Real Estate Trends to watch for as BC Reopens

It’s clear that the British Columbia real estate market has been booming over the past year. We’ve seen significant increases in home sales and prices since the pandemic started in March 2020. As a growing percentage of the population is vaccinated and more people are being tested positive for COVID-19, the province has entered phase 3 of BC’s Restart Plan. BC should enter phase 4 by September 7, 2021, if hospitalizations and case numbers continue to fall.

This image has an empty alt attribute; its file name is 25393427_web1_20210104-BPD-business-open-dec21.20.bcg_-1024x683.jpg

As Canada reopens its doors for business after the shutdown, there are many Real Estate Trends to watch for as the market recovers. In particular, there are some trends that could prove to be game-changers. In particular, the supply of available properties will likely be limited. With pent-up demand so great, sellers will be hesitant to list their property. Ultimately, this will affect pricing.

Key Takewaway

There are many trends that will impact BC’s real-estate market, and these rapid changes have been so significant. COVID-19 was a major change in the BC real estate market, and it will continue to have an impact on the market. Here are the main real estate trends that you need to be paying attention as BC reopens:

  1. Rising Interest Rates
  2. Record sales may slow.
  3. Revised Mortgage Stress Test: Implications
  4. Sales-to-Active Ratio
    Monthly-over-Month New Active Listings
  5. Office Vacancy Rates
    Household Preference Changes

A recent survey of real estate professionals by PwC and the Urban Land Institute found that over half of respondents were looking to purchase apartments in cities with moderate incomes, while a fifth said they would prefer to rent low-income properties. In terms of retail, multi-family rental properties are also a strong investment prospect. Combined with the rise of e-commerce, this could make work-from-home options the new norm for many Canadians.

The Impact of Rising Interest Rates on the Housing Market

The Bank of Canada raised interest rates to an new high since 2007 after the pandemic and inflation data. The rates have remained at 0.25 per cent for the past year.

Benjamin Tal, CIBC’s Deputy Chief Economist, said that Canadians are sensitive to higher interest rates. The US Federal Reserve has stated that they will not touch rates until 2023. However, Tal believes Canada could move faster. It is possible that home price growth will slow as interest rates in Canada return back to pre-pandemic levels.

Predicting a Slowdown in Record Sales

The sales volumes are at an all-time high, with 14,000 units being sold per month surpassing the 2016 highs. The demand has outpaced the supply and units are no longer staying on the market very long. It’s not unusual for homes in Greater Vancouver to be sold in one weekend.

Although it is difficult to predict when sales will slow, the Canadian Real Estate Association (CREA), expects that housing activity will ease in the second half of 2021 as well as into 2022. According to the association, sales drops are expected to be the greatest in BC as well as Ontario.

Understanding the Implications of the Revised Mortgage Stress Test

New rules were introduced to try and cool down the hot housing market. It is important to ask the question, “Will it work?” This is the revised mortgage stress test. It’s a rule that will allow homebuyers to get mortgages at twice the current rates. The minimum qualifying rate is the rate offered to you by your lender, plus 2% or 5.25%.

The revised mortgage stress test is said to decrease homebuyers’ buying power by as high as 4%. The new rules may make it more difficult for those trying to enter the market.

Read more:

Analyzing the Sales-to-Active Ratio in Real Estate

An analysis of sales to active listings is one way to determine if we are currently in a seller’s or buyer’s market. Sales to active listings ratios have reached all-time highs across most of the province, with a particular focus on Greater Vancouver. The June sales to active listing ratio was 39% in May, but it was only 34.7% in Greater Vancouver. This is still a strong indicator of a seller’s market. This is usually defined as any market with a sales-to-active listings ratio greater than 20%.

A buyer’s market would be one where prices are declining. To achieve this, the sales-to-active listings ratio must fall below 12%. While we are still far from this number, it is worth keeping an eye on to see if it continues to drop lower.

Tracking Monthly New Active Listings Trends

Month-over-month changes in listings are another important trend to watch that is moving downward. Here are the numbers of new listings in Metro Vancouver for April, May and June.

April: New listings for detached, attached and apartment properties in Vancouver

May: 7125 detached, attached and apartment properties are now listed in Metro Vancouver

June: New listings for detached, attached and apartment properties in Metro Vancouver.

Many people have called for more supply in Metro Vancouver to meet the demand. However, there are fewer homes on the market, making it difficult to see how buyers will be able to find homes anytime soon.

