The days of impressive yearly price growth may have passed in Vancouver, but an influx of potential renters may pique investor interest.
BC boasts one of the strongest economies, with GDP expected to grow 3.5% this year and employment expected to jump by 3.6% to2.46 million this year.
As a result, the province is expected to attract an influx of migrants from other provinces looking for jobs and, indeed, new homes.
“British Columbia’s position as the best performing economy in the country is bolstering consumer confidence and housing demand,” Cameron Muir, BCREA Chief Economist, said. “Strong employment growth, a marked increase in migrants from other provinces, and the ageing of the millennial generation is supporting a heightened level of housing transactions. However, a limited supply of homes for sale is causing home prices to rise significantly in many regions, particularly in the Lower Mainland condominium market.”
Most BC regions are experiencing constricted supply, according to the BCREA.
“This imbalance is pushing prices higher in the most affordable home types and will lead to a drag on home sales if new supply isn’t sufficient to meet demand. However, strong housing demand and tight supply hasn’t gone unnoticed by home builders,” it said in its latest report. “There are nearly 40,000 units under construction in Metro Vancouver alone, a 60 per cent increase from the previous peak in 2008. Once completed, market conditions are expected to reflect greater balance between supply and demand and reduce further erosion of affordability.”
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Investors have been overlooking this one major market, but is it time to give it a second look?