The housing market showed resilience to the pandemic, which took many by surprise, who did forecast a significant decline in real estate prices because of the pandemic. On the contrary, the Vancouver real estate market is reaching new heights and the prices are growing faster compared to other countries. Here, we will look at reasons for such real estate price surge despite the current adverse situation.
Top Reasons Why Vancouver Real Estate Prices are Continuing to Increase
Low inventory supply is a reason that is putting pressure on real estate prices since people are less inclined to list their properties.
The reason is that after selling your home, propel do not see a lot many options in terms of purchasing a new property and the prices are relatively high for many. Due to this reason many are considering renovation as a better option compared to selling their home.
Flourishing Immigration Rate
The flourishing immigration rate is driving demand for Vancouver real estate in the region and prices are increasing due to such steady increase in demand. According to studies, people coming into the country are expected to buy one out of five homes listed on the market.
These new comers have good confidence in country's real estate market and bring in sufficient savings for buying a property.
Falling Interest Rates
Falling interest rates are also encouraging housing demand and an upward movement in Vancouver real estate prices. Such low rates are making mortgages attractive and generating greater interest in buyers.
The Bank of Canada introduced low rates with the aim of supporting spending and also to stimulate the economy. Monetary policies to support the economy and facilitate economic recovery are anticipated to continue.
Continued Trend of Work from Home
Due to pandemic, many people started working from home and this trend has sustained itself, fueling growing demand for homes.
People are buying a new home to upsize and to meet the need for more space so that kids can have separate space to learn and there is also enough space to setup a home office.
As we can see, there are various reasons that are causing real estate prices to maintain their upward trend. If you are looking to purchase a home, then we are the Vancouver Realtorto get in touch with.
Having several years of experience as Vancouver real estate agents, we will be able to find you the right property. So, give us a call today - let's get the ball rolling!