“With the 15% tax being imposed on offshore buyers, you’re quire likely going to see a lull and we’re seeing it already. The impact of that won’t be seen until September and October,” Peter Kinch, an investor who focuses on British Columbia, told Canadian Real Estate Wealth. “Watch for overreaction in the media and the media is going to blow it out of proportion which could create a self-fulfilling prophecy whereby boomers and seniors will list their homes in the hopes of getting out while they can before a crash comes.”
Indeed, the Vancouver market is already seeing a slight softening of prices.
And with that expected to continue into the winter, it will create an opportune time for investors to snag a deal between November and February before prices correct themselves, according to Kinch.
“That will have an effect of dumping product on the market, downward pressure on prices and the end result of that will play itself out October/November when the year-over-year statistics really start to show,” he said. “So I’m looking for a very depressed sort of market over the winter months but when the dust settles and everything plays itself out, the spring will go right back to economic fundamentals of supply and demand and that will play itself out in a vibrant, healthy, spring market.
“I think we’ll see all the prices bounce back in spring.”
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The media will kick up a storm of overreaction to the impact the tax will have on prices, according to one investor who argues it will create an opportunity for savvy investors.