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STOREYS Custom Studio
It’s been a pretty hectic year for real estate in Vancouver – and 2023 could be just as much.
Interest rates are expected to rise further for at least part of the year, and legislative changes, such as those focused on condominium rentals, may or may not impact the market.
“It was truly a year of transition, starting quickly from 2021 with a massive amount of transactions,” said Kevin O’Toolea Vancouver-based broker-manager at Sotheby’s International Realty Canada. “From that point on, we certainly saw a downturn, which was really consistent with rising interest rates and rising inflation.”
O’Toole says the market downturn has allowed those working in the industry to catch their breath, and allowed them to shift from reacting to the “frenzied” amount of trades to having more time to be proactive. with such things as marketing and training pursuit.
Several real estate-focused legislative changes will take effect in 2023, which means experts like O’Toole will be called upon to guide these changes, along with already turbulent market conditions.
One such change is to the Province of British Columbia’s Strata Property Act, which ends all rental bans in condominiums (excluding short-term rentals like Airbnb), as well as age limits for condominiums (excluding those that benefit the elderly) . These changes have been proposed by Prime Minister David Eby in November shortly after he was sworn in, and have already entered into force, as the change is an amendment rather than an entirely new bill.
O’Toole says he knows some people in condominiums who are upset about the change, and the change will likely succeed in increasing the number of rental units in a province that desperately needs it — but it probably won’t. no major impact on the market.
“It might affect decisions, but I don’t think it will fundamentally change the market,” he said.
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In addition to the condominium rental changes, which will also come into effect in January, the new cooling-off periodfirst announced in July.
O’Toole notes that contracts can read differently and that transactions can involve a two-step deposit – one during offer/acceptance and one during the current transaction – but points out that many transactions already have clauses that extend beyond three days.
“I don’t think it really makes a big difference, for buyers or sellers,” he said.
When asked what he would advise those looking to be active in the market, O’Toole emphasizes ongoing communication with your real estate agent to get an up-to-date idea of market conditions and to not not worry about having to make a split-second decision (as many had to in a highly competitive 2021).
“If you’re looking to flip, now might not be the right time, but if you’re looking for your home for the next five to 10 years, go for it,” O’Toole said. “We’ve had a tumultuous few years, but hopefully the world will calm down in 2023.”
This article was produced in partnership with STOREYS Custom Studio.
Written by
STOREYS Custom Studio
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