that the country, B.C. and Ontario in particular, will see huge numbers fall next year.
“We expect lower inflationary pressures in Vancouver, Toronto and other expensive markets,” assistant economist Robert Hogue wrote in a recent RBC housing vision.
“By comparison, we expect jobs and inflation in Alberta, where domestic markets have a lot to do following the long-term decline before the epidemic.
The combined price of British Columbia is expected to fall by 3.8 percent by 2023, down to about $ 1.02 million. This is the largest decline in the country, ahead of the 2.3 percent decline expected in Ontario.
Paul Sullivan is a B.C. a local tax expert and principal of Ryan LLC who leads the Business Tax Alliance, in partnership with B.C. Business Development Organizations. He said the market is changing in almost the same conditions.
“You can’t have the worst thing that happens in the world – you have war, we have interest rates, we have a problem with procurement,” Sullivan said. “It is planned for the worst case scenario.”
Sullivan said that although housing prices are falling, it will not help to afford them. Recording high inflation and rising interest rates means that consumers can afford to pay less, and it becomes more difficult to build.
“We have incredibly high prices for all transportation and we have a shortage of staff,” he said. “The price of bringing new homes to the market exceeds the current ceiling.”
RBC forecasts predict that “prices will rise sharply this spring as market capitalization” and fall.
“I do not agree with that comment,” Sullivan said. “I think prices have risen in the last quarter or at the end of last year. The level of demand has already dropped and interest rates will increase. ”
As for how long the decline will last, Sullivan said Vancouver usually has short cycles of houses and apartments but believes that in this case, it will last longer.
“I think prices will go down for more than 6 or 12 months in this case – we will be in trouble for maybe two years,” he said.
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