Vancouver home prices to rise up to 5% next year: projections
Posted December 1, 2020 1:25 pm.
VANCOUVER (NEWS 1130) — It isn’t going to get any cheaper to buy a house in Vancouver next year, according to real estate projections.
The assessment from RE/MAX is the city’s residential prices will rise four to five per cent in 2021 because of the low number of homes on the market, record low-interest rates, and ongoing demand for properties.
“We’ll see unit sales continue to increase, but the big factor here is inventory,” says Elton Ash, regional executive vice president of RE/MAX. “There’s just a lack of inventory in detached homes and that is what’s going to drive pricing more than anything else.”
RE/MAX suggests the shortage in homes will likely continue, but Ash also notes young families are showing more interest in the suburbs.
RELATED: Rising B.C. home sales fueled by demand, record-low interest rates: economist
“Maybe living the way my parents lived is the way to go — out in the suburbs with a yard, equal value as my condo downtown, but a single-family detached home. We’re seeing that in a big way in Vancouver right now.”
The pandemic has put people in a situation where they’ve reassessed their living situation, says Ash. Working remotely and having kids at home had some people wanting to find more affordable housing elsewhere, he adds.
RE/MAX believes Pitt Meadows, Ladner, and Maple Ridge will be among what it’s calling the top neighbourhoods locally.
He adds real estate has defied skeptics during the COVID-19 pandemic, and the housing market wasn’t negatively impacted by unemployment.
RELATED: Greater Vancouver home sales, prices up during COVID-19 pandemic
“Canadians and people that live in British Columbia see real estate as a strong investment in their personal portfolio, whether that’s their principal residence of an investment property,” Ash says.
A survey done by Leger for RE/MAX found 52 per cent of Canadians believe real estate is one of the best investment options in 2021. Home renovations are on the to-do list for 40 per cent of Canadians while 29 per cent decided they need more space for living, according to the survey.
-With files from Sonia Aslam
