"The introduction of a 15% tax on foreign national home buyers in Metro Vancouver is expected to accelerate a moderating trend in the market that began earlier in the year," Cameron Muir, BCREA Chief Economist, said. "However, other regions of the province are performing above expectations and at the provincial level, largely offsetting Metro Vancouver's deceleration."
Overall, British Columbia is expected to see 113,000 home sales this year – up 10% year-over-year.
And while many would-be buyers in Vancouver have struggled with affordability, the BCREA predicts a slight respite in the form of moderated demand and an uptick in housing starts.
"While the cyclical nature of housing markets can exact a harsh toll on affordability in the short term, there is some relief for beleaguered home buyers on the horizon,” Muir said. “Housing starts in the province are expected to reach near record levels this year, and the highest amount since 1993. In Metro Vancouver, a record number of homes are now under construction.
“A moderation in housing demand combined with a rising number of both new and resale homes on the market is expected to create more balance and less upward pressure on home prices."
Record starts and price moderation are on the horizon for Vancouver, according to the British Columbia Real Estate Association (BCREA).