{"id":17189,"date":"2021-01-19T11:11:00","date_gmt":"2021-01-19T19:11:00","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=17189"},"modified":"2021-01-06T11:41:26","modified_gmt":"2021-01-06T19:41:26","slug":"low-mortgage-rates-will-drive-bc-housing-market-prices-up","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2021\/01\/low-mortgage-rates-will-drive-bc-housing-market-prices-up\/","title":{"rendered":"Low Mortgage Rates will Drive BC Housing Market Prices Up"},"content":{"rendered":"<p style=\"text-align: justify;\">Vancouver-based Central 1 Credit Union is among those forecasting that the \u201cexceptionally strong\u201d 2020 housing market in B.C. will continue to surge, with average prices rising 5.6% in 2021 and a further 4% in 2022.<\/p>\n<p style=\"text-align: justify;\">The outlook contrasts with the Royal Bank (TSX:RY), which is calling for an 8% decline in Canadian home prices during the year; and both the Canada Mortgage and Housing Corp. (CMHC) and Moody\u2019s, which are predicting price drops of up to double-digits.<\/p>\n<p style=\"text-align: justify;\">Real estate brokerage Royal LePage, however, contends that the current strong housing sales and rising prices will continue, led by Metro Vancouver. In a December 15 release, Royal LePage said the average price of a home in Canada will increase 5.5% year over year to $746,100 in 2021.<\/p>\n<p style=\"text-align: justify;\">Royal LePage forecasts that Vancouver will see the second-largest increase in average home prices in 2021: 9% to $1.26 million compared with 2020.<\/p>\n<p style=\"text-align: justify;\">Central 1 Deputy Chief Economist, Bryan Yu in Central 1\u2019s latest BC Housing Outlook: 2020-2022, released December 21, is also bullish on BC\u2019s housing market.<\/p>\n<p style=\"text-align: justify;\">\u201cThe rebound in housing demand from pandemic-induced lows in the spring has been spectacular,\u201d said Yu.<\/p>\n<p style=\"text-align: justify;\">He noted that average home prices in BC were up 13% year over year in October, with the strongest gains recorded in the Interior and Island markets due to increased demand for recreational properties<\/p>\n<p style=\"text-align: justify;\">\u201cThe median price of a home in BC is forecast to rise by 9.3% (to $585,000) this year, with a further 5.6% increase (to $615,000) expected in 2021, followed by a 4% increase (to $640,000) in 2022,\u201d Yu predicts.<\/p>\n<p style=\"text-align: justify;\">Extremely low mortgage rates are a key catalyst for surging home sales, the Central 1 outlook confirmed.<\/p>\n<p style=\"text-align: justify;\">HSBC (TSX:HSB-C) drew headlines recently with a 0.99% five-year variable mortgage rate, the lowest in Canadian history, and it is not uncommon for mortgages to be offered at below 2%.<\/p>\n<p style=\"text-align: justify;\">Housing demand will also lead to a rebound in BC housing starts, which have dropped 21% this year compared with a year earlier. Yu said that decrease can be traced to the pandemic and the province\u2019s foreign homebuyer tax.<\/p>\n<p style=\"text-align: justify;\">\u201cTotal housing starts are forecast to rise 6.5% in 2021 to 37,700 units, increasing by a further 4.5% in 2022 to 39,400 units,\u201d he now predicts.<\/p>\n<p style=\"text-align: justify;\">But others are not so confident in BC\u2019s housing outlook.<\/p>\n<p style=\"text-align: justify;\">\u201cThere are zero fundamentals supporting the rise in the housing market, other than the Bank of Canada\u2019s printing press and people\u2019s fears of a currency continuing to lose purchasing power,\u201d said Vancouver realtor and analyst Steve Saretsky.<\/p>\n<p style=\"text-align: justify;\">Citing \u201ctremendous risks\u201d from the COVID-19 pandemic, CMHC said it stands by its forecast, first issued in May, that average Canadian home prices will fall between 9% and 18% from pre-pandemic levels before beginning to recover in 2021\u2019s first half. \u2022<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/biv.com\/article\/2021\/01\/housing-market-will-continue-defy-gravity-central-1\" target=\"_blank\" rel=\"noopener noreferrer\">Central 1 : Housing Market will Continue to Defy Gravity<\/a> by Frank O&#8217;Brien | BIV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vancouver-based Central 1 Credit Union is among those forecasting that the \u201cexceptionally strong\u201d 2020 housing market in B.C. will continue to surge, with average prices rising 5.6% in 2021 and &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2021\/01\/low-mortgage-rates-will-drive-bc-housing-market-prices-up\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-17189","post","type-post","status-publish","format-standard","hentry","category-mortgage"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Low Mortgage Rates will Drive BC Housing Market Prices Up &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2021\/01\/low-mortgage-rates-will-drive-bc-housing-market-prices-up\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Low Mortgage Rates will Drive BC Housing Market Prices Up &#8226; 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