Real estate investors made up approximately one-quarter of homebuyers across B.C. between 2018 and 2020, according to a new analysis (opens in a new tab) from Statistics Canada. The proportion was even higher among condo units, one-third of which were scooped up by investor-buyers during the same period. While the analysis also looked at sales in New Brunswick and Nova Scotia, the highest rates of investor-buyers in census metropolitan areas across the three provinces were in Kelowna, Vancouver and Victoria, in that order. Tom Davidoff, an associate professor at UBC’s Sauder School of Business, said the significant level of real estate investment highlighted in the data was unsurprising, particularly in Vancouver, given the combination of low interest rates and low property tax rates that applied prior to the COVID-19 pandemic. “I’ve always said the instruction manual for Greater Vancouver has been to invest in real estate more than in productive activity,” Davidoff said. “That’s changed, of course, in the last couple years… it’ll be interesting to see how active investors are today.” Different types of investors The Statistics Canada analysis broke down investors into four categories: Business investors, non-residents of Canada, out-of-province investors, and in-province investors. For the report, business investors were defined as for-profit companies or government entities, with the author noting the former made up the bulk of those purchases, “given that most government entities are considered non-profit organizations.” In-province investors – defined as B.C. residents who own at least two residential properties, if one is deemed an investment – bought more homes than any other investor category between 2018 and 2020, accounting for 16.6 per cent of total sales. Investors living outside Canada were the next largest group, making up 3.2 per cent of purchases during that period. Business investors accounted for 2.8 per cent, and out-of-province investors made up 2.2 per cent. High level of immigrant investment The analysis noted that immigrants are “over-represented” in the in-province investor category, at least in major cities. In 2019, immigrants made up 67 per cent of B.C. resident investor-buyers in Vancouver, despite representing just under 42 per cent of the population. Similar disparities were found in Kelowna and Victoria. “These results may be partly explained by previous Statistics Canada research that found that immigrant families were more likely to invest wealth in real estate compared with other assets,” the author noted. The analysis also pointed out that immigrant investor-buyers had the same median income as non-investor buyers, at $60,000 – which is well below the median income of Canadian-born investor-buyers, at $90,000. What’s happened since the pandemic? Apart from the interest rate hikes and property tax increases enacted since 2020, Davidoff said some B.C. policies – such as the short-term rental restrictions implemented earlier this year - could have a cooling effect on real estate investments. As to whether the government should be doing more to discourage investors, the associate professor suggested these types of purchases are not major contributors to skyrocketing housing prices. “I would say investors are probably more active when they think prices are rising,” he said. “So the causality, in a way, would go from ‘expensive markets where there are high growth prospects are likely to see investors’ moreso than ‘the presence of investors is what causes a run-up in prices.’” The most important issue from a public policy perspective is to ensure rents are affordable, Davidoff argued. “It’s nice if people can afford to buy a home, it’s necessary that people can afford to rent a home,” he said. “So I think the most important thing is to get housing built, whether it’s a condo that an owner occupies, a condo that an investor rents to somebody, or a purpose-built rental that an institution rents to somebody. They’re all fine in my book.” Andrew Weichel CTVNewsVancouver.ca Journalist

Wondering what the latest Fraser Valley Real Estate Board statistics mean for you? Whether you’re buying, selling, or just curious, we’re diving into the latest market trends and what they reveal about opportunities heading into the new year. 📊 In this video, we’ll explore: 1️⃣ Current inventory levels: What they mean for buyers and sellers. 2️⃣ Home prices: Where are they headed as we close out 2024? 3️⃣ Sales activity: Slowing down or staying steady? 4️⃣ December 15th mortgage threshold changes: What first-time buyers need to know. 5️⃣ How the market might shift as we approach the spring season. 💬 What do you think of the current market? Are you planning to buy or sell soon? Share your thoughts in the comments below—I’d love to hear from you! 📅 Ready to discuss your real estate goals? Use the link below to schedule a call with me and explore your options in today’s market: 📅 https://calendly.com/andyschildhorn 📞 778.835.8957 📧 [email protected] 🌐 www.AndytheRealtor.com 📺 Don’t forget to like, subscribe, and ring the bell for more real estate updates and insights! Your Langley and Fraser Valley Realtor, Andy Schildhorn 🏡 🏡 Thanks for watching, and see you in the next video! 👋

Real estate experts say the latest interest rate cut from the Bank of Canada will spur activity in the new year, leading to markets heating up in the winter months. The Bank of Canada moved to lower its key policy rate Wednesday by 50 basis points to 3.25 per cent. Read more here.

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Are you trying to decide if now is the right time to buy or sell your home? With inventory levels growing, prices adjusting, and interest rates offering new opportunities, the Fraser Valley real estate market is shifting—and it’s crucial to know how to navigate these changes. In this video, I’ll cover: 1️⃣ Why now is the time to explore the growing inventory 2️⃣ How to negotiate confidently in today’s market 3️⃣ The opportunities presented by motivated sellers 4️⃣ How falling interest rates are boosting buyer power 💬 What’s your biggest question about today’s real estate market? Drop your thoughts or questions in the comments below—I’d love to hear from you! 📅 Ready to discuss your real estate goals? Use the link below to schedule a call or meeting: 📅 https://calendly.com/andyschildhorn 📞 778.835.8957 📧 [email protected] 🌐 www.AndytheRealtor.com 📄 Read the full Fraser Valley Real Estate Board report here: https://rly.forsale/60v 📺 Don’t forget to like this video, subscribe to the channel, and ring the bell for weekly real estate insights and tips! Your Langley and Fraser Valley Realtor. 🏡 Thanks for watching, and see you in the next video! 👋

New figures from Statistics Canada confirm a declining trend in new housing units, but an expert predicts this could soon be trending the other way. Figures released Tuesday show 3,163 housing units created in B.C. in September 2024, down from 3,895 units in August and down from the 2024 peak of 7,128 in April. The average for the last six months was 3,783 units rounded up. Brendon Ogmundson, chief economist with the British Columbia Real Estate Association, is paying particular attention to the trend line when it comes to the number of new multi-unit dwellings. "In B.C., that trend has been falling for the past several months with the number of new multi-unit dwellings over the past six months trending at a 3,500-unit pace as of September," he said. "While not low, that level of activity isn't what I'd like to see to be confident in our ability to meet aggressive provincial housing targets. With interest rates falling and market conditions improving, we could start to see that trend picking up over the next year." Looking at specific B.C. municipalities, the Vancouver Census Metropolitan Area recorded 1,658 new residential units, a drop of almost 49 per cent compared to September 2023. Trend lines also pointed downward in Victoria, Nanaimo and Kelowna. These numbers reflect building conditions as they existed for all of 2023 and much of 2024 when interest rates had hit a historic high. They are now trending downward following cuts in the overnight rate by the Bank of Canada in June, July, September and in October. The overnight rate — which helps sets rates for a number of financial instruments — was five per cent in early June 2024, the highest rate in more than two decades. Wolf Depner Nov 14, 2024 3:28 PM