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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Dr. John Hooper is the new conductor of Island Voices. Photo supplied
Island Voices welcomes new conductor

This spring will be a time of transition for Island Voices chamber… Continue reading

From left—Rev. Ryan Slifka (minister, St. George’s); Ellen Wise (elder, St. George’s); Evangeline Mathura, (vice-president, Dawn to Dawn); Grant Shilling (outreach worker, Dawn to Dawn), with a cheque for $10,433.15.
Courtenay church donates more than $10,000 to transitional housing and support service

St. Goerge’s presents Dawn to Dawn with $10,433.15 cheque

A pine siskin is treated for salmonella poisoning at the Mountainaire Avian Rescue Society (MARS) hospital, in Merville. Photo by Gylaine Anderston.
Salmonella poisoning in birds and pets a result of unclean bird feeders

Have you ever endured a bout of food poisoning? If you remember… Continue reading

Inside the new shop operated by Wachiay Friendship Centre. Jared Kotyk (left), Jan Kotyk, Paloma Joy, Tim Gagnon, Jonah Hill, Jennifer Corbett and Tally, the shop dog. Photo supplied
Wachiay opens store-front arts shop in downtown Courtenay

There’s still tailor-work in the back of old AnnSew site, with the store in front

CSWM is planning to increase the space for loading bays at the Comox Valley Waste Management Centre. Record file photo
CSWM plans increase to number of Comox Valley landfill bays

The expansion prompted in part by COVID-19 spacing requirements

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

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

Gin, one of the Kantymirs’ two sheep. (Martha Wickett-Salmon Arm Observer)
Sheep start up ATV, sit in cars and go for walks in Salmon Arm

Until they bought two sheep, Ken and Karleen Kantymir didin’t realize just how social the animals are

Heather Lucier, a pastor at Kelowna Harvest Fellowship, speaks to an RCMP officer outside of Harvest Ministries on Sunday, Jan. 10. (Michael Rodriguez - Capital News)
Kelowna church fined 2nd time for violating public health order

Harvest Ministries in Kelowna has previously said they will fight the tickets in court

Emma Nunn from Alberni Valley Rescue Squad waits at the summit of Mount Arrowsmith for the rest of the AVRS rope rescue team on Sunday, Jan. 17, 2021. (PHOTO COURTESY DAVE POULSEN, AVRS)
UPDATE: Injured hiker among three rescued in the dark from Mount Arrowsmith

‘It was a very bad, very precarious spot to be able to locate them’

Powell River-Sunshine Coast MLA Nicholas Simons was appointed to the NDP cabinet as minister of social development and poverty reduction after the October 2020 B.C. election. (Hansard TV)
B.C. job training fund increased for developmentally disabled

COVID-19 has affected 1,100 ‘precariously employed’ people

A Sooke woman is speaking up after she was almost tricked by a lottery scam, claiming she had won $950,000 with Set for Life Lottery. (File Photo)
‘I wanted it to be true so badly’: Sooke senior narrowly avoids lottery scam

88-year-old received letter stating she had won $950,000

B.C. driver’s licence and identity cards incorporate medical services, but the passport option for land crossings is being phased out. (B.C. government)
B.C. abandons border ID cards built into driver’s licence

$35 option costing ICBC millions as demand dwindles

Submitted photo of Town Park C Block apartment fire.
Apartment fire in Port Hardy forces residents to jump from building

‘Multiple people were transported to the hospital with injuries from falling’

Most Read