Home buyers in British Columbia will have little time to change their minds after making an offer to buy in the province’s highly competitive housing market, according to recently proposed amendments to property law. BC Finance Minister Selina Robinson said Monday that creating a rest period for the resale market and newly built homes is necessary to offset the risk in the current overheated real estate market. “British Colombians trying to buy a house in these market conditions are disappointed,” he said. “The status quo only works for people who benefit from an overheated market.” The proposed law will be the first of its kind in Canada, but the county has already introduced a similar, seven-day relaxation period for pre-construction condominium sales. Ms Robinson said the new measure was designed to address concerns that a highly competitive market in some parts of the county is forcing buyers to bid on a home without basic conditions designed to protect their interests. The changes will allow people buying a home more time to consider their offers, secure financing and receive a home inspection, instead of feeling they have to give up on these terms. The real estate association BC criticizes the relaxation period for housing According to the province, more than 70 per cent of bids in BC’s most competitive markets over the past year may have been made unconditionally, which could lead to significant repair and renovation costs or a loss of down payment if its funding buyer fall. . Helene Barton, executive director of the Home Inspectors Association BC, welcomed the change, saying she had heard from broken families rushing to buy out of control, only to find themselves in an unsuitable home with unexpected problems. “Once again BC will lead the country in protecting home buyers by giving them the right to exercise due diligence before buying a home,” Ms Burton told a news conference with the Treasury Secretary. Details – including how long the withdrawal period will last, and what financial penalties will result from withdrawing a bid – are expected to be regulated later this spring. Ms Robinson said she was waiting for a report, based on stakeholder consultation and details on how the existing refrigeration facility would operate, before enacting regulations. The BC Real Estate Association opposed the change, although the group agrees that the current conditions in the housing market are unfounded. When the county first proposed the withdrawal period last November, the union, which represented 24,000 brokers, offered alternatives, including a mandatory “pre-bid period” of at least five working days from the first listing of a property – so that buyers will have time to search the house before bidding. Urban planner Andy Yan, director of The City program at Simon Fraser University, said in an interview that he did not expect the proposed relaxation period to do much to reduce housing prices – an estimate that Robinson agrees with. But he believes it will improve consumer protection. “I think it’s a good idea to protect consumers for the bigger market for most of their lives,” Mr Jan said. The county government has already introduced a series of measures – vacancy tax, speculation tax and foreign buyer tax – designed to mitigate the housing market, but the Metro Vancouver housing market has just reached another record year. for real estate. The reference price for all residential properties rose across the region by 17.3 percent from a year earlier, according to the Greater Vancouver Real Estate Board. At the same time, property values are rising rapidly in smaller communities – the latest BC Assessment estimate shows that property values in 2022 are up more than 40 percent from last year in places like Port Alberni and Ucluelet. Housing Secretary David Abby said he was considering county legislation to bypass municipalities that refuse to approve social housing or near-transit housing, in a bid to increase the supply of affordable housing. Across Canada, the average home price is projected to rise by 14.3 percent in 2022, according to the Canadian Real Estate Association. Record house prices reflect what he calls an unprecedented imbalance in housing supply and demand. We have a weekly newsletter for Western Canada compiled by the heads of our offices in BC and Alberta, providing a comprehensive package of news you need to know about the area and its position on issues facing Canada. Register today.
