Vancouver’s detached home prices will fall 20 per cent over the next year as the number of homes changing hands in the city continued to plunge, National Bank Financial said in a report on Friday.
“In the case of vehicles of Vancouver, we consider a price correction are now beginning soon ,” National Bank economist Marc Pinsonneault said in research reports.
While a correction of that magnitude sounds dramatic, the bank characterizes it as “moderate” made how high prices have clambered in the city.
In his report, Pinsonneault said Ottawa’s new mortgage regulations will have a cooling effect, but potential impacts” shall not be required to be be over-estimated.”
Indeed, the Vancouver market was already coming off its torrid speed of home sales before the new measures, and even the 15 -per-cent taxation on foreign customers kicked in.
Pinsonneault cites a number of other catalysts for Vancouver’s slide, including prices soaring out of reach for the some customers, new minimum down payment rules for homes over $500,000, and B.C.’s introduction of a three-per-cent taxation on the value of homes sold for more than$ 2 million.
“And eventually, China’s anti-corruption campaign is suspected of crimping the flow of capital from that country,” research reports said.
Across all property characters, National Bank predicts a 10 per cent price correction for Vancouver, with attached homes falling nine per cent and condos drawing back five per cent in the next 12 months.
In toronto real estate, the Toronto market, research reports notes, is now “red hot.”
While Pinsonneault predicts home sales are about to slow in Toronto, the tight availability of listings will limit the slip in prices to just three per cent next year.
Among the catalysts for a Toronto sales slowdown: high prices pushing first-time home buyers out of the market and rising mortgage rates as a consequence of new regulations from Ottawa, he said.
