B.C. housing market to remain vibrant through the new year: report

Brian Yu, Central 1 deputy chief economist, authored the report and calls B.C.’s ongoing pandemic recovery a “mix of short-term challenges and future optimism.”

A company that supports hundreds of credit unions across Canada predicts British Columbia’s housing market will remain healthy through 2021 as the province moves out of its COVID-19 slump. PHOTO BY ASHLEY FRASER/POSTMEDIA NEWS FILES

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A company that supports hundreds of credit unions across Canada predicts British Columbia’s housing market will remain healthy through 2021 as the province moves out of its COVID-19 slump.

A report from Central 1, the organization that handles financial services, digital banking and other resources for more than 250 credit unions, says B.C. has seen a “spectacular” rebound in housing demand since pandemic-induced lows in the spring.

The report says affordability remains a focus, as median home prices are up nine per cent this year to $585,000 and are forecast to climb a further six per cent to $618,000 in 2021.

It says the number of homes sold in B.C. leaped 20 per cent this year, overcoming the pandemic downturn, and up to 95,000 properties could change hands next year, nudging market highs set in 2017.

It credits the surge to “unique characteristics” of pandemic economics, ongoing low interest rates and higher-paid workers remaining relatively unscathed from the worst of the COVID-19 contractions.

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The report also forecasts a firmer rental market through 2022 as economic conditions normalize, border restrictions ease and post-secondary institutions reopen.

But it says rents shouldn’t budge much over the coming year, while a provincially imposed rent freeze is in effect.

Brian Yu, Central 1 deputy chief economist, authored the report and calls B.C.’s ongoing pandemic recovery a “mix of short-term challenges and future optimism.”

“Economic growth is forecast to pick up steam in the second quarter of 2021 onwards as the vaccine drives higher investment spending and consumer spending is unleashed when social and travel restrictions are eased,” Yu writes.

Some job loss will continue in B.C.’s “fragile sectors,” Yu says.

Even though employment remains 1.5 per cent lower than it did in February, he says the province is outperforming most others and sectors such as retail spending, manufacturing, and exports are “largely recovered.”

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  1.  
     
     
    5 HRS AGO

    Vancouver's real estate market will remain vibrant because international drug money still needs to be laundered and Vancouver real estate is one of the best places to put it. This is because we have marshmallow governments that don't have the cojones to do anything about banning foreign ownership of real estate. The endless immigration and real estate speculation has turned a once pleasant city into an overcrowded boring place with all the ambience of an Alberta feedlot.

     
     
     
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  2.  
     
     
    6 HRS AGO

    keep that dark money rolling in !

     
     
     
  3.  
     
     
    7 HRS AGO

    Biased data garbage from a company that fully depends on the purchase of houses by its indirect clients. Plenty of conflict of interest was added to create a powerful flavour. Manure flavour; that is.

    P.S. I love these dead-on-arrival articles that are so easy to debunk. Keep them coming, as they are great mini lessons for the masses who learn how to put their shield up against a vast variety of germs and pests.

     
     
     
  4.  
     
     
    10 HRS AGO

    Brian Yu Quoted: "Even though employment remains 1.5 per cent lower than it did in February, he says the province is outperforming most others and sectors such as retail spending, manufacturing, and exports are “largely recovered.”

    Translated that means BC employment has recovered to 98 percent of pre-pandemic levels as I posted earlier. So much for the bs allegations from the straw men who ignore facts.

    The tourism/accommodation sectors always report a "high" structural unemployment rate because summer tourism shuts down anyways for the winter. Many of those displaced workers are not sitting on their hands. They obviously have found employment in other sectors such as healthcare, education, etc., which explains why BC's employment recovery is the best in Canada. EDITED

     
     
     
  5.  
     
     
    12 HRS AGO

    I guess the housing collapse theorists and other bubble heads hoping for a collapse will again claim the opposite. EDITED

    •  
       
       
      9 HRS AGO

      But....but.....billy boy ferguloserson said the market is crashing!!!!

      I trust billy boy!!!he knows best!!!!

    •  
       
       
      6 HRS AGO

      Anyone listening to that guy is doing themselves a serious disservice.

     
     
     
     
     
     
 
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