LePage awaits a modification in Vancouver Housing in 2017

The long awaited housing amendment will soon come to an end as it is anticipated that home prices will decline in 2017.  Head of Canada’s largest real estate services company noted that home prices skyrocketed this year in comparison to other years, but although this increase is still expected to continue in the coming year, it will however be at a slower rate.

The drop in home prices in 2017 will come from a drop out of the market by buyers. Many buyers will also lay low, awaiting the supply of new homes. But in an event there is a further demand for homes which many predict will come from first-time buyers as the government intends to introduce an interest free tax, prices will most definitely increase.

Phil Soper, chief executive officer of Royal LePage stated that the difference in home prices compared to the average earnings of households is so great that, Vancouver requires a serious amendment in the housing sector.

Based on data from a unit of Brookfield Real Estate Services Inc, Royal LePage is planning to make a formal project for 2017. The report will also consider the current housing trend to be able to determine what the future holds for the housing sector.

In 2016 the housing market saw buyers drop out of the market as the average single-family house prices climax by 40%. This increase was also a contributing factor for making Vancouver one of the most expensive cities globally.

The government’s intervention to cool down housing prices through the introduction of new policies came after the market began to go through a decline, yet still the policies aided to fasten the decline.

This increase in home prices was also notable as it meant that households spend most of their earnings in the housing market.

However buyers hoping for a further drop in home prices in Vancouver might be in for a mighty shock as the cost of a single-family house has increase more that 20times the average household income in the province.

Although the high housing prices might be attributed to the good quality of life provided by the city, it however does not mean that prices should be rising at 30%  a year.