The British Columbia Real Estate Association (BCREA) recently published an shocking report about the province’s housing market in September. It found that home sales soared to $49.7 billion for the first nine months of 2020, up 25 per cent from the same period a year ago. Instead of enduring a COVID-19 pause, the province’s housing market was instead hyperactive over the course of 2020.
BCREA data also highlighted that homebuyers acquired more than 65,000 properties from January to September, a 12.5 per cent jump year-over-year. The average price year-to-date swelled 11.2 per cent to $764,298.
But how could this be happening? The association published a separate report, titled “The Unusual World of Pandemic Economics.” It assessed how the province’s real estate market is booming, citing higher savings rates, government income support, a tight housing supply, uneven job losses, and historically low interest rates.
“One thing we know for sure is that pandemic economics are very unusual and in these unprecedented times, history may not be as strong a guide,” the report stated.
Put simply, although the Canadian economy is in a recession, this economic downturn is anything but normal.
While the impressive resilience and recovery of the Vancouver real estate market has made national headlines, what about other cities that are in proximity to the nation’s third-largest city? While recovery within these municipalities has also been strong, prices have yet to swell to unattainable levels, making them viable destinations for homebuyers with sights set upon the Vancouver area. We have compiled a list of five the top 5 real estate markets that have managed to strike the balance between desirability and affordability a little better than neighboring Vancouver.
5 Affordable Markets to Buy Real Estate Close to Vancouver
#1 Kelowna
Okanagan Mainline Real Estate Board (OMREB) reported that 21.79 per cent more homes were sold in the Kelowna region in September compared to the same time last year. The numbers pointed to rising property valuations, with single-family homes, townhomes, and apartment condos booming. OMREB President Kim Heizmann noted that the COVID-19 public health crisis had forced homebuyers to assess things differently, including their living space. Kelowna sees some properties still reasonably priced as you could scoop up a condominium for as low as $244,400.
#2 Victoria
According to the Victoria Real Estate Board (VREB), 60.6 per cent more properties were sold in September 2020 than September 2019. It should be noted, however, that on a month-to-month basis, home sales were up just one per cent. The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core increased year-over-year by 3.5 per cent to $879,200. But the benchmark value for the same home slipped by 1.1 per cent in August.
What was the reason for the monthly decline? New supply entered the market, says Victoria Real Estate Board President Sandi-Jo Ayers.
“We had some much-needed new inventory enter the market over the course of September,” stated Ayers in a news release. ”But the supply has not been sufficient to outstrip the heightened demand. We continue to see multiple offers and pressure on pricing across many neighbourhoods. Looking forward, it is impossible to determine what our fall market will look like, but if the past couple of months are an indication, we may see higher seasonal numbers than we would have expected in a more predictable year. That said, since our situation can change in a blink, we cannot look at the past months as the start of a trend, but instead as a moment in our market during an unpredictable time.”
Local Victoria real estate agents are hopeful that prices (and some of the fierce competition) may ease in the coming months amid these new stocks arriving on the market.
#3 Kamloops
Kamloops is one of the most beautiful cities in Canada, so it’s not surprising that this riverside city is drawing homebuyers from the Vancouver Core as well as from across the country. Although demand is strengthening, the average residential price remains reasonable for new market entrants.
KADREA President Wendy Runge thinks it could be hard to forecast the short- or medium-term future of the Kamloops real estate market.
“Real estate sales numbers for last month have once again shown us that the impact of the pandemic on the market has been more positive than originally predicted,” Runge explained in a statement. “For the fourth month running, the number of units sold has been setting records that not many would have contemplated at the beginning of the pandemic. While sales usually dip in September and then pick up again during the fall months until winter, the trend we are seeing right now is unlike anything that we have seen before.”
#4 Surrey
Real estate agents are describing the housing situation in Surrey and the broader Fraser Valley region with one word: historic. For the fourth consecutive month, the housing market experienced robust growth as the Fraser Valley Real Estate Board recorded a 9.4 per cent increase in September from August.
The benchmark price for a single-family detached house rose 1.3 per cent month-over-month to $1.032 million. But how would this be affordable?
The first factor is that interest rates are near zero; more homebuyers are taking advantage of these historically low rates, borrowing greater amounts to snatch up real estate that may have previously been out of reach. Plus, the Bank of Canada (BoC) has signaled that it is not raising rates for a few more years, meaning that homebuyers can lock in these extremely low rates.
The second aspect is that new supply is coming to market, which could alleviate the upward trend and allow newcomers to scoop up properties. In September, the number of new listings climbed 6.2 per cent from August.
“For many existing homeowners and first-time buyers, their buying power is greater than it’s been in a long time. Interest rates are very low, people have saved money over the last few months, and they’re choosing to invest it in their most important asset. Sellers are also recognizing that with lower than normal inventory, this is a smart time to list,” said Fraser Valley Real Estate Board President Chris Shields in a news release.
#5 Burnaby
Burnaby Now recently sported a headline that accurately summarized the city’s housing market: “COVID can’t stop Burnaby real estate as Metrotown project nearly sells out in 2 weeks.”
The Real Estate Board of Greater Vancouver (REBGV), which covers Burnaby, reported that residential home sales in the region surged 36.6 per cent in August 2020 from the previous year. But for people who are considering relocating to Burnaby, the numbers suggest that new supply is coming. There was a 55.1 per cent increase in newly listed properties – detached, attached, and condominiums – for sale in August. This was 34.8 per cent above the ten-year August new listings average.
Put simply, the demand is strong, but supply is beginning to keep up, which should slow down price growth.
Is Affordability Gone from British Columbia Real Estate?
For people who have been sitting on the sidelines and wanting to finally submit an offer on a property, the rising prices across the province and the rest of the country can seem rather intimidating. While the fleeting COVID-19 discount is unlikely to return, many cities near Vancouver do offer affordability if you know where to look. Remember, it might not seem like it, but 75 per cent of Canada’s regions are “undervalued,” and this includes some parts of B.C. Many B.C. cities are beginning to witness new inventory come to market, which could relieve some of the higher prices seen this year.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
