Vancouver Housing Market at Risk, A Sign for the Rest of Canada?
In a report to CBC Gregor Robertson says recent reports and recommendations from banks, organizations, real estate boards and economists has made it clear to him that it's time to deal with Vancouver's sky-rocketing real estate prices or the city's economy could suffer.
On Sunday he released a statement amplifying his support for a house flipping tax as a measure to reduce speculation and a luxury sales tax to help, "rein in the excesses of Vancouver's housing market."
"First and foremost, housing needs to be for homes, not just treated as a commodity," said the statement.
Robertson has found convergence from multiple sources, all calling for something to be done about the state of prices for housing. This week the price tags for detached houses were shown to have increased 37 per cent since last year according to Real Estate Board of Greater Vancouver.
"These trends are not sustainable and we need to be wide awake to the risks they pose to the stability of our economy, let alone the impact they have in pushing local residents, especially young people, families, and seniors, out of our neighborhoods," said Robertson.
There has been speculation over the same problem rising in the Toronto housing market as well. Buyers should be reminded that the value of a home can drop at any moments notice. Prices cannot rise too fast, it is simply not practical.
OECD warns of ‘rapidly rising housing prices’ in Canada as Scotia takes ‘foot off the gas’ on mortgage growth in hottest markets. Concerns over Canada’s overheated housing market are not new, but they are growing.