More disposable income, tight supply keep B.C. housing market strong despite COVID-19: report
the Editors • October 8, 2020
Not even a global pandemic can keep the province's real estate industry down.
The British Columbia Real Estate Association’s latest report, The Unusual World of Pandemic Economics, seems to contradict its title. Or maybe that’s the point.
In any case, the hammering that many parts of the economy have seen thanks to the COVID-19 pandemic hasn’t been felt by the province’s real estate industry, at least according to the BCREA.
“Looking at recent data in the housing market, it would be difficult to tell there was a recession at all,” said BCREA chief economist Brendon Ogmundson in a release. “In a typical recession, we would see falling demand and rising supply, but this recession is anything but typical.”
The report points to uneven job losses across sectors, an increase in many households’ rate of savings, swift government aid, a tighter-than-ever housing supply and low interest rates as the drivers behind B.C.’s recent housing market highs.
Notably, high-income households have been much less affected by the crisis than middle- or lower income families. Household savings and disposable income have also increased, with the latter jumping 11 percent from the first quarter of 2020 to the second, according to the report.
With people not as keen to show their homes or move during the pandemic, supply has shrunk, too, creating some pent-up demand.
The BCREA’s current prediction for 2020 MLS sales is in the 80,000 range, which would beat 2019’s tally of 77,331. The group is also predicting a massive bump for next year.
“We expect home sales will sustain this momentum into 2021, aided by record-low mortgage rates and a recovering economy,” noted Ogmundson.
Every January in BC, BC Assessment sends its valuations to property owners. These letters form the basis of property tax values on real estate across the province. They are based on many factors, but sometimes the assessed value may come as a shock to you. If this is the case, and you feel the assessment is incorrect, you can file an appeal. Why your BC Assessment value may not be what you expect. To help equip yourself for the best chance of success during an appeal, it’s best to review some reasons why your assessed value may not be what you expected. BC Assessment bases its valuations on the following factors: The location of the property. That is, how desirable is the place it’s located? The size of the property. Is it a tiny house or a multi-room mansion? The size of the lot. Is it a small lot, or a massive multi-acre estate? View from the home. A mountain view is worth more than a line of dumpsters. The property age. Is it newly built or an outdated structure? It could also be historically valuable. Home add-ons such as carports, garages and decks. The sales’ prices from similar homes in your area. In essence, that means that surrounding properties can have an impact on your property value, in addition to your own property. For example, if all your neighbours improve their properties by renovating their homes, upgrading landscaping and similar efforts, this could increase your assessed value as a knock-on effect. In situations like this, filing an appeal to show that you didn’t undertake similar efforts could help your appeal succeed. 👉 Read the Article Here
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