Real Estate Board of Greater Vancouver
| Specific Topics of Lobbying Communications | Intended Outcomes | Associated Subject Matters |
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ADDRESSING ROOT CAUSES: HOUSING SUPPLY
According to a survey of unsuccessful homebuyers in BC since January 2021, the most common reason for their unsuccessful purchase was competition from other potential buyers (49 per cent), followed by inadequate financing (31 per cent). Similarly, among concerns expressed by successful homebuyers, the largest concern was pressure to make an offer uncomfortably above the list price in order to be competitive (22 per cent).
A “cooling-off period” would not address the above issues. Policymakers would be better served by focusing their attention on the market fundamentals that drive prices. In an open and dynamic economy with robust population growth through immigration, demand for housing cannot and should not be restrained. If the goal is for British Columbians to prosper economically and then purchase high-quality homes across the province, this leaves one key policy lever for government to exploit: increasing housing supply.
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Development, establishment, amendment or termination of any program, policy, directive or guideline of the government of British Columbia or a Provincial entity, Development of any legislative proposal by the government of British Columbia, a Provincial entity or a member of the Legislative Assembly, Development or enactment of any regulation, including the enactment of a regulation for the purposes of amending or repealing a regulation
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Consumer Issues, Housing
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ENHANCE THE REAL ESTATE TRANSACTION FRAMEWORK
Given the presence of the extreme shortage of available listings, some buyers find themselves under pressure to forego proper due diligence and present subject-free offers that are greater than they are comfortable with. The ability to calmly consider the key aspects of a home purchase before making an offer has been a missing element during the overheated BC real estate market. However, implementing a “cooling off period” is not the answer to this problem, as it is likely to cause a series of unintended consequences, ultimately worsening consumer protection, without actually addressing the harried, frenzied process faced by buyers in preparing an offer. According to a survey of real estate professionals, a majority of respondents are concerned that if a “cooling off period” is implemented:
• consumers will look for workarounds, which may lead to more unrepresented parties,
• a “cooling off period” will worsen affordability by increasing the number of offers,
• there is a lack of metrics to understand the effectiveness of a “cooling off period,”
• the impacts will be significantly different in a seller’s market compared to a buyer’s market,
• there will be an imbalance between the rights of buyers and sellers,
• there will be an increase in frivolous offers, and
• sellers will face increased uncertainty, disrupting the market.
• if used indiscriminately by buyers, a “cooling off period” could tie up multiple houses in a
neighbourhood.
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Development of any legislative proposal by the government of British Columbia, a Provincial entity or a member of the Legislative Assembly, Development, establishment, amendment or termination of any program, policy, directive or guideline of the government of British Columbia or a Provincial entity, Development or enactment of any regulation, including the enactment of a regulation for the purposes of amending or repealing a regulation
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Consumer Issues, Housing
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IMPROVE STAKEHOLDER ENGAGEMENT
BC Real Estate Association, regional real estate boards and Realtors are disappointed that a mandatory “cooling off period” was announced without adequate prior consultation with the real estate sector. The intent to introduce a “cooling off period” in legislation was announced without a problem statement, supporting rationale, review of alternative measures, evidence of its anticipated effectiveness based on case study analysis or consideration for its impact on the many real estate sub-markets.
BC Real Estate Association's comprehensive white paper, "A Better Way Home: Enhancing Consumer Protection in BC Real Estate" offers recommendations to address housing supply, increase transparency, enhance consumer protections and improve stakeholder engagement. See, https://www.bcrea.bc.ca/wp-content/uploads/BCREA_BetterWayHome_WhitePaper.pdf
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Development, establishment, amendment or termination of any program, policy, directive or guideline of the government of British Columbia or a Provincial entity, Development of any legislative proposal by the government of British Columbia, a Provincial entity or a member of the Legislative Assembly, Development or enactment of any regulation, including the enactment of a regulation for the purposes of amending or repealing a regulation
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Consumer Issues, Housing
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