7 Things the Fall Housing Market Could Have in Store for Buyers in BC
Article Courtesy | REW | Justin Kerby
BC’s housing market has been on quite the run over the past 18 months. The pandemic and monetary policies that were influenced by the economic uncertainty pushed home prices up significantly, as demand continued to outpace supply. Most of the primary market drivers remain in place, and though the summer months have been relatively quiet compared to the beginning of 2021, the fall housing market could have more movement in store for buyers in BC.
1. A hot pre-sale market
BC’s pre-construction market should continue to be busy this fall, with buyers looking to lock in low interest rates with a relatively small initial deposit. In city centers and the suburbs alike, interest in new builds has surged in recent months.
There are many reasons why new developments in BC are becoming more attractive, especially in regards to their flexibility. In most cases, presale properties can take years to build. This gives first-time buyers the opportunity to save more for a down payment, and current homeowners the time to renovate or fix up their existing home for sale. With many homeowners being wary about selling their homes during the pandemic, investing in a prebuild has been an attractive option here in BC.
2. Demand should continue to outpace supply
Though much of the talk for the last few months has been about the cooling of Canada’s real estate market, a lack of supply has been one of the main drivers of the declining month-over-month sales numbers. A decline in new listings on the national level has left buyers with limited options to choose from, which could drive prices higher as more buyers enter the market. CMHC has stated that the annual pace of housing starts slowed in July, another indicator that supply may not be able to keep up with demand in the coming months. A limited supply continues to be one of the main stories in BC, and a potential fourth wave could keep more sellers on the sidelines if last year’s selling trends continue. More COVID-19 cases could potentially mean fewer sellers in BC.
3. Low interest rates will continue to fuel demand
You will not see many people calling for a market correction as long as interest rates remain where they are, and the Bank of Canada has indicated that a rate hike is not coming in 2021. When the cost of borrowing remains low, activity typically remains high. As we head into the fall and winter months, low interest rates should continue to drive buyers to search for homes in BC.