Vancouver is often recognized as a highly desirable and costly location to reside in within the Canadian context, primarily attributed to its thriving economy, stunning natural environment, and significant cultural heritage. However, fluctuations in the Vancouver housing market may be indirectly or directly influenced by a variety of local factors.
Higher borrowing costs and the housing market in Vancouver
Over an extended period, Vancouver’s housing market has been plagued by a high level of demand and a lack of available homes, resulting in price increases and nurturing a highly competitive atmosphere among prospective buyers. The new mortgage stress test and rate increases by the Bank of Canada have had a notable impact on housing affordability and market activity. The Real Estate Board of Greater Vancouver (REBGV) believes that rising mortgage rates will cause a slowdown in property sales and a leveling of prices. The board discovered that August 2023 sales of single-family homes were 13.8% below the seasonal average for the previous decade. In addition, the average property’s benchmark price fell 0.2% from the previous month to August 2023. The presented data indicates that borrowing costs are exhibiting a degree of volatility not seen in more than a decade. This circumstance has the potential to discourage prospective buyers from entering the market.
The impact of eco-friendly & energy-efficient buildings in Vancouver
Vancouver is the place to be if you’re interested in ecological building policies and practices. The Zero Emissions Building Plan (ZEB) was authorized by the city council in 2016 to eliminate all carbon emissions from new construction by 2030. Vancouver’s increasing trend toward eco-friendly and energy-efficient buildings, which offer numerous benefits to their proprietors and occupants, has boosted property values. Knight Frank discovered that green-rated buildings sell for a premium because they are more appealing to environmentally conscious, health-conscious, and resilient customers. Therefore, the trend toward sustainable, more energy-efficient construction in Vancouver is not only good for the environment, but also for the city’s real estate market.
The effect of the new housing targets on property value
The new housing targets established by the British Columbia government are part of the Housing Supply Act, which aims to increase the supply of dwellings affordable to middle-income earners and reduce the prevalence of housing market speculation. The first municipalities to receive provincial authority to establish housing benchmarks under the act will be those with the highest housing demand and anticipated growth. Incentives will be provided to local governments to modernize their zoning laws and expedite their local development approval procedures in order to achieve the goals. With greater options and incentives for developers, builders, and consumers to create more houses in reasonable price ranges, the new housing targets are expected to have a favorable effect on housing supply and demand.
Buying a property in Vancouver
We trust you found this essay interesting and gained some insight into how recent events in Vancouver might affect property values there. Matin Homes is the only name you need to know if you’re in the market to purchase or sell a house in today’s competitive real estate market in Vancouver. For over a decade, the Greater Vancouver area has been served by Matin Homes, a team of professional and devoted professional realtors. Whether you’re in the market for a new residence, an investment property, or a development opportunity, we have the expertise, connections, and tools to help you realize your real estate dreams.