In the current issue of News From Nexus — which you will find either in your e-mailbox or under “news” on this website's menu — you may recall what Central 1 had to say about the 2021 real estate market.
It bears repeating…and elaborating.
Those were the words from Brian Yu, deputy chief economist at Central 1, a network of 45 credit unions in British Columbia, and 250 nation-wide.
“Economic growth is forecast to pick up steam in the second quarter of 2021 onwards as the vaccine drives higher investment spending and consumer spending is unleashed when social and travel restrictions are eased.”
Those were the words from Brian Yu, deputy chief economist at Central 1, a network of 45 credit unions in British Columbia, and 250 nation-wide.While other financial forecasters are expecting a decline in home prices this year, Central 1 says it anticipates the market will be strong.
“The rebound in housing demand from pandemic-induced lows in the spring has been spectacular,” said Yu. “The median price of a home in B.C. is forecast to rise by…5.6% increase (to $615,000) expected in 2021, followed by a 4% increase (to $640,000) in 2022.”
In reflecting on what happened in the year of the pandemic, Yu pointed to the strongest gains in the Interior and Island markets, due to increased demand for recreational properties. Low interest rates contributed to the increases everywhere, coupled with pent-up demand.
He also had a prediction for housing starts:
“Total housing starts are forecast to rise 6.5% in 2021…increasing by a further 4.5% in 2022.”
Meanwhile, the Royal Bank joined Central Mortgage and Housing in predicting a downturn in home prices this year.
Meanwhile, the Royal Bank joined Central Mortgage and Housing in predicting a downturn in home prices this year.
Who will be right?