What a present on Canada’s birthday– the introduction of the HST. It will probably pop the bubble that has left many investors and homeowners way richer than before. And then, just to kick the housing market while it’s down, the Bank of Canada intends to increase interest rates. Ugh.
But, let’s focus on the positive for the time being:
The good news is that new construction is on the rise in the province, with the seasonally adjusted annual rate of housing starts reaching 186,300 units in January, a 5.8-per-cent increase from December. The Vancouver Sun
While this IS good news, economists also predict that buyers trying to purchase before the introduction of the HST are somewhat responsible for the increase.
But don’t despair investors! Projections for 2010 indicate that resale prices will go up 4.2% in 2010 and decline 1.8% in 2011 leaving a tidy spread of profit. On the flip side, that also means that prospective buyers looking forward to more affordable housing in the Vancouver area are going to be disappointed. Can’t please everyone!