Glut of New Home Supply Coming to Market

[misher]

https://m.huffingtonpost.ca/2019/01/13/h...tiwdkz83gze&utm_campaign=mw_entry_recirc


I think everyone knows that Metro Vancouver is having a ton of developments reaching completion just as sales have fallen drastically. This is being seen across the country.

The above article discusses how we are gambling on whether new immigration will take up this housing, or if we will reach a state of oversupply with many developments sitting unsold or selling for bargain prices (assuming the developer doesn’t go bankrupt).

With the construction and real estate industries making up a large portion of our job industry and GDP what’s happening is going to be a very important outcome.

Basically two ways things could go one of them will result in lower home prices but a weaker economy, and the other will likely maintain home prices (of course we may fall somewhere in the middle).


Even with the fall in sales home prices appear to be remaining resilient so perhaps we will be playing a game of who blinks first https://dailyhive.com/vancouver/royal-lepage-metro-vancouver-housing-report-january-2019


It’s also possible but unlikely the BC NDP will have to take action should the economic outlook and taxes be affected too greatly.