WHAT WILL THE RECENT ELECTION OF THE LIBERAL PARTY BACK INTO POWER MEAN FOR THE HOUSING MARKET IN BC?
As a collective sign of relief swept over the province following the results of the most recent provincial election, a golden question those are asking is now with the Liberals around for another 4 years, what will come of the housing market. Good question.
Historically, the NDP governed during a period (1991-2001) that saw average house prices in the Greater Vancouver area appreciate at roughly $18,000/year. The Liberals topped that by averaging house price increases of over $50,000/year during their most recent tenure (2001-present). These figures can be misleading though, as many outside factors, other than government policy, come into play.
We've seen a relatively quiet Spring Market this year, and some of that can be attributed to people holding out until after the election. The possibility of a new government along with vague policy platforms adds to the uncertainty of the market, which will influence some buyers to take a 'wait and see' approach to their potential purchases. A re-election of a Liberal government will likely see people assume that many of the same policies of the past 12 years will continue, while an election of an NDP government will have individuals continue to be cautious, as we find out whether they govern in the same moderately cautious platform that they campaigned on.
With an NDP government in power, uncertainty played the key factor. Still cleaning up their reputation from years past, anyone sitting on the fence about that next big move can optimistically take a breath of relief as the Liberal government sits atop the throne for the next 4 years. Expect things to continue along, and possibly even get busier as the fog has lifted.