Examining Office Vacancy Rates and Their Effects

The MLS Home Price Index gives information about the benchmark home prices in BC, including information on detached homes, townhomes, and apartments. It is possible to view the benchmark prices for individual cities and regions, which can help you spot trends in BC as it reopens. The prices are steadily rising month over month as many communities across the province experience record highs. MLSHPI Benchmark Prices provide a great overview of the market.

Adapting to Shifts in Household Preferences

Canadian commercial real property was hard hit by the pandemic. But things are improving or even better. CBRE’s new report suggests that office vacancy is slowing, and industrial demand is at unprecedented levels. With Vancouver’s low industrial availability rate of 1.1% and rising land costs, CBRE predicts that Vancouver will run out of industrial space within six months.

Expect to see a decrease in office vacancy rates as more workers return home to major cities centers in the not too distant future.

Evolving Household Preferences and Real Estate Dynamics

The most important trend to watch as BC reopens will be whether household preferences match pre-pandemic interest. While many policymakers believe that preferences will naturally decline due to the pandemic, others believe that the new dynamic is here for the taking.

We’ll see shifts as some people return to work and others work remotely. Many people moved away from the city to find more affordable, spacious housing. These preferences will be reflected in the market when BC reopens. It will take time to see if they will.


How will the Real Estate Trends in BC affect the Best Places for Young Adults to Live?

With rising prices and limited availability, affordability becomes a key factor in determining suitable options. However, some top bc regions to live, like Victoria and Kelowna, may still attract young adults due to their vibrant communities, job opportunities, and desirable lifestyle.

Summary


The real estate market in British Columbia has been affected by the COVID-19 pandemic. Interest rates have risen, which may slow sales, and the mortgage stress test has been revised, creating implications for buyers and sellers. The sales-to-active ratio has also decreased, and monthly-over-month new active listings have dropped significantly.

Office vacancy rates are also higher due to increased work-from-home requirements.

Finally, household preferences have changed, with buyers looking for more outdoor and home workspace options.

Sources:

https://www.cbc.ca/news/canada/british-columbia/northern-bc-real-estate-1.5697892

https://globalnews.ca/news/7574344/bc-real-estate-gains-coronavirus/


Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.

Lets Have a Smart Conversation.

Let's Chat! Looking for a REALTOR© who can exceed your expectations? Look no further than Richard Morrison! His mission is to serve without limit & provide solutions that cater to your core needs.
* 20+ Years of Experience
* Medallion Member
* RE/MAX Hall of Fame

Your Privacy is important to us. View our Privacy & Data Collection Policy.

Latest Vancouver Listings

Active
$250,000
Lot 7 COLDWELL BEACH, North Vancouver Home for sale, MLS® R2828248

4 days ago

Indian Arm freehold property in desirable Coldwell Beach at an attainable...

$250,000

MLS®: R2828248 Stonehaus Realty Corp.

4 days ago

Active
$2,880,000
5802 EAGLE ISLAND BC, West Vancouver, R2828363

Beds: 2Baths: 2Built in 19201479 sqft

4 days ago

Beds: 2Baths: 2Built in 19201479 sqft

Gorgeous waterfront property on Eagle Island, West Vancouver with...

$2,880,000

MLS®: R2828363 Oakwyn Realty Encore

4 days ago

Active
$1,549,900
1827 E 38TH AVE, Vancouver Houses for sale, MLS® R2828335

Beds: 2Bath: 1Built in 1949900 sqft

4 days ago

Beds: 2Bath: 1Built in 1949900 sqft

ATTENTION BUILDERS! 3365 Square foot level lot backing onto newly revamped...

$1,549,900

MLS®: R2828335 RE/MAX All Points Realty

4 days ago

Active
$899,900
905 1295 RICHARDS ST, Vancouver Apartment for sale, MLS® R2828382

Beds: 2Baths: 2Built in 2002747 sqft

4 days ago

Beds: 2Baths: 2Built in 2002747 sqft

Introducing a 2-bedroom suite that defines urban elegance. With an added...

$899,900

MLS®: R2828382 One Percent Realty Ltd.

4 days ago

Active
$979,900
1805 1238 MELVILLE ST, Vancouver Condos for sale, MLS® R2828339

Beds: 2Baths: 2Built in 1996945 sqft

4 days ago

Beds: 2Baths: 2Built in 1996945 sqft

Generously sized 2 bedroom and 2 bathroom apartment in the heart of Coal...

