BC MARKET UPDATE
BC REAL ESTATE UPDATE
It's been a while since we last checked in with the BC real estate market. Things have certainly changed since then. We've had an election, interest rates are rising, and the provincial government is talking about changing the foreign buyer tax. Moreover, the rental market has gotten tighter and builders are moving ahead with building more condos and other housing options for buyers on tight budgets. In this post we'll catch up on some of these changes plus provide some commentary on what it all means for your next home purchase or sale in BC!
Builders Push Ahead
The BC real estate market has experienced a surge in homebuilding over the past few months, with the number of homes under construction up by almost 40% and new home sales dropping almost 20%.
The number of homes being built in BC has increased by nearly 20% from last year, according to data from Statistics Canada. This is good news for those who are looking for more choice when it comes to buying a home or condo.
However, despite this growth in new inventory there's still plenty of demand for existing properties - especially among first-time buyers looking for starter houses at lower price points than what's currently available on the market today (just take a look at what you can get for under $200K).
Rental Squeeze Grows Tighter
The rental market is getting tighter. One of the most telling statistics is that average rents are up 8.1% y/y, but vacancy rates have fallen to 0.4%. This means that renters who want to live in Vancouver need to pay more and compete for a place to live.
It also means that if you own property, it's a great time to sell--as long as you're willing to accept less than your asking price (which is usually around 10%).
BC Market Summary
If you are looking to invest in BC real estate, you should know that the market is expected to remain strong. The BC real estate market has slowed down a bit since its peak in 2016, but it’s still strong. Experts predict that the market will be strong for at least the next few years and could continue being strong through 2024 or 2025.
The reason why we’re so optimistic about our local markets is because of the positive economic factors affecting all of Canada – namely low unemployment and a growing population.
Conditions have brought us close to a balanced market.
We’re seeing more people buy, sell and rent real estate.
This is great news! The market is starting to balance out after years of a shortage of inventory (i.e., homes for sale). That means we should see more buyers in the market as it becomes more competitive with fewer listings available for purchase. This will also mean prices will continue increasing over time because supply and demand are finally meeting at a point where there’s enough activity to keep prices rising.
The conditions for this trend have been building for some time now—that is, if you look back far enough into history you can see how we had reached a peak in terms of how much home equity was being put up against mortgages during 2008-2010 which led to higher home values due to increased demand from investors and first-time buyers alike looking at getting into real estate investment strategies as an alternative income stream away from their day jobs; this created an imbalance between supply and demand which later prompted price increases across all types of housing markets (high end condos/homes included)
You can see that the BC real estate market is in a balanced condition. There are still some opportunities to make money, but it may not be as easy as before. That being said, there is always room for growth with some patience