Realtors in British Columbia are raising concerns about the province’s cooling-off period for real estate transactions. They argue that this period, intended to give buyers time to reconsider, is being exploited and worsening the current housing inventory shortage.
Challenges Identified
Jared Gibbons, a real estate agent, supports the call to amend or scrap the legislation. He acknowledges the benefits of the cooling-off period but highlights the challenges it poses for both buyers and sellers.
The Cooling-off Period
Under the Home Buyer Rescission Period legislation, buyers have a few days to reconsider their decision. However, Phil Soper, CEO of Royal LePage, argues that it’s being abused by buyers making multiple offers, tying up limited housing inventory.
Support and Concerns
Gibbons supports the call for change but notes that the current system causes delays and frustrations. Karen Yolevski, COO for Royal LePage, adds that sellers also face disadvantages, especially in a low inventory market.
Seller’s Perspective
Yolevski explains that sellers must wait for the rescission period to end before making a move on a house, leading to confusion and frustration, particularly in low inventory markets.
Market Challenges
Randy Ryalls, General Manager for Royal LePage Sterling Realty, notes that Greater Vancouver is experiencing low inventory and high competition among buyers. The confusion and competition from the rescission period contribute to existing pricing pressures.
Market Trends
According to the British Columbia Real Estate Association (BCREA), the average residential price decreased by 12.6% year-over-year. However, between February and March 2023, the average price rose by 2.2%, as per Brendon Ogmundson, Chief Economist at BCREA.
Conclusion
Overall, real estate agents are urging the government to review the Home Buyer Rescission Period legislation to ensure a balanced benefit for both buyers and sellers.
Please contact Jared Gibbons, your local realtor, should you have any questions.