[06.29.2024 - 07.05.2024] Weekly Real Estate Review: Vancouver and Canada Markets

This week, we highlight four key topics: Growing demand boosts rental housing construction; court-ordered sales increase in Vancouver and Fraser Valley; buyer hesitation slows home sales in metro Vancouver; and BC launches portal to prevent bad-faith evictions.

Surge in Rental Housing Construction Amid Growing Demand: RBC Economist

Rental housing construction in Canada has surged, with starts reaching their highest levels in decades, exceeding 80,000 new units annually in 2022 and 2023, according to RBC economist Rachel Battaglia. This trend is expected to continue, driven by high demand, rapid population growth, and supportive policy measures despite challenges like inflation and labor shortages. Housing starts are already up 11% from last year, with anticipated interest rate cuts likely to sustain this growth. However, Battaglia emphasizes that more rental supply is needed to meet the increasing demand and address the severe imbalance causing rent prices to soar.

Rising Court-Ordered Sales Hit Vancouver and Fraser Valley Real Estate

Court-ordered sales are increasingly common in Vancouver and the Fraser Valley, affecting both luxury and modest development projects. High interest rates and declining property values have led to a surge in foreclosures, including prime locations like downtown Vancouver and the Fraser Valley. Notable listings include a 2.26-acre site in Langley for $17.5 million, set for residential development.

Hesitant Buyers Slow Home Sales in Metro Vancouver and Fraser Valley

Despite a recent interest rate cut, home sales in Metro Vancouver and the Fraser Valley remained slow in June 2024. Sales in Greater Vancouver fell by 19.1% from June 2023, with active listings reaching levels not seen since Spring 2019. Similarly, Fraser Valley sales dropped 30% compared to last year, though inventory increased by 41%. Andrew Lis from Greater Vancouver Realtors noted that buyer hesitation and rising listings are balancing the market, while Jeff Chadha from the Fraser Valley Real Estate Board observed stable prices despite increased inventory and slow sales.

BC Government Launches Website to Curb Bad-Faith Evictions

Starting July 18, 2024, the BC government will introduce the BC Landlord Use Web Portal, requiring landlords to register eviction notices for personal occupancy or caretaker use. This new measure aims to prevent "bad-faith" evictions by tracking new tenants and ensuring compliance with compensation rules. Landlords must now provide four months' notice for these evictions, and tenants have 30 days to dispute them. The portal will also help the government monitor eviction patterns and improve services for renters and landlords. Landlords evicting in bad faith may face penalties, including paying displaced tenants 12 months' rent.

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