B.C.’s Finance minister is cautiously optimistic in signs of a moderated housing market even though there were some troubling indicators in this week’s provincial budget.

Finance minister Carole James says monitoring a number of housing indicators will be key over the next year with property transfer tax revenues flatlining and new housing starts forecast to drop by a third.  But James adds not everything is within her government’s control.

“We have to remember that government does not control all the tools when it comes to housing,” she said. “The federal government obviously with the mortgage stress test but also interest rates.”

“If interest rates start to climb that is going to have an impact on the housing market as well. When we talk about monitoring the market we are monitoring those outside factors as well and we have to take those into account when we take a look at what direction we are going to go on housing.”

James says there other more promising signs with an uptick in vacancy rates in Metro Vancouver and prices declining.