“Do you think the real estate bubble is about to burst?” I’m asked with a smile, Well first of all I’m not an economist, I’m a Realtor; it is said, probably the last person you should ask about the market or economy.
Real estate downturns historically happen after significant rate increases so with mortgage rates still very low the probability of a real estate collapse occurring seems remote.
Out of concern for a bubble forming, this past spring the Canadian government put in place stricter lending standards for mortgage applicants and new measures to discourage investors from speculative activity.
The government also has an Investor-Immigration program to attract experienced business people to invest into Canada’s economy.
In BC we experience an annual net in-migration gain already in excess of 40,000, so whether renting or buying this translates to new housing demand.
So the supply questions are about affordability and getting product to market. As these people continue to move into an expensive Vancouver, the ‘burbs become the next bastion of affordability.
My open houses are predominantly attended by a younger buying crowd, who with all due credit, are extremely well informed, and I really enjoy engaging them.
According to the 17th Annual RBC Homeownership Survey, conducted earlier this year by Ipsos Reid, thirty per cent of British Columbians say they are likely to purchase a home in the next two years, up from 26 per cent last year, according to the survey.
Interestingly, BC residents (31 per cent) are among the most likely in Canada to say they’ll buy a smaller home and they are fonder of lofts and condos (21 per cent) than any other province.
Port Moody seems to be a leader in this regard with almost 60% of the housing stock available in the City being smaller multi-family.
The demographic statistics show this has also attracted younger couples starting out (first time home buyers) to move here in the Tri-Cities, and I’m sure this is mainly because of the affordability.
If you’d like to speak with a local real estate expert that knows the Tri-Cities, call or email me, 778-878-0778.