It’s no secret that Vancouver’s housing market is one of the highest in the country – in fact, it’s been consistently ranked as the second-highest Canadian city real estate market (or overvalued, according to the Financial Post), with Toronto dubbed as the country’s first most unaffordable housing market.
Predictions for Vancouver’s Housing Prices in 2020
A report by the British Columbia Real Estate Association (BCREA) predicts that 2020 average MLS Price will be 1 percent higher than that of 2019, translating to an average home price of $995,000. In tandem with this, the number of unit sales predicted for the upcoming year will be 30,100, a shockingly high 18.2 percent increase from the previous year.
Needless to say, Vancouver’s market is always hot. But there are times that are better than others for homebuyers.
When The Vancouver Real Estate is (Truly) Hot
As with many aspects of the economy, there is a seasonality to the housing market in any city, including Vancouver. When looking for a home to buy (or sell) the spring months are typically a common time for housing to become listed on the market. With this change in the seasons, homebuyers will find that, despite the increased number of listings to choose from, the competition amongst homebuyers so too increases.
This increase is generally a result of sellers remaining confident heading into the summer months, which affects the seller’s ability to find success in lowball offers. In some cases during this hot season, homebuyers may find themselves in a bidding war.
With springtime as the high season in terms of housing prices, once can begin to see a slight shift through the summer months. With many home buyers and sellers taking time off, many choose not to list their homes. With both parties generally taking a step back from their real estate deals, there is both less inventory and less of a competitive market amongst sellers.
Then, the fall season hits, bringing the flurry of real estate sales to a much slower pace in preparation for the extremely slow traffic that is seen in the winter. So, for sellers, mark your calendars for the spring where many homebuyers are beginning to think about their next property move. And for prospective homebuyers? Set your sights on buying a home in the much less competitive market during January and early February.
Some experts, however, look at the year 2020 as a whole with strong senses for a balanced market, meaning the homebuyers and sellers will experience a more normalized market for possibly the next two years.
Beyond the Hot Real Estate Market Periods in Vancouver
There are several factors at play that could affect the state of Vancouver’s housing market and potentially turn one of the country’s overall hottest markets into a slightly less competitive market.
Foreign Buyers Tax
One of the commonly reported contributors to the increased housing prices in Vancouver’s market is foreign buyers. As a result, British Columbia introduced a foreign buyers’ tax in 2016 that was designed to make the purchase of property by non-residents or citizens more cost-prohibitive. This tax structure imposed a 15 percent tax on foreign property buyers for housing throughout Metro Vancouver.
While there is some criticism around this tax, British Columbia isn’t the first market to implement this taxation structure. According to a news article by Jeremy Hainsworth for Vancouver Is Awesome, Hong Kong, Australia, Singapore and Israel have all introduced a form of this taxation to maintain a higher affordability rate for residents and citizens in comparison to the affordability for foreign nationals looking to purchase property.
Where Interest Rates Are Going in 2020
Canadian Mortgage Trends predicts that, in 2020, the Bank of Canada is expected to cut their mortgage rates in 2020. This follows suit with 40 banks around the world that had cut their rates in the year 2019 in response to a slower market during that same year. To be specific in their predictions, the article suggests a 30 percent chance of a rate cut by the Bank of Canada by July of this year.
Stress Tests in Vancouver’s Housing Market
In order to be approved for a mortgage for a home in Vancouver, most homebuyers are subject to a stress test. A stress test is part of a mortgage qualifier test that evaluates what mortgage amount a homebuyer is eligible for.
Essentially, a stress test is a homebuyer’s opportunity to prove that they can afford to pay the mortgage payments with the expected interest rate for the foreseeable future. A stress test is conducted by any bank lender but is not typically carried out by private lenders and credit unions.
In order to pass the mortgage stress test and secure the mortgage that you’re looking for, a prospective home buyer will need to qualify at either the contracted mortgage interest rate plus 2 percent or the Bank of Canada’s five-year benchmark rate, whichever option is higher.
Understanding a mortgage stress test is a valuable and necessary aspect of buying a home in Vancouver, hot market or not. Especially during a hot market, though, it’s important to be realistic about your ability to pay off the mortgage you are seeking.
Buying a Vancouver Residential Property in 2020
A PwC report suggests that, in conjunction with Vancouver’s mellowing economy, the market will begin to level out. Further, an increase in supply and the number of policies that are designed to reduce the volatility of the housing market will further strengthen the balance in the housing market, PwC predicts.
More Insights Into Vancouver’s Housing Market
Vancouver is the ideal place to live for many Canadians; the urban amenities, strong job market and diversity offer a lot of benefits for many residents, with the added bonus of having quick access to ample recreation. But with all these perks come the highly competitive and dynamic real estate market in the Great Vancouver area.
Stay on top of the city’s real estate market by visiting the REMAX Canada blog here.
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.