$979,900

MLS®: R2828339 Oakwyn Realty Ltd.

4 days ago

Active
$1,898,000
222 618 W 45TH AVENUE BC, Vancouver, R2828362

Beds: 3Baths: 2Built in 20001650 sqft

4 days ago

Beds: 3Baths: 2Built in 20001650 sqft

The Conservatory Luxury air-conditioned concrete large-size condo is the...

$1,898,000

MLS®: R2828362 Oakwyn Realty Encore

4 days ago

Active
$1,849,800
S107 5005 ASH ST, Vancouver Apartment for sale, MLS® R2828361

Beds: 3Baths: 2Built in 20241297 sqft

4 days ago

Beds: 3Baths: 2Built in 20241297 sqft

Autograph is a signature series of just 64 homes by renowned local...

$1,849,800

MLS®: R2828361 Engel & Volkers Vancouv...

4 days ago

Active
$708,000
1002 1565 W 6TH AVENUE BC, Vancouver, R2828352

Bed: 1Bath: 1Built in 2013511 sqft

4 days ago

Bed: 1Bath: 1Built in 2013511 sqft

Westside architectural excellence. The latest signature address behind the...

$708,000

MLS®: R2828352 LeHomes Realty Premier

4 days ago

Active
$1,888,000
309 6707 NELSON AVE, West Vancouver Apartments for sale, MLS® R2828321

Beds: 2Built in 20221176 sqft

4 days ago

Beds: 2Built in 20221176 sqft

This breath taking 2 bedrooms + 2 bathrooms ocean view unit located in...

$1,888,000

MLS®: R2828321 RE/MAX Masters Realty

4 days ago

Active
$664,900
2401 3438 SAWMILL CRESCENT, Vancouver Apartments for sale, MLS® R2828316

Bed: 1Bath: 1Built in 2022565 sqft

4 days ago

Bed: 1Bath: 1Built in 2022565 sqft

MODE presents this 565sf east facing 1 bedroom + flex home in River...

$664,900

MLS®: R2828316 Wesgroup Realty Ltd.

4 days ago

Active
$595,000
1507 108 W CORDOVA ST, Vancouver Condo for sale, MLS® R2828313

Bed: 1Bath: 1Built in 2009583 sqft

4 days ago

Bed: 1Bath: 1Built in 2009583 sqft

Welcome to the Legendary Woodwards W32. An immaculate and cozy 1 bedroom 1...

$595,000

MLS®: R2828313 RE/MAX Select Properties

4 days ago

Active
$1,128,000
2906 777 RICHARDS STREET BC, Vancouver, R2828280

Beds: 2Baths: 2Built in 2016886 sqft

4 days ago

Beds: 2Baths: 2Built in 2016886 sqft

Welcome to the TELUS GARDENS - award-winning LEED gold architecture by...

$1,128,000

MLS®: R2828280 Royal LePage Global Force R...

4 days ago

Active
$1,020,000
512 2788 PRINCE EDWARD STREET BC, Vancouver, R2828286

Beds: 2Baths: 2Built in 2013945 sqft

4 days ago

Beds: 2Baths: 2Built in 2013945 sqft

Fabulous 2 bedroom, 2 baths + den, NE Corner suite at UPTOWN by Concord...

$1,020,000

MLS®: R2828286 Regent Park Realty Inc.

4 days ago

Active
$2,998,000
3475 MATHERS AVE, West Vancouver Homes for sale, MLS® R2828364

Beds: 4Baths: 3Built in 19672763 sqft

4 days ago

Beds: 4Baths: 3Built in 19672763 sqft

Lovely family home in this prime West Bay location. Gorgeous city and...

$2,998,000

MLS®: R2828364 Royal Pacific Riverside Rea...

4 days ago

Active
$899,000
3603 5665 BOUNDARY ROAD BC, Vancouver, R2828331

Beds: 2Baths: 2Built in 2016818 sqft

5 days ago

Beds: 2Baths: 2Built in 2016818 sqft

PENTHOUSE home in Wall Centre Central Park! STUNNING panorama views of the...

$899,000

MLS®: R2828331 Nu Stream Realty Inc.

5 days ago

Active
$928,800
1888 87 NELSON ST, Vancouver Apartments for sale, MLS® R2828305

Bed: 1Bath: 1Built in 2019699 sqft

5 days ago

Bed: 1Bath: 1Built in 2019699 sqft

'The Arc' by Concord Pacific! The best 1 bedroom floorplan in the...

