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

Kerri and Kevin Black are highlighted for their volunteer work with the Carr's Landing Community and Recreation Association. (Contributed)
Lake Country couple’s passion to make a difference

Spotlight on Carr’s Landing Community and Recreation Association volunteers

Pink Shirt Day’s anti-bullying messaging on Feb. 24 should be understood every day of the year. (Contributed)
COLUMN: Millennial’s guide to online trolls, bullies

Messages of Pink Shirt Day should be front of mind all year long, especially online

B.C. provincial health officer Dr. Bonnie Henry wears shoes designed in her honour, as she views her image at the Murals of Gratitude exhibition in Vancouver, on July 3, 2020. (Darryl Dyck - The Canadian Press)
Celebrating Vernon women in leadership this International Women’s Day

Pandemic highlights women excelling in critical response roles

Mya Kondor, owner and trainer of Canines and Co. in Kelowna. (Brendan Shykora - Morning Star)
VIDEO: Kelowna dog school offers puppy socialization classes amid COVID-19

Canines and Co. has adapted to the pandemic to provide training essential to puppies’ development

Providing seniors with tablets in order to stay connected is just one of the services offered by the Lake Country Health Planning Society. (Literacy Alliance of the Shuswap Society photo)
Support helps Lake Country society reduce COVID impacts on mental health

District grants funding to Health Planning Society

Abbotsford’s Kris Collins turned to TikTok out of boredom when the provincial COVID-19 lockdown began in March 2020. She now has over 23 million followers on the video app. Photo: Submitted
Internet famous: Abbotsford’s Kris Collins is a TikTok comedy queen

Collins has found surprise stardom alone with a phone

Chase RCMP held two men involved in drunken disturbances overnight in their detachment’s cells on Feb. 6. (File Photo)
Chase RCMP hold two men involved in drunken disturbances overnight

The two seperate incidents took place less than an hour apart.

Kamloops Fire Rescue battled a landfill fire which belched toxic smoke into the air on Feb. 27. (City of Kamloops Photo)
Fire at Kamloops landfill sends thick black smoke into the air

Firefighters made slow progress on the fire throughout the morning.

A Vancouver restaurant owner was found guilty of violating B.C.’s Human Rights Code by discriminating against customers on the basis of their race. (Pixabay)
Vancouver restaurant owner ordered to pay $4,000 to customers after racist remark

Referring to patrons as ‘you Arabs’ constitutes discrimination under B.C.’s Human Rights Code, ruling deems

Approximate location of the vehicle incident. (Google Maps)
Vehicle incident blocking Coquihalla traffic in both directions

Both directions of traffic stopped due to vehicle incident

(HelloKelowna - Twitter)
West Kelowna billboard bearing anti-vaccine messaging deemed misleading

Ad Standards investigated the billboard, noting a lack of evidence to support the messaging

Baldy Mountain Resort is temporarily closed following the death of a resort family member. Pictured above is a sunrise at the resort, Feb. 19, 2021. (Baldy Mountain Resort/Facebook)
Baldy Mountain ski hill closed following death of resort family member

Authorities currently investigating, resort set to reopen Sunday, Feb. 27

RCMP. (Phil McLachlan/Capital News)
Chase RCMP arrest intoxicated man running into highway traffic

The man was wanted on several warrents in Alberta; was held overnight but released

Nanaimo children’s author and illustrator Lindsay Ford’s latest book is ‘Science Girl.’ (Photo courtesy Lindsay Ford)
B.C. children’s writer encourages girls to pursue the sciences in new book

Lindsay Ford is holding a virtual launch for latest book, ‘Science Girl’

Most Read