Houses are seen in an aerial view, in Langley, B.C., on Wednesday, May 16, 2018. 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. THE CANADIAN PRESS/Darryl Dyck

Houses are seen in an aerial view, in Langley, B.C., on Wednesday, May 16, 2018. 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. THE CANADIAN PRESS/Darryl Dyck

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

The report also forecasts a firmer rental market through 2022 as economic conditions normalize

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.

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.”

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusHousingReal estate

Just Posted

North Okanagan business Hytec Kohler set up a COVID-19 vaccination clinic at the Spallumcheen plant Friday, May 14. (Jennifer Smith - Morning Star)
More than half of eligible adults in Interior Health vaccinated

Over 365,000 vaccine doses have been administered throughout the Interior Health region

Crews work to repair Horsefly Road east of Williams Lake . (Ministry of Transportation video)
MoTI activates district operations centre, response to flood damaged roads in Cariboo region

Engineers, experts being pulled from across the province to help

RCMP officers on scene Friday, May 14 off Bond Lake Road on the outskirts of Williams Lake. (Monica Lamb-Yorski photo - Williams Lake Tribune)
Update: Williams Lake RCMP arrest one suspect after firearms incident near Bond Lake Road

Given the severity, suspect is being held in custody for a court appearance

An official naming ceremony for the Nekw7usem Bridge connecting the RC Cotton Trail to Scout Island will take place Monday, May 17 at noon. (Patrick Davies file photo - Williams Lake Tribune)
City, WLFN hosting naming ceremony for Nekw7usem Bridge in Williams Lake

The pedestrian bridge connects the RC Cotton Trail to Scout Island

Patricia Froberg (from left), Pat Mitchell and Dorothy Ouellette enjoy lunch prepared by members of the Old Age Pensioners Organization for St. Patrick’s Day Wednesday afternoon. Today, May 14, the Old Age Pensioners Organization Branch 93 and the Seniors Activity Centre are hosting an Old Fashioned Drive In lunch with car hop service at the SAC parking lot from 11:30 a.m. to 1 p.m. (Greg Sabatino photo - Williams Lake Tribune)
Old Fashioned Drive In Lunch on menu at seniors centre today, May 14

From 11:30 a.m. to 1 p.m., swing on by the SAC parking lot for an Old Fashioned Drive In lunch

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Bradley Priestap in an undated photo provided to the media some time in 2012 by the London Police Service.
Serial sex-offender acquitted of duct tape possession in B.C. provincial court

Ontario sex offender on long-term supervision order was found with one of many ‘rape kit’ items

Rich Coleman, who was responsible for the gaming file off and on from 2001 to 2013, was recalled after his initial testimony to the Cullen Commission last month. (Screenshot)
Coleman questioned over $460K transaction at River Rock during B.C. casinos inquiry

The longtime former Langley MLA was asked about 2011 interview on BC Almanac program

Steven Shearer, <em>Untitled. </em>(Dennis Ha/Courtesy of Steven Shearer)
Vancouver photographer’s billboards taken down after complaints about being ‘disturbing’

‘Context is everything’ when it comes to understanding these images, says visual art professor Catherine Heard

Trina Hunt's remains were found in the Hope area on March 29. Her family is asking the public to think back to the weekend prior to when she went missing. (Photo courtesy of IHIT.)
Cousin of missing woman found in Hope says she won’t have closure until death is solved

Trina Hunt’s family urges Hope residents to check dashcam, photos to help find her killer

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Restrictions will lift once 75% of Canadians get 1 shot and 20% are fully immunized, feds say

Federal health officials are laying out their vision of what life could look like after most Canadians are vaccinated against COVID-19

Police are at Ecole Mount Prevost Elementary but the students have been evacuated. (Kevin Rothbauer/Citizen)
Gardener finds buried explosives, sparking evacuation of Cowichan school

Students removed from school in an ‘abundance of caution’

Most Read