Vancouver, BC – May 31, 2018. The British Columbia Real Estate Association (BCREA) released its 2018 Second Quarter Housing Forecast today.


Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 9 per cent to 94,200 units this year, after posting 103,700 unit sales in 2017. MLS® residential sales are forecast to remain relatively unchanged in 2019, albeit down 0.2 per cent to 94,000 units.


Housing demand is expected to remain above the 10-year average of 84,800 units into 2020.

“The housing market continues to be supported by a strong economy,” said Cameron Muir, BCREA Chief Economist. “However, slower economic growth is expected over the next two years as the economy is nearing full employment and consumers have stepped back from their 2017 spending spree.

 

“Demographics will play a key role in the housing market over the next few years,” added Muir, “as growth in the adult-aged population is bolstered by immigration and the massive millennial generation enters its household forming years.”


Muir notes there are, however, significant headwinds in the housing market. “Rising mortgage interest rates will further erode affordability and purchasing power, with the effect being exacerbated by an already high price level. The legacy of tougher mortgage qualifications for conventional mortgagors will be a reduction of their purchasing power by up to 20 per cent, and the provincial government’s expansion of the foreign buyer tax and several other policies aimed at taxing wealth is sending a negative signal to the market and likely diverting investment elsewhere.”


The combination of slowing housing demand and rising new home completions is expected to trend most BC markets toward balanced conditions this year, and lead to less upward pressure on home prices.


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BCREA ECONOMICS NOW


Bank of Canada Interest Rate Announcement - May 30, 2018

The Bank of Canada decided to leave the target for the overnight policy rate unchanged at 1.25 per cent this morning. In the statement accompanying the decision, the Bank noted that inflation has been close to its two per cent target and will likely be higher in the near term than was previously forecast due to higher gasoline prices. Economic growth in the first quarter was stronger than expected due to rising exports and business investment, which helped to offset a B20 induced softening in housing activity.  Overall, the Bank's view is that higher interest rates will be warranted to keep inflation near its target.
   
Although the Bank held steady today, with inflation rising to the Bank's two per cent target and the Canadian economy operating at or near capacity, interest rates are very likely headed higher,  perhaps at the Bank's next meeting in July.  That will translate to higher mortgage rates which, combined with the erosion of purchasing power from the mortgage stress test, will continue to temper housing demand in 2018.

For more information, please contact: 

Cameron Muir

Brendon Ogmundson

Chief Economist

Deputy Chief Economist

Direct: 604.742.2780

Direct: 604.742.2796

Mobile: 778.229.1884

Mobile: 604.505.6793

Email: cmuir@bcrea.bc.ca

Email: bogmundson@bcrea.bc.ca



The British Columbia Real Estate Association (BCREA) is the professional association for more than 20,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.


Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

 

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Please visit our Open House at 206 2588 ALDER ST in Vancouver.

Open House on Friday, May 25, 2018 5:00PM - 6:00PM

Welcome Home to Bollert Place which boasts Heritage status. Its many special features look and feel like a character home. 96 Walkscore, steps to transportation, shops, restaurants, theatre, VGH, Granville Island and the seawall. Located in desirable Fairview/S. Granville neighbourhood. This bright corner one bedroom & den is in move in condition – freshly painted, new fridge, stove, microwave, kitchen cabinet doors & hinges. This charming suite features laminate floors, cozy gas f/p and boasts windows on three sides. The south facing den could be a second bedroom & overlooks the garden. Common courtyard for bbq. 2 pets welcomed. Underground parking, locker and bike storage. Pro-active strata. OPEN May 25th 5-6pm & 26th 1:30-3:30.

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Please visit our Open House at 206 2588 ALDER ST in Vancouver.

Open House on Saturday, May 26, 2018 1:30PM - 3:30PM

Welcome Home to Bollert Place which boasts Heritage status. Its many special features look and feel like a character home. 96 Walkscore, steps to transportation, shops, restaurants, theatre, VGH, Granville Island and the seawall. Located in desirable Fairview/S. Granville neighbourhood. This bright corner one bedroom & den is in move in condition – freshly painted, new fridge, stove, microwave, kitchen cabinet doors & hinges. This charming suite features laminate floors, cozy gas f/p and boasts windows on three sides. The south facing den could be a second bedroom & overlooks the garden. Common courtyard for bbq. 2 pets welcomed. Underground parking, locker and bike storage. Pro-active strata. OPEN May 25th 5-6pm & 26th 1:30-3:30.

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New Consumer Protection Rules:  Information for Consumers

 

The Superintendent of Real Estate has announced new rules for real estate licensees that will change the way a real estate professional can provide service to consumers. Under the new rules, real estate licensees will be required to:

  • give consumers more information about commissions and fees —  in particular, how the commission is to be divided between a listing brokerage and cooperating brokerage, or when there is no cooperating brokerage, retained by the listing brokerage;
  • before working with consumers, inform them of the duties and responsibilities owed to clients and unrepresented parties;  
  • inform unrepresented consumers of the risks of dealing with a licensee who is representing another party to the transaction;
  • only work for either the buyer or the seller in a single real estate transaction. Under the new Rules, dual agency, the practice of acting on behalf of both the buyer and seller on the same trade, will be prohibited except in extremely limited circumstances.

The new rules will come into effect on June 15, 2018.

The Council has developed answers to a number of questions that real estate consumers may have about these new Rules.

If  you have questions that aren’t addressed in the Frequently Asked Questions below, let us know by submitting your question using our online form — we will post responses to the questions we receive on this FAQ in the weeks ahead. 

 

For more information:

 


Show/Hide Answer Open All

Frequently Asked Questions about BC’s new Real Estate Consumer Protection Rules

 

Disclosure of representation 

The Superintendent of Real Estate has created a new rule that requires a licensee to disclose to a consumer, at the outset of their dealings:

  • whether the licensee will be able to represent the consumer as a client,
  • what the duties and responsibilities of licensees are to clients and unrepresented parties, and
  • how to file a complaint about a licensee’s conduct.

This new disclosure requirement is intended to ensure that consumers are not confused or misled about whether a licensee they are dealing with is going to be representing their interests in the transaction.

The Council is developing a new form, provisionally called the Disclosure of Representation in Trading Services form, that clearly outlines for consumers the services that a real estate licensee can provide. This form, along with other information for consumers, will be made available before the new Rules take effect on June 15, 2018.

 

Show/Hide AnswerCan I still represent myself in a real estate transaction?

Show/Hide AnswerWhen do I need to decide whether to be represented or not?

 

Dual Agency

The Superintendent of Real Estate has created new Rules that generally prohibit the practice of dual agency, except in the rarest of circumstances. Dual agency refers to when a licensee represents, in a single transaction, two or more clients whose interests are in conflict. For example, a property seller and a prospective buyer for that property.

 

Show/Hide AnswerWhy has dual agency been restricted?

Show/Hide AnswerCan I make an offer on a property my licensee has listed?


posted May 12, 2018

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.