$928,800

MLS®: R2828305 RE/MAX Masters Realty

5 days ago

Active
$1,358,900
205-206 3438 SAWMILL CRESCENT, Vancouver Condos for sale, MLS® R2828302

Beds: 3Baths: 3Built in 20221406 sqft

5 days ago

Beds: 3Baths: 3Built in 20221406 sqft

MODE presents this 1406sqft East facing 3bedroom+flex+3baths home in River...

$1,358,900

MLS®: R2828302 Wesgroup Realty Ltd.

5 days ago

Active
$488,000
310 211 W 3RD ST, North Vancouver Condo for sale, MLS® R2828299

Bed: 1Bath: 1Built in 1973631 sqft

5 days ago

Bed: 1Bath: 1Built in 1973631 sqft

A nicely updated unit with a spacious sized bedroom and 1 bath. The...

$488,000

MLS®: R2828299 Royal LePage Sussex

5 days ago

Active
$925,000
804 939 HOMER ST, Vancouver Condo for sale, MLS® R2828293

Beds: 2Baths: 2Built in 1997903 sqft

5 days ago

Beds: 2Baths: 2Built in 1997903 sqft

The Pinnacle, an Iconic building in the heart of Yaletown. This unit has...

$925,000

MLS®: R2828293 Century 21 In Town Realty

5 days ago

Active
$499,800
206 688 E 56TH AVENUE BC, Vancouver, R2828287

Bed: 1Bath: 1Built in 1997638 sqft

5 days ago

Bed: 1Bath: 1Built in 1997638 sqft

South Vancouver simply affordable one-bedroom home features spacious...

$499,800

MLS®: R2828287 Royal Pacific Realty (Kings...

5 days ago

Start your search with Richard Morrison, Top Award Winning Vancouver Realtor:

Contact Richard Morrison Top Vancouver Realtor today to find a Vancouver real estate and Vancouver condos for sale. This includes eastside residences and eastside apartment for sale. Also check out West Vancouver homes for sale or maybe an West Vancouver condos for sale. If you prefer North Shore, take a look at our listings in North Vancouver homes for sale and North Vancouver condos for sale.

Vancouver East Houses

Collingwood
Downtown East
Fraser
Fraserview
Grandview
Hastings
Hastings Sunrise
Killarney
Knight
Main
Mt Pleasant
Renfrew Heights
Renfrew
South Van
Victoria

Vancouver West Houses

Arbutus
Cambie
Dunbar
Kerrisdale
Kitsilano
McKenzie Heights
Marpole
Oakridge
Point Grey
Quilchena
SW Marine
Shaughnessy
South Cambie
South Granville
University
West End

Vancouver East Apartments

Champlain Heights
Collingwood
East Downtown
Fraser
Grandview Woodland
Hastings
Hastings Sunrise
Killarney
Knight Condos
Main
Mount Pleasant VE
Renfrew Heights
Renfrew
South Marine
South Van
Strathcona
Victoria VE

Vancouver West Condos

Arbutus
Cambie
Coal Harbour
Downtown VW
Dunbar
Fairview
False Creek
Kerrisdale
Kitsilano
Marpole
Mount Pleasant VW
Oakridge
Point Grey
Quilchena
S.W. Marine
Shaughnessy
South Cambie
South Granville
Southlands
University
West End VW
Yaletown
img

Richard Morrison

My name is Richard Morrison and I aim to empower people to buy and sell real estate in the most effective way possible. I can service all of your Metro Vancouver real estate needs & beyond. I specialize in Vancouver, North Vancouver, West Vancouver, Vancouver West, Richmond, Burnaby and other areas in the Lower Mainland BC Canada. You can be assured that whether buying or selling your home, I will get the job done. I offer a full compliment of real estate services with 15+ years of experience. About Richard Morrison

Related posts

How do I protect my home sale from Shadow Flipping?

Vancouver's shadow-flipping has been a hot topic in the media in British Columbia, Canada. But are...

Continue reading
by Richard Morrison
  • News

Home Staging Vancouver: How to Stage Your Property Without a Huge Expense

Home staging is the process of enhancing the appearance of a property to make it more appealing to...

Continue reading
by Richard Morrison

99 Years or Bust: Should You Buy a Leasehold Property in Vancouver?

Life is full of tradeoffs. If you want a bigger home and ownership in a great neighbourhood, it...

Continue reading
by Richard Morrison