Many people are watching the real estate market closely in Metro Vancouver. This red-hot market has seen prices soar, and the investment potential has attracted international attention. Government on different levels have stepped in in attempts to rein in foreign buyers and keep prices at a manageable level.
Supply and Demand and Stress Test Strain Market
Recent reports have projected that builders in BC are just now starting to produce enough homes to narrow the supply gap in 2018, but with a booming population it will be interesting to see just how much the supply chain loosens in the region.
It is likely that there will be more for buyers to choose from once the new mortgage regulations take effect in January as projects show as many buyers could be choked out of the market because they are unable to meet the requirements of the incoming stress test policy. All home buyers will be subject to the stress test next year, not just those seeking insured mortgages.
Affordable Housing is a Priority for the Federal Government
Ottawa has also announced recently that they will be investing heavily in social housing in the coming years, and it is likely the need for these subsidized accommodations will continue to be a strain for Surrey and other booming cities throughout Metro Vancouver.
With all the happenings with local real estate one may think there must be a price break coming down the pipeline. Unfortunately, the projection is just the opposite. Economists believe home prices will continue to rise throughout it all.