CONNECTING THE DOTS – Boom double digit LOSS ~ Real-estate Correction – #mikemartins #2021crash #2021bubble

The forecast for a double-digit price drop in Vancouver’s housing market makes for a nice or nasty surprise for 2017, depending on where you are on the property ladder, but experts say it still won’t make the city affordable.

Royal LePage CEO Phil Soper said prices are headed for double-digit decline in 2017 as buyers drop out of the market.

“Home prices had got so out of whack with the growth in underlying wages and salaries that there had to be a correction,” said Soper. “And it’ll happen in 2017.”

Royal LePage, a unit of Brookfield Real Estate Services, is preparing a formal forecast for release in early January based on data from Brookfield, which also runs the nation’s biggest property valuation company. Those appraisals are used by banks, insurance companies and mortgage underwriters.

“We’re looking at all these trends,” Soper said. “If it’s not double digit, it’ll be close to it.”

The prediction is the latest in a series of reports by real estate groups and financial institutions forecasting a long-awaited correction in Vancouver’s overheated housing market.

Last month, the B.C. Real Estate Association released a report predicting an 8.7 per cent drop in home prices in the region for 2017, with the average MLS price dropping from $1.03 million in 2016 to $940,000 next year.
#mikemartins #2021crash #2021bubble
In October, the National Bank predicted a 20 per cent decline in the price of detached homes in Vancouver, a nine per cent drop for attached homes, and five per cent price decrease for condos.

There’s no question the market is getting buffeted by headwinds, said University of B.C. economist Tom Davidoff.
#mikemartins #2021crash #2021bubble
Recent government interventions such as the 15 per cent foreign homebuyers’ tax and tighter mortgage rules have cooled the market but are not yet fully reflected in prices, Davidoff said. “I think it’s a reasonable guess prices are going to end lower in the year than how it started.”

But he said cheaper housing prices are not a sure thing.

Interest rates, housing supply, foreign demand from China, the exchange rate, as well as the province’s new interest-free loan program for qualified first-time home buyers announced last week, are all factors that could affect real estate prices in Vancouver, even tip the playing field in favour of a price increase.

“I’m not ruling it out,” Davidoff said, noting there is a broad range in the statistical distribution of where prices could be in 2017. Some indicate a decline as low as 50 per cent, while others suggest a jump in prices.

Please watch: “Mike in The Night ! – The Great Reset – #mikeinthenight #talkshow #Thegreatreset”

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