The BC housing market in British Columbia has risen to one of the higher prices across the nation. Despite the heat before the world health catastrophe of one hundred years ago. The coronavirus has helped the province reduce its heat. And this extends beyond the Vancouver housing market.
The British Columbia Real Estate Association (BCREA) estimates that in August 2021. The price of residential property increased by 17.2 percent annually, and close to $ 902,000. Total sales value increased by 8.9 percent annually, to $ 8.6 billion. Listing of functional accommodation decreased by 37.9 percent annually. While housing supply declined to a new low in August.
Simple words, choosing and buying a house in the BC real estate market has proven to be challenging for small families and first-time buyers. But the challenge of owning a home may be simple. As new research reveals that homeowners are considering leaving BC to move elsewhere.
Surveys Reveal Homeowners Leaving BC Housing Market
A recent Insights West survey found that 29% of BC homeowners want to clear their front lawn over the next five years. While 17% are considering selling their homes in the next two years.
According to the same study, the reasons are different for these homeowners. Ten percent of BC homeowners are thinking of selling their property for a small fee. In order to find a better home or to purchase a property at a lower price. 11 percent of the total of participants said they would like to relocate to British Columbia. While 9% want to relocate to a different state. Of those in charge, eight percent planned a trip, six percent wanted to hire, and six retired.
But why now? More than one-third (36 percent) of homeowners who are busy selling their homes have indicated that the COVID-19 public health problem weighed in on their decision. The epidemic even affected tenants, with one quarter thinking of buying a place in BC or somewhere very affordable.
“The relentless rise in housing prices in BC and Metro Vancouver. In particular has caused many homeowners to limit their investment options. Steve Mossop, president of Insights West, told the news release. “The option to reduce or relocate to a different location in BC. So that they can use equity in their existing home has a lot to weigh in on other options.”
The survey also revealed some ideas about the state of the BC real estate market.
Housing prices will keep rising over the coming 12 months, as according 72% of respondents. About the same number and expect higher housing and housing prices over the next two to five years. This view is shared with tenants and homeowners. It is also in line with a recent report that found thousands of years out of the BC real estate market.
Opportunities for higher interest rates are also common among BC residents. About two-thirds think that interest rates will increase next year, but there are disagreements about how much money. The survey found that 48 percent believed prices would rise slightly, while about one-fifth admitted they would go too far. All the same, the majority of survey participants agree that costs will increase more over the following two to five years.
An online survey was conducted between June 23 and June 27 among 808 citizens. The study contains an error limit of +/- points of 3.4 percent.
Is New Coming to the BC Housing Market?
With so many homeowners moving out of the state housing market. Does this mean that more offers can come online and provide much-needed assistance to prospective buyers? Indeed, the BC housing market suffers from low inventories. The Canadian Mortgage and Housing Corporation (CMHC) reports say that this summer have seen a drop in housing development. Dropping to 3,623 in August 2021 from 3,512 during the same month previous year. So far, even if the Bank of Canada (BoC) is pushing for price increases. Also, Pressure on mortgage lending is reducing consumer spending. it might take some time before buyers notice significant price reductions.
As elected landlords, real estate buyers face many challenges in obtaining home ownership. The supply is very strong, and prices have risen throughout the epidemic throughout the BC real estate landscape.
But, if homeowners choose to sell, where can they go? Not just British Columbia is dealing with such a housing crisis. From Prairies to the Maritimes, additional accommodations across the country are beyond the budget of ordinary Canadian families. As the story unfolds in markets from coast to coast. Massive influx of goods is much needed to help ease these sturdy markets. Increase access to retail markets, and hopefully prevent many BC residents from leaving their home states to settle. the home of their dreams.
